Nazara Technologies shares down 70% from all-time high: Buy Rekha Jhunjhunwala backed stock on the dip?
3 min read 26 Mar 2023, 10:58 PM ISTNazara Technologies Ltd is a small-cap company with a market capitalization of ₹3,383 Cr that operates in the software sector.
PremiumNazara Technologies Ltd is a small-cap company with a market capitalization of ₹3,383 Cr that operates in the software sector. Nazara Technologies is a foremost India-based extensive gaming and sports media platform, with an existence in India as well as global markets such as Africa and North America, and offering services in the interactive gaming, eSports, ad-tech, and other gaming ecosystems. Recently, Sportskeeda, a Nazara subsidiary, announces acquisition of Pro Football Network, the #3 NFL Publisher in the US and the transaction includes the acquisition of a 73.3% stake for ₹INR 16 crores through the primary infusion of capital and secondary stock purchases. Moreover, Sportskeeda Inc. maintains the right to acquire up to 10% and 8% additional stock of the Pro Football Network LLC in CY24 and CY25 respectively.
Share price history of Nazara Technologies
On Friday, the shares of Nazara Technologies closed on the NSE at ₹514.00 apiece level, up by 0.73% from the previous close of ₹510.30. The stock recorded a total volume average of 3,91,054 shares compared to the 20-Day average volume of 288,241 shares. In the previous five years, the stock has plummeted 35.62%, and in the last three years, it has dropped by more than 48%. It has dropped 35.62% in the previous year, and it has dropped 16.25% year to date in 2023.
The Nazara Technologies IPO operated from March 17, 2021 to March 19, 2021, with an issue price range of ₹1100 to ₹1101 per share, and the company was listed on the exchanges on March 30, 2021. The stock touched a 52-week-high of ₹897.50 on (23-Mar-2022) and a 52-week-low of ₹475.05 on (22-Jun-2022), indicating that at the current market price, the stock is trading 42.72% below the 1 year high and 8.19% above the 1 year low.
The stock made an all-time high of ₹1,678.00 on 4th October 2021 and touched an all-time low of ₹475.05 on 13th March 2023, indicating that at the current market price, the stock is trading 69.36% below its all-time high level.
According to the December 2022 shareholding pattern available on the exchanges, Rekha Jhunjhunwala holds approximately a 10% stake in Nazara Technologies or 65,88,620 equity shares in the gaming firm. According to Trendlyne, she publicly holds 29 stocks with a net worth of more than ₹25,680.4 crore as of March 23, 2023.
Buy Nazara Technologies?
Commenting on the future outlook of Nazara Technologies, Rahul Ghose, Founder & CEO – Hedged, an algorithm-powered advisory platform said “Nazara Technologies saw a huge spike its profits by more than 200% recently but valuations still remain a concern even at this point as the stock is trading in excess of a price to book value of 3. The stock is finally looking though to bounce from its all time lows, but this has not yet triggered a buy on the charts. The near term resistance for the stock is at 537 and one should look to initiate a buy once they see a bullish closing above this level. The stock is oversold on the weekly charts as well and a bounce will ensure that it closes above its 10 day & 20 day EMA, which paves way for a shorter term bounce. For the long term, the buy level is still quite far away as the stock is significantly lower than its long term moving averages of 100 & 200 SMA and that buy would trigger only after we see a bullish candle closing on the weekly chart above the 655 level. On the downside, 460 to 480 remains a good support zone for this stock."
A R Ramachandran, Co-founder & Trainer-Tips2trades said "Extremely low debt to equity ratio, a turnaround to profitability with consistency in profit growth over the past few quarters coupled with the lowest PE ratio since the IPO makes Nazara Technologies an attractive buy for long term investors at current levels. A steady improvement in operating margins in the coming financial year could further boost sentiment in this stock. Technically, investors should start buying this stock on a Daily close above 525. Targets can be 598 & 635 in the coming weeks."
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
