Rakesh Jhunjhunwala-backed stock jumps 16% after Q1 results

Rakesh Jhunjhunwala portfolio: After hitting fresh 52-week low of ₹475.05 on NSE in July 2022, online gaming stock Nazara Technologies shares have rebounded strongly from its lows. After announcement of strong Q1 results on Friday last week, Nazara Technologies share price today opened with a big upside gap and went on to climb to its intraday high of ₹625.50 apiece levels, logging more than 16 per cent jump from its Friday close price of ₹530.10 per share.

According to stock market experts, Nazara Technologies share price is ascending due to strong quarterly results announced on Friday. However, they said that the market has given much premium to this Q1 earnings numbers because most of the growth recorded by the company during April to June 2022 quarter is because of the merger and acquisition by the company. They said that Rakesh Jhunjhunwala-backed online gaming company is still behind its organic numbers. So, profit-booking is widely awaited and the stock may have a limited surge from here.

Speaking on the reason for rise in Nazara Technologies share price today, Avinash Gorakshkar, Head of Research at Profitmart Securities said, "Stock is ascending dui to the strong Q1 numbers announced by the company on Friday. However, such a rise in the stock is unexpected because organic growth is still not there in the quarterly results announced on 29th July 2022. Most of the growth in the company has come from the merger and acquisition done by the company during the recently ended quarter. So, profit-booking in the counter is widely awaited and one should wait for few more quarters and enter only when its organic growth comes back on track."

Echoing with Avinash Gorakshkar's views, Sumeet Bagadia, Executive Director at Choice Broking said, "This online gaming stock has bounced from tis lows and it has strong support zone at ₹525 to ₹550 apiece levels. It may go up to ₹650 to ₹670 apiece levels. So, one should wait for some correction in the stock as it has already surged more than 16 per cent today."

Since October 2021, this Rakesh Jhunjhunwala-backed stock has been under sell-off heat and hit fresh 52-week low of ₹475.05 per share last week.

Rakesh Jhunjhunwala shareholding

According to Nazara Technologies shareholding pattern for April to June 2022 quarter, Big Bull Rakesh Jhunjhunwala owns 65,88,620 shares, which is 10.03 per cent of total paid up capital of the company.

Nazara Technologies Q1 results

On 29th July 2022, Nazara Technologies reported over 22 per cent YoY rise in consolidated net profit at ₹16.50 crore in Q1FY22. This could become possible due to near 70 per cent jump in revenue of the company in the same period.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.