Rakesh Jhunjhunwala portfolio: According to stock market experts, Big Bull-backed company has been able to reduce its debt and has become almost a debt-free company
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Rakesh Jhunjhunwala portfolio: Big Bull backed Nazara Technologies shares have given sharp upside movement in recent trade sessions. In last one month, this Rakesh Jhunjhunwala stock has shot up from ₹1925.90 to ₹3042.15 apiece levels — logging around 58 per cent rise in this period. However, stock market experts see more gains in the counter.
According to stock market experts, Rakesh Jhunjhunwala backed company has been able to reduce its debt and has become almost a debt-free company. They said that one can take long position in the counter as Nazara Technologies share price may go up to ₹4000 in next 12 to 18 months.
Speaking on the fundamentals supporting Nazara Technologies share price to further go upside; Santosh Meena, Head of Research, Swastika Investmart said, "Nazara Technology is a first-of-its-kind company that got listed in India which has rights over IP and assets across grassroots, regional, national, and international e-sports. The online gaming business is expected to grow strongly and it is extremely popular amongst the millennial. The company adopts the strategy to acquire good business and merge them with their own company also give a seat to the management of Target Company in the board. This strategy has helped the company to grow at a significant pace. The company's focus on inorganic growth and favorable macro-economic and demographic drivers would lead the company to new heights along with the availability of cheap smartphones, high-speed internet, and a reduction in data prices."
Echoing with Santoh Meena's views; Rahul Sharma, Co-Founder, Equity99 said, "Company has reduced its debt and is almost debt-free. Its PAT has grown at CAGR 50 per cent over last 3 years. During FY21 Company's Debtors days reduced from 100 days to 55 days and also company reported highest ever cash equivalent balance of ₹372 crore, which shows great liquidity."
On his suggestion to stock market investors in regard to this Rakesh Jhunjhunwala stock; Santosh Meeena of Swastika Investmart said, "The technical chart is looking overstretched for time being and momentum indicators are also indicating an overbought territory that may lead to some profit booking in the counter. ₹3250 to ₹3300 zone could as an immediate resistance zone while ₹3500 will be the next important hurdle. On the downside, ₹2750 to ₹2650 will be the first demand zone while ₹2250 will be the next important support at any correction."
Asking investors to take long position in this Rakesh Jhunjhunwala portfolio stock, Rahul Sharma of Equity99 said, "Considering recent declines after such long run-up since listing, a small correction may arrive therefore we would advice to wait for fresh entry and use the declines near ₹2400 ₹2600 levels wisely, only to opt for long term investment with target price of ₹4000 in 12-18 months time frame."
Rakesh Jhunjhunwala holding in Nazara Technologies
As per the shareholding pattern of Nazara Technologies for April to June 2021 quarter, Rakesh Jhunjhunwala holds 32,94,310 shares of 10.82 per cent stake in the company. The company is yet to announce its July to September 2021 shareholding pattern.