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HomeEconomyRakesh Jhunjhunwala stock dropped 57% so far in 2022; Analysts say...
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Rakesh Jhunjhunwala stock dropped 57% so far in 2022; Analysts say valuations rich; check target price MPNRC

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Rakesh Jhunjhunwala Portfolio: After the gaming stock hit a new all-time low of Rs 998.05 in the previous session, Nazra Technologies rose nearly 6 per cent to Rs 1,055.40 on the BSE on Thursday. The brokerage said that the company is a jack of many sports, but barring eSports, Nazara is not a major player in any other segment.

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stock price history

The stock rose to an all-time high of Rs 3,356 in October last year; However, since then the Jhunjhunwala stock has lost over 68 per cent. Year-over-year (YTD), Nazara Tech’s share price is down more than 57 percent. Domestic research and brokerage firm JM Financial Services has launched coverage on Nazara Technologies, saying the valuation is ‘prosperous’.

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JM Financial is targeting 4 per cent rise over the counter. JM Financial recommends holding the stock because it believes that in the near term, eSports will continue the growth of this gaming stock aided by recent acquisitions. eSports is Nazara’s largest (49 per cent revenue share, FY22) and fastest growing segment. Nodwin, Nazara’s eSports subsidiary, has an 80 percent market share in India’s nascent (USD 100mn) but rapidly growing eSports market. JM Financial said that Nazra’s partnerships with global esports platforms, game publishers and brands are uniquely positioned to lead eSports penetration in India.

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“Any potentially adverse regulation on real-money gaming (RMG) will not only reduce competitive intensity, but also increase the reduction value for Nazara – this will make us more constructive on the business outlook and stock,” it said.

On the positive side, JM Financial said that the vision has turned into a diversified gaming company with presence in eSports, gamified learning, simulation as well as real money games.

The brokerage said it has grabbed hold of India’s $1.8 billion online gaming market, adding Nazara’s prudent capital allocation strategy means the opportunity has come at a fair price.

“Furthermore, unlike other gaming platforms, Nazara’s unaffiliated gaming assets limit its ability to broaden its acquisition funnel and maximize gamers’ wallet share, in our view,” it said.

Nazara Tech sets record date

The board of Nazra Technologies has fixed June 27, 2022 as the record date for the proposed bonus issue of shares. The board of the company approved a bonus of one share for each share held by the shareholders.

“It is hereby informed that the Board of Directors of the Company has fixed Monday, the 27th June, 2022 as the record date for the purpose of ascertaining the eligibility of the shareholders for issue of Bonus Equity Shares of the Company in the ratio of one 4 each of the new fully paid-up equity shares of Rs.4 each, existing equity shares of Rs.4 each,” Nazara Tech reported in an exchange filing last week. Bonus shares held by a company on its own Additional shares issued to existing shareholders are fully paid for.

The views and investment suggestions of experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decision.

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