Nazara Technologies Shares – Why CLSA has a SELL recommendation on this stock? Zee Business’ Mansi Dave has this report

Nazara Technologies Shares – Nazara Technologies shares ended at Rs 1515 on Friday, witnessing almost a 9 per cent fall on the NSE. The stock price depreciated by Rs 147. Brokerage firm CLSA has given a SELL call on this counter? Want to know why? Here is a detailed report by Zee Business’ Mansi Dave.

Nazara Technologies stocks have fallen by almost 5 per cent over month, Dave said. The stock has corrected by 0.7 per cent from the listing price, she added. The correction in price is quite steep, she further said.

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She said that there are many reasons behind this negative trend including ones that impact the sector this company belongs too.

She said that CLSA has recommended a SELL on this stock with a target price of Rs 1095.

This company is facing tough competition from its peers including Jio Games, Dream 11, MPL, Paytm First. This is likely to have an impact on the company and the stocks.

She said that e-sports accounts for only 10 per cent market share in the Indian Mobile gaming segment.

She further said that out of the total revenues, 60 per cent is accounted from international markets. The company faces currency risks from the African markets along with the likelihood of changes in regulations in the North American markets.

The stock is expensive in terms of valuations.

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All these considerations have been taken into account by the CLSA in its recommendations on this stock, Dave said.

This stock achieved its 52-week high of Rs 2024.90 in March 2021.

Nazara Technologies is India based diversified gaming and sports media platform. It has presence in India and across emerging and developed global markets such as Africa and North America. Among its offerings, this company provides interactive gaming services across the board, eSports and gamified early learning ecosystems.

Market Expert Sandeep Jain said that he found Nazara Technoligies stock expensive. He said that the results have also not been good over the last 3-4 years. His advice is to remain cautious on this stock.