Nazara Technologies' Singapore subsidiary acquires PublishME; stock jumps over 6%

Shares of Nazara Technologies, a diversified gaming and sports media platform, rose as much as 6.8 per cent, touching the day's high of Rs 879.15 apiece on Thursday, October 5.

The stock snapped the three-day losing streak. The investors showed buying interest in the stock after the company's Singapore subsidiary, NODWIN Gaming, acquired a 100 per cent stake in game marketing agency PublishME.

"The Singapore subsidiary of NODWIN Gaming, — South Asia’s leading gaming and esports media companies, a material subsidiary of Nazara Technologies Ltd, has acquired a 100 per cent stake in-game marketing agency PublishME for a sum of USD 2 mn from its existing shareholders, Nazara Technologies Limited and Ozgur Ozalp," the regulatory filing read.

The filing further said that the integration and acquisition of PublishME is poised to enhance NODWIN Gaming’s existing solution capabilities for publishers and brands alike.

As of 12:18 p.m., shares of Nazara Technologies traded 5.45 per cent higher on the BSE at Rs 868.3 apiece. The market capitalisation of the company was Rs 5,745.9 crore.

Nazara Technologies Q1 

Nazara Technologies reported a profit after tax (PAT) of Rs 20.9 crore, up 31 per cent year-on-year (YoY). The company's revenue stood at Rs 254.4 crore, up 14 per cent YoY. 

Furthermore, the company's EBITDA (earnings before interest, taxes, depreciation, and amortisation) grew 10 per cent YoY, amounting to Rs 33.1 crore.

Brokerage's views

B&K Securities has given a 'buy' call on Nazara Technologies for a target price of Rs 912 apiece.

"Nazara remains well placed to capitalise on the burgeoning Indian gaming ecosystem spending. They remain market leaders in the eSports piece and are creating an entire ecosystem of casual viewers," the brokerage said.

Analyst's view 

"Since the last 5–6 trading session, the said counter has been trading in a range of 820–845. In previous trading sessions, it has given a breakout from the mentioned zone. At the current juncture, support is placed near 840 and resistance is seen near 900 levels. On the indicator front, the RSI daily scale has reversed from 50 levels, which hints at a bullish stance in the counter," said Jigar S Patel - Senior Manager - Technical Research Analyst, Anand Rathi Shares and Stock Brokers.

Nazara Technologies share price: Historic performance 

In 2023, so far, shares of Nazara Technologies have gained over 41 per cent against the Nifty 50's rise of over 7 per cent. 

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