Nazara Tech shares zoom 10% as ICICI Pru MF raises stake in gaming company

Shares of Nazara Technologies – a diversified gaming and sports media platform - zoomed as much as 10 per cent to hit the day’s high level of Rs 580 apiece on the BSE during Friday’s trading session.

The buying interest in the stock can be attributed to ICICI Pru MF's stake increase in the online gaming company to 5.11 per cent from 4.91 per cent earlier.

At around 11:25 AM, Nazara Tech stock was trading near its day’s high level at Rs 581 per share, up Rs 49 or 9.21 per cent as compared to Thursday's closing of Rs 532 apiece on the BSE.

The counter has breached Zee Business research analyst’s target of Rs 545 per share with a stop loss of Rs 522 per share before the market open today.

At the current market price, Nazara Technologies stock is available at nearly 63 per cent discount from its life-high level of Rs 1,601 apiece touched in October 2021. This is months after it made a bumper stock market debut in March 2021.

The counter has a 52-week high-low range of Rs 807.5 and Rs 481.95 per share on the BSE.

In the last one year, the counter has corrected more than 25 per cent as compared to over a per cen rise in the Nifty50, while it dropped by five per cent against three per cent fall in the benchmark index year-to-date.

Nazara Technologies is a Rekha Jhunjhunwala – a well-known stock market investor – portfolio stock.

She holds about a 10 per cent stake or 65,88,620 equity shares in the gaming company, according to the March 2023 shareholding pattern available on the exchanges.

Domestic brokerage firm ICICI Securities had recommended to ‘buy’ Nazara Tech shares and sees a bull case valuation of Rs 800 apiece target for March 2024 in case key triggers of growth play out.

The brokerage had said the company could benefit from inexpensive acquisition opportunities in the current liquidity situation. It added that the company shows the visibility of strong revenue growth in eSports and gradual profitability improvement in gamified early learning (GEL).

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(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)