Rakesh Jhunjhunwala Portfolio After hitting a fresh 52-week low of Rs. 475.05 on the NSE in July 2022, shares of online gaming stock Nazara Technologies have made a strong comeback from their lows. After announcing strong Q1 results on Friday last week, Nazara Technologies share price today opened with a huge upside gap and climbed to its intraday high. 625.50 per level, a jump of over 16 per cent from Friday’s closing price 530.10 per share.
According to Share Market According to experts, the share price of Nazara Technologies is rising due to strong quarterly results announced on Friday. However, he added that the market has given a very high premium to this Q1 earnings number as most of the growth recorded by the company during the April to June 2022 quarter is on account of mergers and acquisitions by the company. He added that the Rakesh Jhunjhunwala-backed online gaming company still lags behind its organic numbers. Hence, profit-booking is widely awaited and the stock may see limited upside from here.
Speaking on the reason for the rise in share price of Nazra Technologies today, Avinash Gorakshakar, Head of Research, Profitmart Securities said, “The stock is rising doi thanks to the strong Q1 numbers announced by the company on Friday. However, such a rise in the stock. This is unexpected as there is still no organic growth in the quarterly results announced on July 29, 2022. Most of the growth in the company has come from mergers and acquisitions undertaken by the company during the recently ended quarter. Hence, profit-booking in the counter is widely is awaited and one should wait for few more quarters and enter only when its organic growth is back on track.”
Echoing the views of Avinash Gorakshakar, Sumeet Bagadiya, Executive Director, Choice Broking said, “This online gaming stock has bounced from lower levels and has a strong support zone. from 525 550 per level. it can go up from 650 670 each level. Hence, one must wait for some correction in the stock as it has already climbed over 16 per cent today.”
Since October 2021, the Rakesh Jhunjhunwala-backed stock has been in the heat of selling and has hit a 52-week low. 475.05 per share last week.
Rakesh Jhunjhunwala Shareholding
As per the shareholding pattern of Nazra Technologies for the quarter April to June 2022, Big Bull Rakesh Jhunjhunwala holds 65,88,620 shares, which is 10.03 per cent of the total paid-up capital of the company.
Nazra Technologies Q1 Results
As on 29th July 2022, Nazara Technologies reports over 22 per cent growth in Consolidated Net Profit 16.50 crore in Q1FY22. This was possible due to the increase in revenue of the company by about 70 per cent in the same period.
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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