Nazara Technologies shares rebound 67% from 52-week low; can they hit four-digit mark?

Shares of Nazara Technologies Ltd have risen 67% from their 52-week low in last nine months. Nazara Technologies stock fell to a yearly low of Rs 481.95 on March 20, 2023. It ended 0.91% higher at Rs 804.50 in the previous session, delivering 67.16% gains during the period. Nazara Technologies stock zoomed to an intraday high of Rs 810.55 Tuesday against the previous close of Rs 797.25 on BSE. Market cap of the firm rose to Rs 5,898.35 crore on BSE today.

Earlier, the stock opened higher at Rs 804.95 on BSE. It has climbed 31% this year and risen 35.51% in the last one year. Total 0.11 lakh shares of the firm changed hands amounting to a turnover of Rs 87.70 crore on BSE in the previous session.

In terms of technicals, the relative strength index (RSI) of Nazara Technologies stock stands at 50.8, signaling it's neither trading in the overbought nor in the oversold zone.

The stock has a beta of 0.2, indicating very low volatility in a year. Nazara Technologies stock is trading higher than the 5 day, 20 day, 100 day and 200 day moving averages.

Aditya Gaggar Director of Progressive Shares said," In August, the stock had given a breakout from the Cup and Handle formation despite being in the primary downtrend. In today's trade as well it has given a breakout from another continuation pattern known as Bullish Flag and Pole Formation. Looking at the indicators, MACD is all set to give a positive crossover while a reading of 33.83 in ADX indicates the presence of a strong uptrend. As per the Flag and Pole formation, the target is Rs 1070."

Shiju Koothupalakkal - Technical Research Analyst, Prabhudas Lilladher said, "The stock has indicated a big bullish candle pattern on the daily chart to give a breakout above the falling trendline zone at Rs 830 level to improve the bias and anticipate for further rise in the coming days. The RSI also has witnessed a steep rise to confirm a trend reversal signaling a buy. Keeping the stop loss of Rs 825 one buy the stock for an upside target of Rs 895-905 levels in the coming days with the chart looking attractive."

Abhijeet from Tips2trades said,"Nazara Technologies is slightly bullish on the Daily charts with strong resistance at Rs 836. A daily close above this resistance could lead to target of Rs 865 in the near term. Support will be at Rs 805."

ICICI Securities has maintained its buy call on the stock.

“We maintain our BUY rating on Nazara, with target price of Rs 1,080. Our target multiple stands at 38x 1-yr forward EV/EBITDA (ex-minority). Key risks: 1) Impact due to increased competition/ slowdown in US markets, and 2) inability to identify and integrate acquisitions,” said the brokerage.

The gaming firm reported a 53% rise in consolidated net profit to Rs 24.2 crore in Q2 from Rs 15.77 crore in the September 2022 quarter. Revenue from operations climbed 13% year-on-year to Rs 297.2 crore in July-September against Rs 263.8 crore.

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) climbed 30 percent to Rs 27.9 crore in Q2 against Rs 21.4 crore in Q2FY23.

The gaming firm reported a 53% rise in consolidated net profit to Rs 24.2 crore in Q2 from Rs 15.77 crore in the September 2022 quarter. Revenue from operations climbed 13% year-on-year to Rs 297.2 crore in July-September against Rs 263.8 crore.

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) climbed 30 percent to Rs 27.9 crore in Q2 against Rs 21.4 crore in Q2FY23.

In the first half of FY24, Nazara logged a 42 percent year-on-year (YoY) rise in profit after tax to Rs 45 crore against Rs 31.7 crore profit in H1FY23. Revenue from operations climbed 13 percent to Rs 551.7 crore against Rs 486.9 crore in H1FY23.

Nazara Technologies is an India-based gaming and sports media platform known for its games on World Cricket Championship, Chhota Bheem and Motu Patlu series.

Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as an investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.

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