Nazara Technologies shares rise 4% on Q2 earnings; check details

Shares of Nazara Technologies Ltd gained 4% today after 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.

Nazara Technologies stock zoomed 4.18% percent to Rs 866.10 against the previous close of Rs 831.30 on BSE. Market cap of the firm rose to Rs 6111 crore on BSE today. The stock opened higher at Rs 850.95 on BSE. It has climbed 35.57% this year and risen 36.46% in the last one year. Total 0.15 lakh shares of the firm changed hands amounting to a turnover of Rs 1.26 crore on BSE today.

In terms of technicals, the relative strength index (RSI) of Nazara Technologies stock stands at 55, signaling it's neither trading in the overbought nor in the overbought zone.

The stock has a beta of 0.9, indicating low volatility in a year. Nazara Technologies stock is trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

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.

Jinesh Joshi – Research Analyst at Prabhudas Lilladher has a hold rating for the stock with a target price of Rs 836 post Q2 earnings. Earnings came above the estimates of Prabhudas Lilladher.

"Profitability divergence was due to tax credit arising from demerging of the fantasy sports business of Halaplay into OpenPlay. In all, there was a tax write back of Rs 13mn (Prabhudas Lilladher estimate tax outgo of Rs 47 mn) resulting in PAT beat. Nazara trades at EV/Sales multiple of 3.7x/3.1x our FY24E/FY25E sales estimates and currently we have a HOLD rating on the stock," said Joshi.

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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.

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