By Inc42 Media
Following its Q4 FY24 earnings announcement, shares of Nazara started witnessing an upward momentum; the shares jumped 14.2% overall last week
Though Nazara posted a 98% YoY decline in its net profit in Q4, certain metrics in its results were better than expected
The rally in Nazara shares came today when the broader market sentiment was also bullish as most of the exit polls projected a comfortable majority for the NDA in the Lok Sabha
Continuing last week’s rally, shares of gaming major Nazara Technologies
jumped as much as 15.3% to touch INR 809.8 during the intraday trading on the BSE on Monday (June 3).
Though the shares shed some gains, the stock ended the day 12.3% higher at INR 788.4 – a level last seen at the end of February this year.
It is pertinent to note that after gaining almost 48% in 2023, shares of Nazara started seeing a decline from mid-January this year.
Even its Q3 FY24 financial results, where the company’s net profit zoomed over 46% year-on-year (YoY), failed to provide any momentum to the stock. In fact, in mid-March, the shares were trading at a nine-month low of INR 632.
However, following its Q4 FY24 earnings announcement, shares of Nazara started witnessing an upward momentum. The shares jumped 14.2% overall last week.
Though Nazara posted a 98% decline in its net profit to INR 18 Lakh in the quarter from INR 9.4 Cr in Q4 FY23, certain metrics in its results were better than expected by analysts.
Besides, Nazara increased its stake in Nextwave Multimedia Private Limited, the developer of mobile cricket game franchise World Cricket Championship, to 100% by acquiring an additional 28.12% stake for INR 21.6 Cr.
Last week, Nazara promoter Mitter Infotech also offloaded 48.84 Lakh shares, or 6.38% stake, in the company in an on-market block deal. The shares were sold to existing backer Plutus Wealth Management.
Following the Q4 earnings, ICICI Securities said that at the current valuation, Nazara is a compelling ‘buy’. The brokerage also reiterated its price target of INR 1,080 on the stock.
Meanwhile, Amol Athawale, VP of technical research at Kotak Securities, told Inc42 last week that the sudden rally in the stock looked like a bounceback. He advised investors to wait for a confirmation and said the immediate support for the stock is around INR 650.
The rally in Nazara shares came today when the broader market sentiment was also bullish. Benchmark indices Nifty50 rallied 3.25% to 23,263.90 and Sensex gained 3.39% to touch 76,468.78 today, as most of the exit polls are projecting a comfortable majority for the Prime Minister Narendra Modi-led National Democratic Alliance (NDA) in the Lok Sabha.
The votes will be counted on Tuesday (June 4).