Rakesh Jhunjhunwala's portfolio stock, Nazara Technologies is down 60% from its 52-week high, but the experts are bullish on the stock.

Date : 11/08/2022
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Rakesh Jhunjhunwala's portfolio stock, Nazara Technologies, looks like a good long-term bet.

Rakesh Jhunjhunwala's portfolio stock, Nazara Technologies, hit its 52-week high of Rs 1678 in October last year. Since then, the stock has been falling on the bourses. The decline in the stock has meant that the stock is available at a discount of 60% from its 52-week high. As of Monday, 08th August, it has closed at a price of Rs 661.

This decline in the stock price of the company has made the valuations reasonable. Although the current PE ratio is 122, the tech stocks like Nazara Technologies usually trade at high PE multiples. The company was founded by Nitish Mittersain, and the company went public in March last year. Rakesh Jhunwala holds 10.03% of the company, and he remains bullish on the long-term potential of the company. The company has a portfolio comprising Kiddopia, Nodwin, World Cricket Championship, SportsKeeda, Chhota Bheem Sports Racing, etc.

Nazara Technologies as a long-term bet

The company is in the fast-growing gaming sector, and the company has a dedicated team of 250+ employees operating out of India and Dubai. They are a leading India-based diversified gaming company with huge growth prospects. As per the stock market experts, the stock can go up to Rs 911 in the long term, implying a return of 38% from the current market price.

The long-term prospects look bright as per the experts, and the rise in topline of 70% in the last quarter with EBIDTA margins of 13.5% looked decent. The company is investing huge money to fund the growth initiatives of Nordwin, which is putting pressure on the stock in the short term. The unit economics of Kiddopia seem to have stabilized after taking a price hike of 13% in June this year. The monthly plan of Kiddopia at $8.99 is still at a discount from its peers, and there is a potential for further rate hikes.

The E-sports division delivered a topline growth of 11.7%. The primary division, i.e. esports, appears to be on a solid footing, and the stock is getting some support from that. From the 52-week low price of Rs 475, the stock has recovered 40% from the 52-week low. Prabhudas Lilladher has revised its targets as per the latest quarterly results, and they have a price target of Rs 911, which is an upside of 38% from the current levels. The stock looks like a good long-term bet, and the current price seems to be reasonable.

Rakesh Jhunjhunwala's portfolio stock Nazara Technologies came with an IPO last year at a price of Rs 1101. The stock went up to Rs 1678 in October last year. Since then, the stock has been down, and the current market price is Rs 661. It went down to Rs 475, and the stock price has recovered since then. At the current market price, experts are bullish on the stock in the long-term, and Prabhudas Lilladher has a price target of Rs 911 on the stock, implying an upside of 38%.

Also Read: Rakesh Jhunjhunwala stock is down by 45%. Should you invest?

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Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas.