Rakesh Jhunjhunwala’s portfolio: Experts see big upside in this tech stock

Portfolio of Rakesh Jhunjhunwala: Shares of Nazara Technologies remained in the block building phase after hitting a 52-week high in October 2021. The stock hit a 52-week low in June 2022, but after that it rebounded strongly , registering a rise of around 40% from its 52-week low in almost two months.

According to market experts, this Rakesh Jhunjhunwala stock should come out of its long consolidation phase and can go up to 911 levels each long term. Nazara Technologies stock price today is around 672 per share, which means experts are expecting around 35% upside for this tech stock.

Speaking on the fundamentals likely to fuel Nazara Technologies’ share price rise over the long term, Jinesh Joshi, Research Analyst at Prabhudas Lilladher, said, “Nazara has released a decent set of numbers with a solid number of 7.9% higher business and a 13.5% EBITDA margin which was partially impacted by continued investments to fund Nodwin’s growth initiatives. Nonetheless, the highlight was the stabilization of the unit economy ( LTV/CAC of 2x) from Kiddopia after a 13% price hike in June We believe there is additional wiggle room as Kiddopia’s monthly subscription plan of US$8.99 is still discounted In addition, even on the esports front, performance has been encouraging with 11.7% sequential revenue growth despite the seasonality effect (typically more events occur). accumulated nt in 2H).” However, the market expert argued that the scaling of the Freemium business remains below average while the RMG segment is under the web of regulatory uncertainty limiting further investment, albeit temporarily.

On why Nazara Technologies’ stock price has skyrocketed in recent sessions, Sonam Srivastava, Founder of Wright Research, said, “Gaming company Nazara Technologies has released impressive Q1 numbers. in FY22, which has led to a sharp rise in the share price over the past two years. of weeks. The stock’s revenue growth was 70% over the same period a year earlier, and the stock price rose 35% in just a few sessions based on this news.” She said said the company’s main revenue drivers are esports and gaming-based learning, while the company has begun to move into ad tech, freemium and real-money gaming. core revenue are on a solid footing while other verticals are growing slowly.

Nazara Technologies share price target

Tagging this stock in Rakesh Jhunjhunwala’s portfolio with the “buy” tag, Jinesh Joshi of Prabhudas Lilladher said, “We have increased our sales estimates by 2%/6% for FY23/24 respectively as we refine our assumptions for esports and DataWrkz Overall, we expect a CAGR of Revenue/PAT of 39%/58% respectively in FY22-24E and believe the growth story remains intact, as Nazara’s gaming portfolio approach not only diversifies unforeseen risks (Apple’s privacy policy or regulatory uncertainty surrounding RMG), but also inorganically creates additional growth levers. As a result, we maintain our BUY rating. with a TP based on the DCF of 911.”

Ownership of Rakesh Jhunjhunwala

According to Nazara Technologies shareholding pattern for the April to June 2022 quarter, Big Bull Rakesh Jhunjhunwala owns 65,88,620 shares or 10.03% of the company’s share capital.

Disclaimer: The opinions and recommendations made above are those of individual analysts or brokerage firms, and not of Mint.

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