Gaming and media company Nazara Technologies, backed by Rakesh Jhunjhunwala, saw an increase of 2% in share prices on Friday. The company is currently trading at Rs. 1,729 per share.
According to analysts at Jefferies brokerage firm, 95% of the company’s value comes from its subsidiaries. The brokerage firm gave a ‘buy’ rating for the company.
On March 30, Nazara Technologies was listed on BSE. Since then the company’s share prices rose by 55% from its IPO price of Rs. 1,101 per share.
“Nazara offers a direct way to play the gaming ecosystem as it is building a network of gaming companies via M&A that benefit from each other. Its presence in the rapidly-growing gamified early learning market in the US, mobile gaming and eSports market in India could drive 28%/46% CAGR in revenues/EBITDA in FY21-26E, by our estimates,” Jefferies said in a statement on August 25.
“The sharp acceleration in the growth of the acquired companies post-acquisition is a reflection of Nazara’s ability to realize synergies. Nazara is also focused on profitable growth. Its capital efficiency is evident from the cumulative capital raising of fewer than Rs2bn since inception.” the firm further added.
Stock trader Rakesh Jhunjhunwala holds a 10.82% stake in the company. In the quarter ended in June, the company reported a net profit of Rs. 13.6 crore as against Rs. 21.7 crores in the last year.