Shares of Nazara Technologies rose more than 1 percent in early trade on November 9, post registering an impressive 53.3 percent jump in Q2 net profit to Rs 24.2 crores. At 10:52 am, the Nazara Tech stock was trading at Rs 851.21 on the NSE.
Nazara Technologies on November 8 reported a net profit of Rs 24.2 crore for the quarter ended September 31, 2023, registering a 53.3 percent jump from Rs 15.77 crore profit in the year-ago quarter, led by strong performance in its gaming and esports segments.
Revenue from operations was at Rs 297.2 crore for the quarter, up 12.7 percent from Rs 263.8 crore in the corresponding quarter last year.
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Nazara Technologies currently operates in three key sectors - gaming (World Cricket Championship, Kiddopia, Animal Jam, Classic Rummy etc), esports (Nodwin Gaming, Sportskeeda) and advertising (Datawrkz).
During the quarter, Nazara Technologies raised Rs 510 crore from SBI Mutual Fund and Zerodha co-founder Nikhil Kamath, as the diversified gaming and sports media company looks to build a warchest for potential acquisitions to grow its existing businesses. The company has shareholder approval to raise up to Rs 750 crore.
Also Read: Nazara Tech Q2 results: Net profit jumps 53.3% to Rs 24.2 crore, revenue up 13%
"Our strategic focus remains strong as we lay a robust foundation not only for the remainder of FY24 but also for FY25. With a consolidated cash position around Rs 1,300 crore, Nazara is exceptionally well-positioned to seize acquisition opportunities and expedite our growth in the years ahead," said Nazara Technologies founder Nitish Mittersain.
Last month, the firm also unveiled a new game publishing division, Nazara Publishing, to publish games made by Indian developers across the world and also partner with global developers to localise and bring these games to India.
Nazara Technologies plans to launch up to 20 games across mobile, web3, virtual reality (VR) and personal computer (PC) over the next 18 months and invest a minimum of Rs 1 crore a game.
"We recognize the substantial 'Make in India' potential within the gaming industry, where Indian developers have the opportunity to create top-tier games for both the domestic and international markets" Mittersain said.
Nazara Technologies stock call: Check brokerage views and target price
The brokerage firm Prabhudas Lilladher has assigned the 'hold' rating to the Nazara Technologies stock with a target price of Rs 836 in the first cut research report released after the results. Research Analyst, Jinesh Joshi at Prabhudas further stated in the report that, "the profit after tax (PAT) for Nazara Technologies was driven by tax write backs."
Nazara Technologies stock performance
The Nazara Technologies stock has given a return of 42.68 percent over the last six months. The benchmark Nifty50 index has given a return of 6.45 percent over the same duration.
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