Zerodha's Nikhil Kamath may buy 3.5% stake in Jhunjhunwala-backed Nazara Tech, says report
Nikhil Kamath was looking to buy 3.5 per cent stake in the Rekha Jhunjhunwala-backed online gaming company. Kamath has already bought about 1 per cent stake in the company, as per a media report.
- Sep 1, 2023,
- Updated Sep 1, 2023 1:43 PM IST
Shares of Nazara Technologies were trading lower in Friday's trade amid a media report suggesting Zerodha's co-founder Nikhil Kamath was looking to buy 3.5 per cent stake in the Rekha Jhunjhunwala-backed online gaming company. Kamath has already bought about 1 per cent stake in the company, CNBC TV18 reported. To be sure, the Nazara Technonologies board is scheduled to meet on September 4 to consider fund raise. It had approved a fund raise of Rs 750 crore on July 10.
Nazara's June quarter results were soft, with growth headwinds at Kiddopia, Nodwin and Datawrkz. B&K Securities in a July 31 noted said the ban on BGMI is now lifted and revenues should start coming from September quarter.
"We believe that despite the eSports headwinds, the segment will continue to grow given new IPs, new games and larger player base/casual viewer base. Profitability will be elusive. The fact remains that it is not a fad anymore, evidenced by multiple offline events. Other verticals will continue to be a mixed bag. Whilst there have been bouts of margin improvements/growth in spurts, sustenance is needed in respective areas for re-rating. The ability of Nazara to incubate and scale multiple verticals is known, and the same shall continue. We thus believe that there remains massive potential in Nazara," the brokerage in a July 31 note.
Jefferies had on July 31 cut its FY24-26 revenue/Ebitda estimates by 4-9 per cent for Nazara to factor 1Q results and weak Ad-tech segment.
"We raise our target multiples for Kiddopia and Sportskeeda to reflect better margin/growth outlook. We also increase our target multiple for Nodwin on account of better growth visibility, which takes our valuation closer to that during the recent capital raise. Over FY23-26, we expect a 21 per cent/34 per cent revenue/Ebitda CAGR for Nazara," it said while suggesting a target of Rs 810 on the stock.
On Friday, the scrip was trading at Rs 774.30 on BSE, down 0.44 per cent.
Shares of Nazara Technologies were trading lower in Friday's trade amid a media report suggesting Zerodha's co-founder Nikhil Kamath was looking to buy 3.5 per cent stake in the Rekha Jhunjhunwala-backed online gaming company. Kamath has already bought about 1 per cent stake in the company, CNBC TV18 reported. To be sure, the Nazara Technonologies board is scheduled to meet on September 4 to consider fund raise. It had approved a fund raise of Rs 750 crore on July 10.
Nazara's June quarter results were soft, with growth headwinds at Kiddopia, Nodwin and Datawrkz. B&K Securities in a July 31 noted said the ban on BGMI is now lifted and revenues should start coming from September quarter.
"We believe that despite the eSports headwinds, the segment will continue to grow given new IPs, new games and larger player base/casual viewer base. Profitability will be elusive. The fact remains that it is not a fad anymore, evidenced by multiple offline events. Other verticals will continue to be a mixed bag. Whilst there have been bouts of margin improvements/growth in spurts, sustenance is needed in respective areas for re-rating. The ability of Nazara to incubate and scale multiple verticals is known, and the same shall continue. We thus believe that there remains massive potential in Nazara," the brokerage in a July 31 note.
Jefferies had on July 31 cut its FY24-26 revenue/Ebitda estimates by 4-9 per cent for Nazara to factor 1Q results and weak Ad-tech segment.
"We raise our target multiples for Kiddopia and Sportskeeda to reflect better margin/growth outlook. We also increase our target multiple for Nodwin on account of better growth visibility, which takes our valuation closer to that during the recent capital raise. Over FY23-26, we expect a 21 per cent/34 per cent revenue/Ebitda CAGR for Nazara," it said while suggesting a target of Rs 810 on the stock.
On Friday, the scrip was trading at Rs 774.30 on BSE, down 0.44 per cent.