This stock held by Rakesh Jhunjhunwala rose 10% in two sessions, here's why

Nazara Technologies share rose nearly 4% today after global brokerage Jefferies gave a buy call to the ace investor Rakesh Jhunjhunwala backed stock.  At the end of June quarter, Jhunjhunwala held 10.82% stake or 32.94 lakh shares in the gaming platform.

The share has risen 10% in two sessions on the back of positive outlook from Jefferies  which is the first global research house to recommend a 'buy' on the stock. On August 26, the stock ended 6.43% higher on BSE.

Nazara Technologies share rose 3.85% to Rs 1,751 today against previous close of Rs 1,686.75 on BSE.

Total 8,174 shares changed hands amounting to turnover of Rs 1.40 crore on BSE.

Market cap of the firm rose to Rs 5,207 crore.

Jefferies has an upside scenario price target of Rs 2,300 apiece and a downside scenario price target of Rs 1,400 on the Nazara Tech share.

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However, CLSA, the only other foreign brokerage to rate the stock, suggests a 'sell'.

"Nazara gives a direct solution to play the gaming ecosystem as it's constructing a community of gaming corporations by way of M&A that profit from one another. Its presence within the rapidly-growing gamified early studying market in US, cell gaming and eSports market in India, may drive 28%/46% CAGR in revenues/EBITDA in FY21-26E, by our estimates," Jefferies said.

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"The sharp acceleration in development of the acquired corporations post-acquisition is a mirrored image of Nazara's potential to understand synergies. Nazara can be centered on worthwhile development. Its capital effectivity is clear from cumulative capital elevating of lower than Rs 200 crore since inception. Nazara has Rs 490 crore as of Mach 21. Nazara goals to steadiness development with profitability, even for its acquired companies, as a way to restrict money burn," added the brokerage.

The firm made a strong market debut on March 30, 2021.

Nazara Technologies share listed at Rs 1,971, a 79 per cent premium over its issue price of Rs 1,101 per share on the BSE. In a similar trend, the stock opened 80.74 per cent higher at Rs 1,990 on the National Stock Exchange (NSE). The India-based sports media platform became the first gaming company to be listed on the stock exchanges.

Later, the share closed over 44% higher after clocking a stellar market debut. The stock ended 44.60% higher against the issue price of Rs 1,101 on NSE. Market cap of the firm rose to Rs 4,848 crore.

The firm is India-based gaming and sports media platform and known for its games on World Cricket Championship, Chhota Bheem and Motu Patlu series.