This article is more than 1 month old.

CLSA initiates coverage on Nazara Technologies with a sell call; places target below issue price of Rs 1,101

Mini

Nazara Technologies stock is under pressure after CLSA initiated coverage with a ‘sell’ call. CLSA has put the target price at Rs 1,095 which is much lower than the current stock price and is also lower than the issue price of Rs 1,101 per share. The stock tumbled as much as 12 percent in intra-day deals.

Nazara Technologies stock is under pressure after CLSA initiated coverage with a ‘sell’ call. CLSA has put the target price at Rs 1,095 which is much lower than the current stock price and is also lower than the issue price of Rs 1,101 per share. The stock tumbled as much as 12 percent in intra-day deals.
According to CLSA, the valuation is expensive at 6x FY23 EV to sales and 29x EV to EBITDA. It also said that the valuation is at a 10-75 percent premium compared to global gaming peers.
READ MORE
CLSA also believes that the eSports segment, which accounts for 37 percent of Nazara’s revenue is likely to come under pressure on the back of intensified competition led by JioGames, Dream11, MPL, and Paytm First Games.
In other developments, the firm announced its first acquisition post the IPO. The firm has signed a binding term sheet to acquire a majority stake in Arrakis Tanitim Organizasyon Pazarlama (Publishme) for Rs 20 crore. In other developments, the firm announced its first acquisition post the IPO. The firm has signed a binding term sheet to acquire a majority stake in Arrakis Tanitim Organizasyon Pazarlama (Publishme) for Rs 20 crore.
Nazara Technologies became the first Indian gaming company to go public, with the launch of its initial public offering (IPO) on March 17. The IPO got a good response, with the Rs 583 crore offer being subscribed 175.46 times.
For more details, watch the video.

Market Movers

CompanyPriceChng%Chng
CompanyPriceChng%Chng
CompanyPriceChng%Chng
CompanyPriceChng%Chng

Currency

CompanyPriceChng%Chng
Dollar-Rupee74.3400-0.0700-0.09
Euro-Rupee88.35500.16200.18
Pound-Rupee103.32200.03800.04
Rupee-100 Yen0.68060.00190.28