Rakesh Jhunjhunwala stock: Nazara Technologies rallies 5%, still at half of record high price; should you buy?
Rakesh Jhunjhunwala’s portfolio stock Nazara Technologies rallied over 5 per cent to day’s high of Rs 1,691.80 apiece on Thursday, after the firm said that it will invest $2.5 million in BITKRAFT Funds. Despite a 5% jump, the stock is still 50 per cent down from its record high of Rs 3,354.40 apiece, touched in October last year. Nazara Technologies, a subsidiary of gaming player Nazara Pte Ltd (Nazara Singapore), said in a BSE filing that it will invest $0.875 million upfront while the balance investment amount of $1.625 million will be deployed over a period of three years. BITKRAFT Funds is a firm that invests in gaming, esports, and interactive media.
Nazara Technologies has witnessed a significant amount of correction over the past few weeks amid selling pressure across global markets, weak investor sentiments and high valuations. Analysts say that despite that, it has witnessed some good buying interest today after the firm decided to invest $2.5 million in BITKRAFT Funds. “It has witnessed decent growth in PAT, revenue and has posted strong growth in its e-sports segment the previous quarter. With no listed competitors in this space, this move can turn out to be beneficial over the medium term,” Likhita Chepa, Senior Research Analyst, CapitalVia Global Research, told FinancialExpress.com. Chepa added that technically, the stock is trading near its support level and hence investors can add this stock to their portfolio at current levels.
In the traded volume terms, a total of 22,000 stocks of Nazara Technologies traded on BSE, while 2.14 lakh scrips exchanged hands on NSE, so far in the trade. Earlier this month, Vodafone Idea, which has tie-ups with several leading over-the-top (OTT) platforms, marked its foray into the online gaming market through a partnership with Nazara Technologies.
Nazara Technologies had also invested in Griffin Gaming Partners (Griffin) Fund II, and will become a Limited Partner in the Fund. Nazara Dubai is a Limited partner in Griffin Gaming Partners Fund II, L.P for a capital commitment not exceeding $4 million (Rs 30 crores), payable in cash, in one or more tranches. It is to be noted that Nazara Dubai will invest up to $1.34 million (Rs 10 crores) upfront while the rest of $2.66 million (Rs 20 crores) will be deployed over a period of three years.