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Shares of ace investor Rakesh Jhunjhunwala-backed Nazara Technologies hit a record low of Rs 1,181.55, down 7 per cent on the BSE in Wednesday’s intra-day trade. The stock was trading lower for the seventh straight day, having slipped 24 per cent during the period.
In the past one month, the market price of Nazara Technologies has tanked 29 per cent, as compared to a 8 per cent decline in the S&P BSE Sensex. It was trading close to its initial public offer (IPO) price of Rs 1,101 per share.
Nazara Technologies had made a stock market debut on March 30, 2021. With the recent fall, the stock has corrected 65 per cent from its 52-week as well as record high level of Rs 3,354 touched on October 11, 2021.
As on March 31, 2022, Rakesh Jhunjhunwala held a 10.10 per cent stake in Nazara Technologies, shareholding pattern data shows.
The board of the company is scheduled to meet on Friday, May 13, 2022 to consider audited financial results for the quarter and year ended March 2022. The board will also consider a proposal for issuance of bonus shares.
For Q4FY22, Dolat Capital expects a 0.5 per cent quarter-on-quarter (qoq) de-growth for the company as eSports segment returns to a normal quarter (Q3 is seasonally strong). It expects EBIT margins to improve by 27 bps, supported by normalization in profitability in GEL on (accounting impact normalisation).
Further, guidance for FY23 (40 per cent- 50 per cent), key performance metrics around main businesses are notable moniterables, the brokerage said in a quarterly preview.
In the October-December quarter (Q3FY22), Nazara Technologies had reported 460 bps contraction in consolidated earnings before interest, taxes, depreciation, and amortization (ebitda) margin to 16.3 per cent from 20.9 per cent in Q3FY21.
The company’s consolidated profit after tax had declined 17 per cent year on year (YoY) to Rs 14.8 crore, due to higher operational cost. Revenue from operations, however, grew 42 per cent YoY to Rs 186 crore.
Nazara is an India based diversified gaming and sports media platform with a presence in India and across emerging and developed global markets such as Africa and North America, with offerings across the interactive gaming, Esports and gamified early learning ecosystems.
The company owns some of the most recognizable IP such as World Cricket Championship, Kiddopia in gamified early learning, NODWIN and Sportskeeda in Esports and Esports media, and Halaplay, Qunami and OpenPlay in skill-based, fantasy and trivia games.
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