Synopsis: Nazara Technologies witnessed major block deal activity as a large shareholder pared stake while institutional and strategic investors, including Zerodha Broking, stepped in with sizable purchases.
The shares of this small cap company majorly engaged in offering interactive gaming, eSports and gamified early learning ecosystems were in focus after Nikhil Kamath’s Zerodha picked up stake in the company.
With the market capitalization of Rs. 11,053 Crores, the shares of Nazara Technologies Ltd were trading at around Rs. 298 per share which is 18 percent discount from its 52 weeks high of Rs. 363 per share and is trading at a P/E of 11.4 whereas industry P/E stands at 20.2
About the deal:
Nazara Technologies saw heavy bulk deal activity with multiple investors participating in large transactions. Mitter Infotech LLP sold around 1.92 crore shares at Rs. 266 per share, taking the transaction value to nearly Rs. 511.95 crore. On the buying side, Axana Estates LLP acquired around 1.47 crore shares at the same price of Rs. 266 per share, amounting to around Rs. 392.9 crore.
Meanwhile, Zerodha Broking, backed by Nikhil Kamath, purchased 35 lakh shares at Rs. 265.85 per share, translating into a deal value of nearly Rs. 93.05 crore. The combined buying value of Axana Estates LLP and Zerodha Broking stood at about Rs. 484 crore, making it one of the notable bulk deal activities in the stock recently
About the Company and Financials:
Nazara Technologies Ltd is India’s only listed gaming and esports focused company, founded in 1999 by Nitish Mittersain. The company operates across mobile gaming, esports, sports media and gamified learning, with a presence in India as well as global markets including North America, Africa and the Middle East. Nazara owns and operates several well-known brands and platforms such as Nodwin Gaming, Sportskeeda, Kiddopia, World Cricket Championship, Animal Jam and Datawrkz.
Over the years, the company has expanded through strategic acquisitions and investments across gaming, media and ad-tech businesses.The company is known for building a diversified gaming ecosystem rather than depending on a single segment. Its business spans esports tournaments, gaming content, mobile game publishing, early learning apps and digital advertising technology.
Year on Year analysis: Revenue from operations decreased from Rs. 520 Crores to Rs. 398 Crores, down 23 percent. Operating profit has increased from Rs. 29 Crores to Rs. 44 Crores, up 51 percent and net profit has increased from Rs. 4 Crores to Rs. 56 Crores, up 1300 percent
Quarter on Quarter analysis: Revenue from operations has decreased from Rs. 406 Crores to Rs. 398 Crores, down 2 percent. Operating profit has decreased from Rs. 68 Crores to Rs. 44 Crores, down 35 percent and net profit has increased from Rs. 9 Crores to Rs. 56 Crores, up 522 percent
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The post Nazara Technologies Stock Sees Big Bulk Deal as Nikhil Kamath’s Zerodha Broking Picks Up Stake appeared first on Trade Brains.