Rakesh Jhunjhunwala portfolio: Experts give buy call on this tech stock

By Asit Manohar
Rakesh Jhunjhunwala portfolio: This is a first-of-its-kind company that got listed in India, which has rights over IP and assets across grassroots, regional, national, and international e-sports. Photo: Courtesy Equirus

Rakesh Jhunjhunwala portfolio: Nazara Technologies shares are one of the Rakesh Jhunjhunwala stocks that are more than 10 per cent below its 52-week high. Even after selloff pressure last week, this Big Bull-owned stock has delivered 8.50 per cent return and market experts are looking at the recent dip as buying opportunity for medium to long-term investors. They said that the company is almost debt-free and it may appreciate up to 2100 apiece breaching its current 52-week high of 2024.90 per stock levels.

Speaking on this Rakesh Jhunjhunwala stock's outlook; Rahul Sharma, Co-Founder at Equity99 said, "Nazara Technologies has reduced its debt and is almost debt-free now. Its PAT (Profit After Tax) has grown at CAGR 50 per cent over the last 3 years. During FY21 company`s debtors' days were reduced from 100 days to 55 days and also company reported the highest ever cash equivalent balance of 372 crore, which shows great liquidity. Company counts well-respected funds and individual investors as company’s investors, including IIFL, Rakesh Jhunjhunwala, and Utpal Sheth. Also, FIIs increased their stake from 6.02 per cent to 8.96 per cent on June 2021 quarter."

Echoing with Rahul Sharma's views; Santosh Meena, Head of Research at Swastika Investmart Ltd said, "Nazara Technology is a first-of-its-kind company that got listed in India, which has rights over IP and assets across grassroots, regional, national, and international e-sports. The online gaming business is expected to grow strongly and it is extremely popular amongst the millennial. The company adopts the strategy to acquire good business and merge them with their own company also give a seat to the management of Target Company in the board. This strategy has helped the company to grow at a significant pace. The company's focus on inorganic growth and favorable macro-economic and demographic drivers would lead the company to new heights along with the availability of cheap smartphones, high-speed internet, and a reduction in data prices." He said that Nazara Technologies is the only gaming company listed in India that has a scalable business model. The company has no listed player thus it will see buying attraction from the institutional investors in the near future.

Asked about the investment strategy in regard to this Rakesh Jhunjhunwala stock; Rahul Sharma of Equity99 said, "One can buy this counter for medium to long-term target of 2100 maintaining strict stop loss at 1630."

Rakesh Jhunjhunwala share holding in Nazara Technologies

As per the shareholding pattern of this tech company for April to June 2021 quarter, Big Bull holds 32,94,310 shares of this company, which is around 10.82 per cent of the net company shares.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.


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