Gaming Company Nazara Technologies Stock To Plunge 41%: CLSA

Gaming Company Nazara Technologies Stock To Plunge 41%: CLSA

SUMMARY

CLSA noted that Nazara’s revenue rose in Q1 of FY22, but was 5% below its estimates

Nazara’s shares were trading at INR 1,801.40 on the National Stock Exchange (NSE)

Nazara posted a consolidated net profit of INR 5.3 Cr in the Q1 FY22

Global brokerage firm CLSA has set some alarm bells ringing with its report claiming that Nazara Technologies’s stock will plunge over 40% from current levels to INR 1,095. At the time of publishing, Nazara’s shares were trading at INR 1,801.40 on the National Stock Exchange (NSE). CLSA has handed Nazara a sell tag in its latest report. 

CLSA noted that Nazara posted a revenue of INR 130 Cr in the first quarter of FY22, which was up by 6% since Q1 FY21, but this is 5% below the brokerage firm’s estimates. It added that key businesses including esports and gamified online learning (Kiddopia) accounted for 81% of the consolidated revenue, but the company ‘missed’ the revenue estimates for Q1 FY22. 

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