Nazara Tech Hits Upper Circuit As Shares Zoom 20%, Paytm Also Soars Over 10%

Rakesh Jhunjhunwala-backed gaming startup Nazara Technologies’ shares hit the upper circuit of 20% on the BSE on Monday (August 1), closing finally at INR 636.15.

Shares of Nazara opened higher at INR 566 and then rallied to INR 636.15. 

The surge in share prices comes on the back of the startup reporting strong financial results for the first quarter of financial year 2022-23 (FY23). Its consolidated profit after tax (PAT) grew 22% year-on-year (YoY) to INR 16.5 Cr.

Operating revenue also soared 70% to INR 223.1 Cr in Q1 FY23 from INR 131.2 Cr reported in Q1 FY22.

Despite the surge in share prices, Nazara is still nowhere close to its all-time high of INR 1,677.20 it reached in October last year. The slump has wiped off more than 62% of investors’ wealth in the last nine months.

At the end of day’s trading, Nazara’s market capitalisation stood at INR 4,177.25 Cr.

Meanwhile, shares of One97 Communications, the parent company of fintech major Paytm, also surged more than 10% on the BSE to settle at INR 745. The stock opened at INR 706.65, and then soared to an intraday high of INR 751.85. 

Last week, Paytm CEO and MD Vijay Shekhar Sharma, in a letter to the shareholders, said that the startup would achieve operational profitability by quarter ending September 2023.

July turned out to be a better month for the fintech player which has been battered by market volatility. In the course of the last one month, Paytm shares have zoomed more than 13% from INR 657.30 at the beginning of July to the current levels. 

After nearly a month of negative market sentiment wreaking havoc on its shares, PB Fintech, the parent company of fintech player Policybazaar, also made some major gains on Monday. Its shares surged 7.4% on the BSE to close at INR 502.80.

Shares of beauty ecommerce platform Nykaa rose 1.38% to end the day at INR 1,415.85.

Meanwhile, Zomato continued its downward spiral, falling 1.07% on the BSE to INR 46.35  per share, while shares of logistics platform Delhivery also declined 0.76% to INR 630.35.

Overall, BSE Sensex rose 0.95% to 58,115, while Nifty50 zoomed 1.06% to 17,340 on Monday.

Note: We at Inc42 take our ethics very seriously. More information about it can be found here.