Buy Nazara Technologies., target price Rs 1,080: ICICI Securities

ICICI Securities has a buy call on Nazara Technologies Ltd. with a target price of Rs 1080. The current market price of Nazara Technologies Ltd. is Rs 912. Nazara Technologies., incorporated in 1999, is a Small Cap company with a market cap of Rs 7015.81 crore, operating in Services sector.

Nazara Technologies' key products/revenue segments include Income from Entertainment & Investment Business and Other Operating Revenue for the year ending 31-Mar-2024.

Financials

For the quarter ended 30-09-2024, the company has reported a Consolidated Total Income of Rs 344.25 crore, up 24.89% from last quarter Total Income of Rs 275.65 crore and up 11.21% from last year same quarter Total Income of Rs 309.54 crore. The company has reported net profit after tax of Rs 17.47 crore in the latest quarter.

Investment Rationale
ICICI Securities maintains its BUY rating on the Nazara Technologies stock with a target price of Rs 1,080. The target multiple stands at 37x FY26E EV/EBITDA (ex-minority). Key risks: 1) Increased competition/slowdown in US markets; and 2) inability to identify and integrate acquisitions.

Promoter/FII Holdings
Promoters held 10.05 per cent stake in the company as of 30-Sep-2024, while FIIs owned 9.71 per cent, DIIs 12.2 per cent.