Buy Nazara Technologies, target price Rs 898: Prabhudas Lilladher

Prabhudas Lilladher has buy call on Nazara Technologies with a target price of Rs 898. The current market price of Nazara Technologies is Rs 578.5.

Nazara Technologies, incorporated in the year 1999, is a Small Cap company (having a market cap of Rs 3831.80 Crore) operating in Services sector.

Nazara Technologies key Products/Revenue Segments include Other Operating Revenue and Income from Entertainment & Investment Business for the year ending 31-Mar-2022.


Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 326.30 Crore, up 13.69 % from last quarter Total Income of Rs 287.00 Crore and up 71.92 % from last year same quarter Total Income of Rs 189.80 Crore. Company has reported net profit after tax of Rs 22.40 Crore in latest quarter.

The company’s top management includes Mr.Vikash Mittersain, Mr.Nitish Mittersain, Mr.Rajiv Ambrish Agarwal, Mr.Kuldeep Jain, Mr.Sasha Mirchandani, Ms.Shobha Jagtiani, Mr.Probir Roy. Company has Walker Chandiok & Co. LLP as its auditors. As on 31-12-2022, the company has a total of 7 Crore shares outstanding.

Investment Rationale
The brokerage expects sales/PAT CAGR of 27%/36% respectively over FY23E-25Eand retains its BUY rating with a DCF based TP of Rs898. The stock trades atEV/Sales multiple of 2.8x/2.1x its FY23E/FY24E estimates and the brokerage maintains its positive stance on Nazara as there is huge runway for growth ahead since it operates in a sun-rise industry.