Small Cap Gaming Stock That Can Soar 38%, ICICI Securities Recommends Buy

ICICI Securities is upbeat on small cap gaming stock, Nazara Technologies Ltd and assigned buy call with target price of Rs 700 apiece. Current market price of the stock is Rs 507.05 apiece on BSE. If you buy Nazara Technologies share now, you can get potential 38% return. Check details below:

Nazara Technologies Ltd Stock Performance & Return: Current market price of Nazara Technologies Ltd is Rs 507.05 apiece on BSE. Its 52-week high price is Rs 925.00 apiece and 52-week low price is Rs 481.95 apiece, respectively. The stock gave negative return of 43% in last 1-year and negative return again of 31% in last 6-months.

Nazara Technologies Ltd Valuation: According to ICICI Securities, "We initiate coverage on Nazara Technologies with BUY rating, given visibility of strong revenue growth in eSports and gradual profitability improvement in gamified early learning (GEL). The stock has corrected ~70% from its peak (of Rs1,601) and is now trading at its all-time low of Rs486. At current market price, it is trading at 45x 1-year forward P/E. We have a target price of Rs700 on the stock for Mar'24. Our target multiple is 41x FY25E EPS (1.5SD below the 2-year average historical P/E). At current valuations, we believe riskreward skew is compelling (3.7:1)."

Nazara Technologies Ltd About: Nazara is a leading diversified gaming & sports media platform with presence in India, Africa and North America. The company has offerings across the interactive gaming, eSports, ad-tech and gamified early learning ecosystems including World Cricket Championship (WCC) and CarromClash in mobile games, Kiddopia in gamified early learning, Nodwin, PublishMe and Sportskeeda in eSports and eSports media, OpenPlay, Halaplay and Qunami in skill-based, fantasy and trivia games, and Datawrkz in digital ad tech, according to its official website.

Disclaimer: The stock has been picked from the brokerage report of ICICI Securities. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.