Nazara Technologies, one of Rakesh Jhunjhunwala’s largest stock bets is suffering. The stock is down 21% year-to-date and 45% over its October 2021 high. However, analysts believe this is just an aberration and that the “Warren Buffett of India,” as he’s known, should see his stocks climb back up as the year progresses.
“Nazara’s stock price has seen pressures from both macro factors like selloff in tech and micro factors like stagnating growth in existing verticals,” said B&K Securities. “However, we believe this is one of the better names in the tech space. The disruption shall be transitory. The stock price reflects excessive pessimism. We believe that the same shall turn around with sustained execution.”
Nazara’s consolidated profit fell 17% in December, but revenues were up 42.48%, which beat analysts’ estimates.
Considering the massive growth of gaming and esports in India, particularly on the mobile side, Nazara should see its numbers come back to earth. Rising smartphone usage, affordable internet data, and improving payment ecosystem should continue to support the growth of India’s gaming sector.
(All information was provided by The Economic Times)