Shares of Rakesh Jhunjhunwala-backed Nazara Technologies gained more than six per cent in Monday’s intraday trade on the bonus record date. The stock of the online mobile gaming company, which has announced a share split in 1: 1 ratio, has been trading ex-bonus since June 24.
“It is hereby informed that the Board of Directors of the Company has fixed Monday, June 27, 2022, as the Record Date, for the purpose of ascertaining the eligibility of shareholders for issuance of Bonus Equity Shares of the Company in the proportion of one new fully paid-up equity shares of Rs 4/- each for every One fully paid up an existing equity share of Rs 4/- each held,” Nazara Tech had said in an exchange filing.
Earlier, the counter rallied 20% in BSE intraday trade on June 24.
On Monday, shares rose 6.6% to Rs 663.85 per share in intraday trade on the BSE.
Billionaire investor Rakesh Jhunjhunwala holds 10.1 % stake, aggregating to 3,294,310 shares of the gaming company as of March 2022.
Prabhudas Lilladher: Buy | Target price: Rs 1813
Earlier, brokerage house Prabhudas Lilladher upgraded the target price of the stock. The brokerage firm retained a buy rating with a target price of RS 1813. The target was given on a CMP of Rs 1044
“Overall, we have increased our EPS estimates by 2-3% and expect sales/PAT CAGR of 35%/54% respectively over FY22-24E. Though growth challenge in Kiddopia persists, Esports is likely to emerge as key growth lever as TV broadcasting during prime time will help increase viewership and popularity multi-fold in future. Retain BUY with a DCF based TP of Rs1,813 (earlier Rs1,747),” the brokerage said.
On Monday’s opening price of Rs 644.95 per share, the upside in the stock from current levels is seen at more than 180%.
The bonus shares are additional shares given by the company to its existing shareholders as “bonus” when they are not in the position to pay a dividend to its shareholders despite earning decent profits for that quarter.