Shares of Nazara Technologies Ltd. rose nearly 15%, extending the gains posted after the Rakesh Jhunjhunwala-backed gaming platform reported a threefold jump in net profit in the first quarter of this fiscal.
The company, on Friday, had reported net profit worth Rs 16.5 crore in the quarter ended June, up 237% sequentially. Its revenue also increased 27% to Rs 223.1 crore, while Ebitda doubled to Rs 30.1 crore.
That triggered a rally in the company's stock. It had gained 20% on Monday and remained locked at the upper circuit as of closing of trade. On Tuesday, the scrip built on its gains as it rose 14.6% to an intraday high of Rs 729.5 apiece, before closing 10.4% higher.
The stock has been gaining for four straight sessions, up more than 40% during the period.
Of the 10 analysts tracking the company, seven maintain a 'buy' and one suggests a 'hold' and two recommend a 'sell', according to Bloomberg data. The 12-month consensus price target implies an upside of 12.7%.
Since the earnings, six analysts reiterated 'buy'. Jefferies upgraded the stock to 'buy' from 'hold' and raised target price to Rs 780 from Rs 675, an implied upside of 9.4%.
The trading volume was nearly 19 times the 30-day average. The Relative Strength Index was 71, suggesting the stock may be 'overbought'.
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