MarketsMOJO Downgrades Nazara Technologies to 'Sell' Due to Poor Financial Performance.

MarketsMOJO has recently downgraded its stock call on Nazara Technologies to 'Sell' due to several factors. The company's results for the quarter ending in June 2024 were flat, with a ROCE (HY) of 6.17%, the lowest in recent years. Additionally, the PBT LESS OI (Q) has fallen by -12.1% to Rs 8.46 crore. The DEBTORS TURNOVER RATIO (HY) is also at its lowest at 4.14 times.

With a ROE of 4.4, the company's valuation is considered expensive with a 3.6 Price to Book Value. However, the stock is currently trading at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 15.34%, but its profits have only risen by 82.4%, resulting in a PEG ratio of 1.4.

In the last year, Nazara Technologies has underperformed the market, generating a return of 15.34% compared to the market's (BSE 500) return of 31.79%. The company also has a low Debt to Equity ratio (avg) of 0 times, indicating a healthy financial position.

On the positive side, the company has shown healthy long-term growth with an annual growth rate of 31.83% in Net Sales and 185.70% in Operating profit. However, the technical trend for the stock is currently sideways, with no clear price momentum. The technical trend has deteriorated from Mildly Bullish on 04-Nov-24 and has generated -1.56% returns since then. The stock's RSI and Bollinger Band technical factors are also sideways.

It is worth noting that Nazara Technologies has a high institutional holding of 21.92%. These investors have better capability and resources to analyze the fundamentals of companies, making their opinion on the stock's performance significant. Overall, MarketsMOJO's downgrade to 'Sell' for Nazara Technologies is based on the company's recent financial performance and technical trend.