Tag: clsa

Shares of Nazara Technologies tanked 12 percent to Rs 1,463.75 on the BSE in intra-day trade today(18th June 2021), amid heavy volumes, after the foreign brokerage firm CLSA initiated coverage on the stock with a Sell rating and target price of Rs 1,095, citing hefty premium valuation. The stock was trading close to its 52-week low level of Rs 1,412.50 hit on April 12, 2021. It had hit a high of Rs 2,026.90 on its stock market debut day, March 30, 2021. Nazara Technologies is an Indian gaming and sports media platform with a presence in India, North America, Africa, and the Middle East. Its product portfolio includes offerings across interactive gaming, eSports, and gamified early learning ecosystems like World Cricket Championship & Carrom Clash in mobile games, Kiddopia in gamified early learning, Nodwin & Sportskeeda in eSports and eSports media, and Halaplay and Qunami in skill-based, fantasy, and trivia games. Read more

CLSA sees a lot of value in large-cap banks like Axis Bank, State Bank of India, and ICICI Bank, in spite of the 60-90% surge in their stocks since September 2020. "We see a dual benign credit cycle play out both for corporate and retail loans from FY22, and our top picks are key beneficiaries as 70% of their provisioning in the past five years was due to high corporate stress," said CLSA. The brokerage said the dual benign credit cycle for both corporate and retail loans continues to play out and the reversing rate cycle is positive for banks' net interest margins. CLSA said its analysis on what's priced in indicates that the current share prices imply long term return on equity of 13.5-14% for ICICI Bank and Axis bank and 10% for SBI. This is 2.5% lower for Axis Bank and ICICI Bank and 3% lower for SBI versus its long-term return on equity expectations.