Nazara Technologies Stock Analysis – Should You Invest?
As per NDTV Profit, Nazara Technologies has started attracting interest from HNIs and PMS investors after a steep correction, with valuations now appearing relatively cheaper.
- Only 8% of revenue comes from India, highlighting strong global diversification.
- Well-diversified model across multiple gaming segments.
- Consistent focus on de-risking revenue streams and maintaining a balanced growth mix.
- Strong pipeline of new game launches and scaling up of existing successful games.
- Optionality from PokerBaazi with potential for global foray as per management commentary.
Our View & Investment Assessment
Nazara Technologies remains a unique listed play in the Indian gaming sector with clear global diversification, which makes its model relatively future-proof. The company has managed to scale while reducing dependency on the domestic market.
- Cheap valuations post correction – attracting smart money (HNIs, PMS).
- Diversified gaming portfolio spreads risk across segments.
- Strong international footprint with only limited exposure to India.
- Optional growth trigger through PokerBaazi’s potential global expansion.
- Gaming remains a policy-sensitive sector. Any unfavourable government stance on online gaming or betting could hurt valuations.
- Execution risk in scaling new games.
- Global diversification helps, but domestic policy shocks can still weigh on sentiment.
Final Take
We opine that Nazara Technologies is a long-term story on global front given its global reach and diversified business model. However, investors should be mindful of government regulations that could negatively impact the stock and it has happened with govt banning online games in India. High risk category stock for Retail Traders. Avoid
— Written by Indian-Share-Tips.com (SEBI Registered Advisory Services)
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