This stock has transformed the gaming landscape in India by offering a diverse range of mobile games, esports, and sports media. The stock is in focus after acquiring a 100% stake in Trinity Gaming for an investment of Rs. 24 crore.
Stock Price Movement:
With a market capitalization of Rs. 7,722.29 crores, the shares of Nazara Technologies Limited were opened at Rs. 1,026 per equity share, down nearly around 1.17 percent from its previous day’s close price of Rs. 1,020.85. The stock is currently trading at Rs 1,008.90 per equity share.
What Happened:
NODWIN Gaming, a subsidiary of Nazara Technologies, has acquired Trinity Gaming, a leading gaming agency and content platform, for Rs. 24 crore.
This acquisition strengthens NODWIN’s position in India’s gaming ecosystem, expanding its influence in the youth entertainment and esports sectors.
The deal includes Rs. 4.8 crore in cash and Rs. 19.2 crore through an equity swap of NODWIN shares. Trinity’s founders will become NODWIN shareholders and continue managing operations, ensuring seamless integration and future growth opportunities.
Strategic Acquisitions in 2024:
In 2024, Nazara Technologies Limited expanded its portfolio with strategic acquisitions, including a 48.42% stake in Paper Boat Apps for Rs. 300 crore and 47.7% in Moonshine Technology (PokerBaazi) for Rs. 832 crore.
Key deals also included Rs. 145.47 crore for 19.35% of Absolute Sports, Rs. 271 crore for NODWIN Gaming’s Freaks 4U, and Rs. 55 crore for Comic Con India in FY24.
Other acquisitions included Rs. 21.63 crore for 28.12% in Nextwave Multimedia, Rs. 228 crore for Fusebox Games, and Rs. 10 crore for Ultimate Teen Patti’s IP rights.
Business Segment Performance:
Nazara Technologies Limited operates across gaming, esports, and ad-tech segments. Gaming contributes Rs. 406.5 crore (36% of total revenue) with a 19.9% EBITDA margin in FY24.
Esports, the largest segment, contributes Rs. 631.7 crore (55% of revenue) with a 10% margin. Ad-tech adds Rs. 103.8 crore (9% of revenue), maintaining an 8% EBITDA margin in FY24.
In H1 FY25, the gaming segment contributed 36% of revenues, the esports segment accounted for 57% of revenues, and the ad-tech segment achieved 7% year-on-year revenue growth by focusing on higher-margin opportunities.
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Future Growth Initiatives:
The company plans to launch new IP partnerships for Kiddopia, targeting benefits in Q1 FY26, while focusing on product enhancements and geographic expansion to boost user engagement and revenue.
Additionally, Fusebox’s Big Brother game launch is set for Q1 FY26, with monetization expected in Q2 or Q3 FY26.
Recent quarter results and ratios:
Nazara Technologies Limited’s revenue has increased from Rs. 297 crore in Q2 FY24 to Rs. 319 crore in Q2 FY25, which has grown by 7.41 percent. The net profit of Nazara Technologies Limited has gone down by 33.33 percent, from Rs. 24 crore in Q2 FY24 to Rs. 16 crore in Q2 FY25.
Nazara Technologies Limited’s revenue and net profit have grown at a CAGR of 25.83 percent and 52.14 percent, respectively, over the last four years.
In terms of return ratios, the company’s ROCE and ROE should be 5.53 percent and 3.42 percent, respectively. The debt-to-equity ratio of the company is to be 0.06x, which shows the company is almost debt-free. Nazara Technologies Limited’s EPS is to be Rs. 10.4.
Company Overview:
Nazara Technologies Limited was founded in 1999 by Nitish Mittersain and headquartered in Mumbai and is a leading gaming and sports media platform. With a presence in India, Africa, and North America, the company operates across gaming, eSports, ad tech, and gamified early learning.
The company offers popular IPs like Kiddopia, World Cricket Championship, and CarromClash, alongside platforms like Sportskeeda and Nodwin for eSports. With a strong global reach through 52 telcos in 58 countries, Nazara has established itself as India’s largest listed gaming company and a pioneer in eSports and cricket simulation.
Written By – Nikhil Naik
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