One of the Nikhil Kamath Stocks has transformed the gaming industry in India by providing a wide variety of mobile games, esports, and sports media. The stock has jumped 3.71 percent after announcing five investments of Rs. 196 crore to drive growth in gaming and entertainment.
Stock Price Movement:
With a market capitalization of Rs. 7,839.39 crores, the shares of Nazara Technologies Limited were opened at Rs. 1,030.25 per equity share, a jump to an intraday high of nearly around 3.71 percent from its previous day’s close price of Rs. 1,010.40. The stock is currently trading at Rs 1,023.15 per equity share.
What Happened:
Nazara Technologies Limited has announced investments totaling Rs. 196 crores to strengthen its gaming and entertainment portfolio. The company acquired a 60% stake in Funky Monkeys Play Centers for Rs. 43.7 crores, expanding into physical entertainment with 11 centers across India.
Further, Nazara also invested Rs. 4.2 crores for a 4.7% stake in Learntube.ai, an AI-driven educational platform.
Additionally, Nazara will invest Rs. 148 crore in existing subsidiaries, which includes Rs. 64 crore in Nodwin Gaming to enhance its growth, Rs. 69 crore to acquire 100% of Sportskeeda, and Rs. 15 crore in Datawrkz for expansion.
Strategic Acquisitions in 2024:
In 2024, Nazara Technologies Limited made several strategic acquisitions to expand its portfolio. These included purchasing a 48.42% stake in Paper Boat Apps for Rs. 300 crore and acquiring a 47.7% stake in Moonshine Technology (PokerBaazi) for Rs. 832 crore.
Other significant deals included acquiring 19.35% of Absolute Sports for Rs. 145.47 crore, 100% of NODWIN Gaming’s Freaks 4U for Rs. 271 crore, and Comic Con India for Rs. 55 crore in FY24.
Additionally, the company made other acquisitions, including a 28.12% stake in Nextwave Multimedia for Rs. 21.63 crore, Fusebox Games for Rs. 228 crore, Trinity Gaming for Rs. 24 crore, and the intellectual property rights for Ultimate Teen Patti for Rs. 10 crore.
Business Segment Performance:
Nazara Technologies Limited operates in the gaming, esports, and ad-tech sectors. In FY24, the gaming segment generated Rs. 406.5 crore, which accounted for 36% of total revenue with an EBITDA margin of 19.9%.
The esports segment, the largest contributor, brought in Rs. 631.7 crore (55% of revenue) and achieved a 10% margin. The ad-tech segment contributed Rs. 103.8 crore (9% of revenue), maintaining an EBITDA margin of 8%.
In H1 FY25, the gaming segment contributed 36% to total revenue, esports accounted for 57%, and ad-tech experienced a 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, expecting to see benefits by Q1 FY26. It will focus on enhancing products and expanding into new regions to boost user engagement and revenue.
Nazara also plans to launch Fusebox’s Big Brother game in Q1 FY26, with monetization anticipated in Q2 or Q3 FY26.
Recent Quarter Results and Ratios:
Nazara Technologies Limited increased its revenue from Rs. 297 crore in Q2 FY24 to Rs. 319 crore in Q2 FY25, a 7.41% rise. However, its net profit decreased by 33.33%, dropping from Rs. 24 crore in Q2 FY24 to Rs. 16 crore in Q2 FY25.
Over the last four years, the company grew its revenue at a compound annual growth rate (CAGR) of 25.83%, while its net profit increased at a CAGR of 52.14%.
In terms of financial ratios, the company’s return on capital employed (ROCE) stands at 5.53%, and its return on equity (ROE) is 3.42%. The company maintains a debt-to-equity ratio of 0.06x, showing it is almost debt-free. Nazara Technologies Limited’s earnings per share (EPS) is Rs. 10.4.
Company Overview:
Nazara Technologies Limited was founded in 1999 by Nitish Mittersain and is headquartered in Mumbai. The company leads the gaming and sports media platform industry. It operates across India, Africa, and North America, focusing on gaming, eSports, ad tech, and gamified early learning.
The company offers popular IPs such as Kiddopia, World Cricket Championship, and CarromClash, alongside eSports platforms like Sportskeeda and Nodwin. With a reach through 52 telcos in 58 countries, Nazara has become India’s largest listed gaming company and a pioneer in eSports and cricket simulation.
Written By – Nikhil Naik
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