DINESH

Nazara Technologies

Latest CMP 393
Today's Change ▲ 1.15%
52-Week High / Low 393 | 218
Price Date: 30-Sep-2026
Recommendation Strong Sell
Target Price 383
Expected Upside -1.3%
Forecast Horizon 2 Years
Historical CAGR 9.8%
1,000 Invested 30-Mar-2021
Today's Value 1,673
Investment Period 6 Years

Stock Snapshot

Post Results Return
+18.6%
Positive Re-rating
1-Year Target Price
273
2-Year Target Price
383
52-Week High / Low
393 / 218
20-Day Return
+7.4%
Market Cap (Cr.)
14,555
Current PE
15.0
P/BV Ratio
4.2
Dividend Yield
—
Industry PE
18.1

Price Performance

Vista Outlook

Basis of our Recommendation

Nazara Technologies is navigating a significant transformation into a globally diversified gaming platform, focusing on high-margin, IP-led growth. Management's strategic emphasis on integrating acquisitions like Bluetile and BestPlay aims to enhance operational efficiency and scale revenue, despite current margin pressures from aggressive user acquisition strategies. This shift is expected to support Vista's forecast of a 54% sales CAGR through FY28, although the company faces execution risks related to cash obligations and market volatility. The gaming industry's expanding demand for digital content and improving pricing power further bolster Nazara's long-term growth prospects. However, potential market saturation and regulatory challenges remain critical watchpoints. Overall, while the outlook is cautiously optimistic, the balance sheet's conservative financing and the current valuation suggest a need for careful monitoring of execution and market dynamics over the next 12-24 months

👍 Why We Like This Stock

  • Strategic acquisitions are expected to drive significant revenue growth and operational scale
  • Management's focus on high-margin, IP-led growth enhances long-term profitability potential
  • The gaming industry's expanding demand and improving pricing power support Nazara's growth trajectory

⚠ Things To Watch Out For

  • Current margin pressures due to aggressive user acquisition spending may impact short-term profitability
  • Execution risks related to cash obligations from acquisitions could strain financial stability
  • Potential market saturation and regulatory changes pose challenges to sustained growth

Key Parameters

Balance Sheet Strength
Conservatively Financed
Market Share
Stable
Industry Outlook
Improving
Analyst View
Strong Buy
Dividend History
No Dividend History
FII Holdings
Increasing

Financial Snapshot

View Technicals Analysis →
Actuals Forecast
FY24 FY25 FY26 FY27 FY28
Revenue (Cr.) 1,138 1,624 1,829 1,789 1,990
Profit Before Tax (Cr.) 95 61 961 557 669
PBT Margin 8.3% 3.8% 52.5% 31.2% 33.6%
Net Profit (Cr.) 43 17 895 418 494
Earnings Per Share 0.7 1.1 24.5 11.1 13.3

Analyst Recommendations

Broker Recommendation Target Price Date
Prabhudas Liladhar ▲ Buy 378 07-Aug-2026
ICICI Securities ► Hold 330 27-May-2026
Choice Equity ▲ Buy 400 18-May-2026
Consensus Recommendation ▲ Strong Buy
Consensus Target 378
Coverage 3 Analysts
Analysts' Viewpoint
Nazara Technologies is leveraging acquisitions to transform its business, with a focus on scaling gaming assets like 'Big Brother' and 'The Traitors'. While aggressive user acquisition and investment in new titles are impacting short-term margins, the company anticipates significant revenue growth. Key risks include increased debt from acquisition payments and associate losses. Future catalysts include the launch of Smaaash 2.0 and the IPO process for NODWIN Gaming, which aims for substantial organic revenue growth.

Company Overview

Show Company Profile

Nazara Technologies Limited operates a gaming and sports media platform in India, Africa, the Middle East, the Asia Pacific, the United States, and internationally. It operates through gaming and other segments. The company offers subscription, download of games, and support services. It also provides interactive and online gaming, including gamified early learning ecosystems; e-sports; kids' playing center; and advertising technology ecosystems. In addition, the company owns various IPs, including World Cricket Championship, Kiddopia, Animal Jam, Classic Rummy, Openplay, Halaplay, Nazara Telco Distribution, Nodwin, NODWIN Gaming, SportsKeeda, Ultimate Teen Patti, PokerBaazi, Crash Arena Turbo Stars, King of Thieves, Curve Games, Love Island, Big Brother, Fusebox Games, Funky Monkeys, Curve Games and Smaaash, Branded, Pro Football Network, Soap Central, Datawrkz, and Space and Time. The company was incorporated in 1999 and is based in Mumbai, India with additional offices in Dubai, United Arab Emirates and Singapore.