Choice Institutional Equities has just released a fresh look at Nazara, highlighting how the company’s recent changes could shape its future earnings.
Key Takeaways
- Portfolio reset: Nazara has sold its Nodwin subsidiary and written down losses on PokerBaazi and Freaks4U to clean up earnings.
- Higher margins: The core gaming business is expected to deliver EBITDA margins of 20‑25%.
- Enter Magic brand: A new focus on AI‑driven, immersive games and ownership of global game IPs is seen as a long‑term advantage.
- Potential acquisitions: Management is looking at big IP‑based deals, using a mix of cash, debt and equity.
- Execution model: “Centres of Excellence” will run new projects without the risk of merging companies.
- Global revenue base: Over 90% of sales come from overseas, driven by live‑ops, AI efficiency and new IP launches.
Outlook for Investors
Improved user‑acquisition efficiency, stronger monetisation of game IPs and expanding reach across mobile and console platforms are making Nazara’s earnings more predictable. The analysts keep a BUY rating and set a target price of ₹390 per share.
Remember, this is perspective, not a prediction. Do your own research before making any investment decisions.