Nazara Technologies - Diversified Play Into Indian Gaming Ecosystem: ICICI Securities Initiates Coverage

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .ICICI Securities Report.We initiate coverage on Nazara Technologies Ltd. on a positive note, given visibility of strong revenue growth in eSports and gradual profitability improvement in gamified early learning. The stock has corrected ~70% from its peak (of Rs 1,601) and is now trading at its all-time low of Rs 486. At current market price, it is trading at 45 times one-year forward price/earning. We estimate ~37% YoY revenue growth in FY24E, led by ~45%YoY in eSports and ~25%YoY growth in GEL. We estimate Ebitda growth of ~86% YoY in FY24E led by Ebitda margin improvement of ~250 basis points YoY as eSports IPs scale up and GEL profitability improves due subscriber additions and price increases. Nazara has Rs 6.6 billion in cash (additional Rs 40 million in SVB). We believe this could be used to acquire scale through acquisition in real money gaming, once regulatory clarity emerges. Also, Nazara could benefit from inexpensive acquisition opportunities in the current liquidity situation. In case these triggers play out, we see a bull case valuation of Rs 800 (for March 2024). In case growth slows or margin improvements do not play out, we see a bear case valuation of Rs 400 (for March 2024)..Click on the attachment to read the full report:.Phoenix Mills - Riding The Consumption Wave: Motilal Oswal Initiates Coverage.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Nazara Technologies - Diversified Play Into Indian Gaming Ecosystem: ICICI Securities Initiates Coverage

The stock has corrected ~70% from its peak (of Rs 1,601) and is now trading at its all-time low of Rs 486.

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