Nazara Technologies Q2 Results Review - Capital Allocation Key To Re-Rating: Prabhudas Lilladher

"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..Prabhudas Lilladher Report.We cut our FY24E-FY26E Ebitda estimates by ~3-4%, amid persistent weakness in Kiddopia and Ad-Tech business. Despite downgrade at operating level, our FY24/25E earning per share estimates have witnessed an upgrade of 14%/6% as we raise our other income assumptions and re-align our tax rate for FY24E given write back during the quarter.Nazara’s operational performance was broadly in-line with our estimate with Ebitda margin of 9.4% (our estimate: 8.3%) while profit after tax beat was driven by tax credit of Rs 13 million (our estimate tax outgo of Rs 47 million) arising from demerging of the fantasy sports business of Halaplay into OpenPlay.Despite ongoing challenges in Ad-Tech (loss of a large client), Kiddopia (stagnant subscriber base) and Real Money Gaming (goods and services tax levy of 28% on full bet value), return of BGMI and strong traction in SportsKeeda is likely to drive sales/Ebitda compound annual growth rate of 17%/34% over FY23- FY26E. Retain ‘Hold’ rating on the stock with a discounted cash flow based target price of Rs 840 (earlier Rs 836). Post recent fund raise, Nazara has cash balance of Rs 13.3 billion (cash per share of Rs 183 on diluted equity base) and we believe capital allocation decisions from hereon will be a key to re-rating..Click on the attachment to read the full report:.Hindalco Q2 Results: Profit At Rs 2,196 Crore, Meets Estimates.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 Q2 Results Review - Capital Allocation Key To Re-Rating: Prabhudas Lilladher

Esports was a medal event at the recently concluded Asian Games.

NDTV Profit

NDTV Profit

Follow Us

DOWNLOAD THE APP

Nazara Technologies Q2 Results Review - Capital Allocation Key To Re-Rating: Prabhudas Lilladher

Esports was a medal event at the recently concluded Asian Games.

Choose a plan

Follow Us

DOWNLOAD THE APP