Analysts at global brokerage Jefferies met Nitish Mittarsain, Founder and MD, Nazra Technologies, who highlighted that the growth outlook for NodeWin and Sportskeeda remains strong. The recent price increase in Kidopia and the acquisition of WildWorks will help accelerate growth in the early education segment.
“While RMG remains an attractive market, Nazara Tech is unlikely to make a big game before regulatory clarity emerges,” the note said. Jefferies raises its estimates by 5-13% and maintains its buy rating nazara tech share with a revised target price of 860 per (from 780 ago) because it believes the company is ‘taking the right steps’. The tech stock is down about 37% so far this year.
Management highlighted that since acquiring Nodwin, they have attempted to diversify Nodwin from just an e-sports event management firm, into a company that runs gaming engagement. It has also offered content creation around eSports (Playground) and accessories (Planet Superhero, Brandscale) through its recent acquisitions. Nodwin’s balance sheet is still over 400m cash which will be used to take these initiatives forward, it was highlighted.
“Nazara acquired a 100% stake in WildWorks for $10 million meaning 0.8x EV/sale. WildWorks is a game developer catering to kids aged 8-12 with the flagship IP of ‘Animal Jam’. Nazara plans to revive growth by increasing spending on user acquisition and driving content updates. The acquisition will add US$12m in revenue to Nazara and help strengthen Nazara’s presence in the Gamefied Learning segment in the US,” said Jefferies.
The brokerage house believes that Nazara Tech is a different play on the gaming ecosystem, offering strong growth prospects across various gaming segments, geographies and revenue streams and eSports segment driven by strong picks in gaming in India and Gamified Increases prices in learning. To support customer acquisition.
It sees higher-than-expected revenue growth, particularly in early education and eSports, improved unit economics in early education, successful acquisitions, and easing of regulations in real money gaming as key catalysts.
The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
catch all business News, market news, today’s fresh news events and breaking news Updates on Live Mint. download mint news app To get daily market updates.