Quote on Nazara Tech IPO By Jyoti Roy, Angel Broking
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Below are Quote on Nazara Tech IPO By Mr. Jyoti Roy - DVP- Equity Strategist, Angel Broking Ltd
“Nazara Technologies Ltd. is the leading India based diversified gaming and sports media platform with presence in India and across emerging and developed global markets such as Africa and North America, and offerings across the interactive gaming, eSports and gamified early learning ecosystems including World Cricket Championship (WCC) and CarromClash in mobile games, Kiddopia in gamified early learning, Nodwin and Sportskeeda in eSports and eSports media, Halaplay and Qunami in skill-based, fantasy and trivia games. Nazara Technologies is present in the fast growing segment of interactive gaming, eSports and gamified early learning solutions. After posting a degrowth of 1.4% in FY2019 the company has posted strong revenue growth of 45.9% in FY2020 to `247.5 cr. The company has already posted a revenue of `200 cr. in H1FY2021. The company has been reporting losses as they have increased their spending significantly on advertising & promotion from FY2020 onwards which will help drive strong topline growth for the company. advertising & promotion expenses which accounted for 16% of the company's revenues in FY2019 has increased sharply to 53.7% of revenues in FY2020 and 59.7% of revenues in 6MFY2021. At current levels the stock is trading at EV/Sales of 11.6xFY20 revenues and we recommend a "SUBSCRIBE" rating to the IPO given strong growth potential for the company considering the vast potential offered by the gaming industry.”
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