At a Glance
Nazara Technologies is the PUBG lobby of Indian stocks: everyone’s hyped, few survive. With a market cap ₹11,742 Cr and P/E touching a dizzy 188×, it’s priced like a metaverse unicorn. Net profit is ₹51 Cr (FY25), revenue ₹1,624 Cr, margins a flat 7%. ROE? Just 2.6%—the corporate equivalent of a noob camper. Yet, the stock doubled in 3 years. Is it the next big gaming empire, or just a laggy server waiting to crash?
Introduction
Nazara sits at the crossroads of gaming, eSports, and gamified learning—buzzwords investors love more than coffee. From owning Sportskeeda to Nodwin to kiddie learning apps, it has built an ecosystem of revenue streams. But here’s the catch: profits barely move while valuations skyrocket. This article strips the hype, levels up the facts, and decides whether Nazara is a cheat code—or a crash screen.
Business Model (WTF Do They Even Do?)
Nazara is an India-based diversified gaming and sports media platform, with exposure in mobile games (WCC, CarromClash), early learning (Kiddopia), eSports (Nodwin), and skill gaming (Halaplay). Revenue is global—India, Africa, US. Unlike pure-play gaming firms, it’s a holding company of many IPs and subsidiaries. Light roast: it’s the Netflix of gaming… if Netflix kept buffering.
Financials Overview
- Revenue FY25: ₹1,624 Cr
- Net Profit: ₹51 Cr
- EPS: ₹8.6
- Market Cap: ₹11,742 Cr
- P/E: 188×
- ROE/ROCE: 2.6% / 3%
- Debt: ₹219 Cr (low D/E)
Numbers say: Great top-line growth (5Y sales CAGR 46%), pathetic profitability (OPM 7%), and astronomical valuations. The stock price rally is pure belief.
Valuation
- P/E Approach
Peer media/tech companies trade at ~30×. Fair price = 30×8.6 ≈ ₹258. - EV/EBITDA
EBITDA FY25 ~₹114 Cr; fair EV/EBITDA ~15× → EV ₹1,710 Cr → market cap fair ₹1,700 Cr → per share ₹195. - DCF/Relative
Aggressive DCF assumes high growth, giving ₹400–₹500/share.
Fair Value Range: ₹200–₹500 vs. current ₹1,339. You’re paying 3–6× intrinsic value.
What’s Cooking – News, Triggers, Drama
- Acquisition spree: stakes in Moonshine Tech, GetStan, Curve Digital (UK).
- eSports expansion: Nodwin scaling tournaments; Sportskeeda hitting traffic milestones.
- QIP possibilities? None yet, but funding through debt rising.
- Promoter stake: down to 8.3%—control is evaporating faster than coins in Mario.
Balance Sheet
| Item | ₹ Cr |
|---|---|
| Total Assets | 4,435 |
| Equity | 2,863 |
| Borrowings | 219 |
| Other Liabilities | 1,354 |
Auditor quip: Almost debt-free but liabilities are creeping. Equity diluted via multiple rounds. Promoters are nearly out.
Cash Flow – Sab Number Game Hai
| Year | Operating | Investing | Financing | Net Cash |
|---|---|---|---|---|
| 2023 | 8 Cr | –89 Cr | 15 Cr | –66 Cr |
| 2024 | 91 Cr | –612 Cr | 946 Cr | +425 Cr |
| 2025 | 66 Cr | –1,134 Cr | 805 Cr | –264 Cr |
Operating cash is weak, investing is a money pit (acquisitions), financing keeps balance afloat.
Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROE | 2.6% |
| ROCE | 3% |
| P/E | 188× |
| PAT Margin | 3% |
| D/E | 0.07 |
Stand-up line: These ratios scream “growth stock”—but the “growth” is only in share price, not returns.
P&L Breakdown – Show Me the Money
| Year | Revenue | EBITDA | PAT |
|---|---|---|---|
| 2023 | 1,091 Cr | 102 Cr | 61 Cr |
| 2024 | 1,138 Cr | 99 Cr | 75 Cr |
| 2025 | 1,624 Cr | 114 Cr | 51 Cr |
Revenue up, PAT down. Profitability is volatile due to other income swings.
Peer Comparison
| Peer | Revenue | PAT | P/E |
|---|---|---|---|
| Nazara | 1,624 Cr | 51 Cr | 188× |
| 7Seas | 14 Cr | 1.7 Cr | 98× |
| Bodhi Tree | 89 Cr | 4.9 Cr | 29× |
Peers are small, but all trade at frothy multiples. Nazara leads in size, lags in returns.
Miscellaneous – Shareholding, Promoters
Promoters hold only 8.3%, down from 19% in 2022. FIIs stable at 13%, DIIs at 10%, public majority 69%.
Promoter roast: This is now an “institution-owned” play—founders cashed out, you’re holding the controller.
EduInvesting Verdict™
Nazara is a case study in hype vs. fundamentals. The company sits at the center of India’s gaming evolution, with IPs, eSports, and global subsidiaries. However, returns are low, cash flow strained, and promoter confidence (stake) fading. Valuation at 188× is unjustifiable by any traditional metric.
SWOT Snapshot:
- Strengths: Gaming IP portfolio, eSports leadership, global reach.
- Weaknesses: Thin margins, low ROE, dependence on acquisitions.
- Opportunities: India gaming boom, monetization of eSports, Web3 tie-ins.
- Threats: Regulatory risks, competition, investor sentiment flips.
Conclusion: Nazara is priced like it’s the next Tencent, but earnings say otherwise. Unless profitability improves sharply, current investors are playing an expensive game of chance. Long-term only for those who believe in India’s gaming revolution—others might just hit “Exit Game.”
Written by EduInvesting Team | August 1, 2025
SEO Tags: Nazara Technologies, Indian Gaming Stocks, eSports India, High P/E stocks, Nazara analysis
