#Nazara Tech is a very small company in the whole gaming sector but opportunity size is huge !!
#Roblox is trading at 40+ times FY-20 sales while clocking losses on operational and net level.
If the same happens in Nazara, Valuations can overstretch to unimaginable levels.
#Roblox is trading at 40+ times FY-20 sales while clocking losses on operational and net level.
If the same happens in Nazara, Valuations can overstretch to unimaginable levels.
Global gaming market size is close to 158 Billion US$ while India is holding merely 1% market share globally.
Online gaming industry is expected to grow at a CAGR of 30-40%+ for next many years which brings an exciting opportunity to players like #Nazara.
Online gaming industry is expected to grow at a CAGR of 30-40%+ for next many years which brings an exciting opportunity to players like #Nazara.
Nazara is very well diversified and can be divided into 5 segments :
- Gamified early learning - Paper boat (Kidoppia)
- eSports - Nodwin gaming, Absolute Sports
- Freemium - Next wave multimedia
- Real money gaming - Halaplay
- Telco subscription
- Gamified early learning - Paper boat (Kidoppia)
- eSports - Nodwin gaming, Absolute Sports
- Freemium - Next wave multimedia
- Real money gaming - Halaplay
- Telco subscription
Nazara acquired Nodwin gaming and Halaplay in last 3 years only.
Nodwin gaming can be a huge revenue generator for the company going forward as the focus will be on eSports.
Halaplay is a sports fantasy game & can command greater valuations seeing the peers (Dream11, MPL)
Nodwin gaming can be a huge revenue generator for the company going forward as the focus will be on eSports.
Halaplay is a sports fantasy game & can command greater valuations seeing the peers (Dream11, MPL)
Financial Highlights :
In FY-20, the company clocked revenues of 247.5 Cr. INR and EBITDA loss of 55 Cr. INR.
In H1-FY21, the company did sales of 200+ Cr. INR with EBITDA of 6.1 Cr.
This jump in revenue was due to acquisition of Kidoppia in FY-20.
In FY-20, the company clocked revenues of 247.5 Cr. INR and EBITDA loss of 55 Cr. INR.
In H1-FY21, the company did sales of 200+ Cr. INR with EBITDA of 6.1 Cr.
This jump in revenue was due to acquisition of Kidoppia in FY-20.
In FY-20, the major cost was "Advertising and promotion" which constituted of 53% of total revenues.
ASP cost was at 132.9 Cr. INR agains Revenues of 247.5 Cr. INR.
Cash flow from operating activities in FY-20 : (2.2 Cr.) INR.
Cash & Cash equivalents : 72.1 Cr. INR
ASP cost was at 132.9 Cr. INR agains Revenues of 247.5 Cr. INR.
Cash flow from operating activities in FY-20 : (2.2 Cr.) INR.
Cash & Cash equivalents : 72.1 Cr. INR
Conclusion : If we see the opportunity size, it's pretty huge and India is an under-penetrated market in a globally under-penetrated industry.
It all depends on the management because this business demands lots innovation with time.
At listing valuations, it's fairly priced.
It all depends on the management because this business demands lots innovation with time.
At listing valuations, it's fairly priced.
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