Buy Nazara; target of Rs 390: Choice Institutional Equities

Choice Institutional Equities's report on Nazara

We remain constructive on NAZARA as the core growth engine strengthens and the portfolio resets to a cleaner base following the de-subsidiarisation of Nodwin and the one-off impairments on Freaks4U and PokerBaazi. The company’s renewed brand identity, anchored in deeper interactive entertainment and IP-led experiences, aligns well with its expanding global footprint and enhances longterm franchise positioning. With improving user acquisition efficiencies, stronger IP monetisation and widening reach across mobile and console ecosystems, the earnings profile is becoming progressively cleaner and more predictable.

Outlook

We value NAZARA on a SOTP basis (Table below), arriving at a TP of INR 390 up from INR 350 and retain our BUY rating.