Buy Nazara; target of Rs 390: Choice Institutional Equities

Choice Institutional Equities is bullish on Nazara has recommended buy rating on the stock with a target price of Rs 390 in its research report dated December 30, 2025.

Broker Research

December 30, 2025 / 09:57 IST

Buy

Choice Institutional Equities's report on Nazara

Based on management’s public media interactions, Key takeaways include: (1) The portfolio reset (Nodwin de-subsidiarisation; PokerBaazi and Freaks4U impairments) was undertaken to improve earnings quality and visibility, (2) Core gaming is expected to anchor growth with structurally higher EBITDA margins of 20–25%, (3) The refreshed Enter Magic brand reinforces a push toward AI-enabled, immersive experiences, with ownership of scalable global IPs viewed as the key long-term moat, (4) Management is evaluating larger, IP-led global acquisitions funded via a mix of accruals, debt and equity, (5) Centres of Excellence support scalable execution without integration risk, and (6) With >90% of revenues generated overseas, execution is centered on compounding growth via LiveOps intensity, AI-driven efficiency and new IP roll-outs.

Outlook

With improving UA efficiencies, stronger IP monetisation and widening reach across mobile and console ecosystems, the earnings profile is becoming progressively cleaner and more predictable. We reiterate our BUY rating on NAZARA, with a SOTP-based target price of INR 390.

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