Buy Nazara Technologies; target of Rs 804: Prabhudas Lilladher

Prabhudas Lilladher is bullish on Nazara Technologies has recommended buy rating on the stock with a target price of Rs 804 in its research report dated May 10, 2023.

Broker Research

May 13, 2023 / 15:09 IST

Buy

26 Aug, 2025 12:21

Volume

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Prabhudas Lilladher's research report on Nazara Technologies

We cut our FY24E/FY25E EPS estimates by 7%/9% amid 1) ban on real money games (RMG) in TN (region contributes ~20% to RMG’s top-line) 2) loss of client in Ad-Tech segment and 3) continued margin pressure in the Nodwin business. While there are near term headwinds we believe benefits of price hike taken in Kiddopia will be evident in FY24E & beyond, as new subscribers come on board while ongoing investment in creating new IPs within Nodwin business (Playground/Valorant/Kingfisher India Premiership etc) can result in non-linear EBITDA growth over time. Further, Nazara has cash balance of Rs6.2bn which can act as growth capital to expand inorganically.

Outlook

Overall, we expect sales/PAT CAGR of 27%/50% respectively over FY23-25E and retain our BUY rating with a DCF based TP of Rs804 (earlier Rs872).

For all recommendations report, click here