Nazara Technologies Q1 Results Review - Miss; Multiple Strategies, Acquistion In Foray For FY25: Dolat Capital

Dolat Capital Report

Nazara Technologies Ltd. posted revenue decline of 6.1% QoQ (our estimate -2.2%). Nodwin/ Gamified Early Learning declined 28%/3% QoQ due to higher than expenses seasonal decline/weak sub. addition, while real-money games biz. saw lower than expected growth.

FY25 promises robust growth driven by

1. Strong eSports pipeline,

2. Restructuring efforts in Kiddopia, RMG and AdTech, and

3. contribution from multiple acquisitions done in past six months. Target to achieve Rs 3 billion Ebitda by FY27 (implies 33% compound annual growth rate) is retained.

Nazara Technologies reported a miss in Q1 but outlined several actions to improve its overall performance. We raise Rev. by 3.2%/6.2%, but largely retain earnings estm. for FY25E/FY26E.

Revise to ‘Accumulate’ rating (earlier Buy) with discounted cash flow -based target price of Rs. 1,050 (implies ~45 times on FY26E earning per share), given recent run-up in price.

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