Wednesday, 17 March 2021

Nazara Technologies Ltd IPO

 


Nazara Technologies is present in the fast growing segment of interactive gaming, eSports and gamified early learning solutions. After registering a degrowth of 1.4% in FY2019 the company has posted strong revenue growth of 45.9% in FY2020 to Rs. 247.5 Cr. The company has already posted a revenue of Rs. 200 Cr. in H1FY2021. The company has been reporting losses as they have increased their spending significantly on advertising & promotion from FY2020 onwards which will help drive strong topline growth for the company. At current levels the stock is trading at EV/Sales of 11.6XFY20 revenues and we recommend a "SUBSCRIBE" rating to the IPO given strong growth potential for the company.

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