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Tamil Nadu govt approves ordinance to ban online games; Nazara Tech dips 4%

On getting the Tamil Nadu governor's approval, the ordinance would be promulgated in the state, news agency ANI reported

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Buzzing stocks | Nazara Technologies | Markets

SI Reporter  |  Mumbai 



video game

Shares of dipped 4 per cent to Rs 653.45 on the BSE in Tuesday's intra-day trade after the Tamil Nadu Cabinet, on Monday, approved an Ordinance to ban online gaming in the state. On getting the Tamil Nadu governor's approval, the ordinance would be promulgated in the state, agency ANI reported.

is primarily engaged in providing subscription/download of games/ other contents through consumer base in India and worldwide, and digital support services to group companies.

At 11:41 AM, the stock had partially recovered from its intra-day low, and was down 2.4 per cent at Rs 663.70, as compared to an unchanged in the S&P BSE Sensex. The stock had hit a 52-week low of Rs 484 on June 22, 2022, and a record high of Rs 1,677 on October 11, 2021.

However, in the past one week, has declined 10 per cent, as against 4 per cent decline in the benchmark index. Further, in the past six months, it has slipped 19 per cent, while in the past one year it has tanked 41 per cent. In comparison, the Sensex was down 0.38 per cent and 4.9 per cent, respectively, during the same period.

The gaming industry is expanding at a rapid pace across the world. Because of the widespread availability of smartphones and affordable technology, as well as rising disposable income, the industry is on the verge of taking off, and gradual penetration into previously untapped will fuel growth, allowing the industry to make a significant contribution to the economy. As the number of gamers in India grows, a convenient gaming culture will emerge.

Online gaming is going through a paradigm shift. By 2025, 500 million people are expected to be engaged in online gaming, making it the fourth largest component of the Indian media & entertainment industry.

"A variety of industries are expected to experience spectacular growth, including esports, fantasy sports, casual gaming, and other games of skill. Strong user engagement is expected for gaming event IPs, including esports leagues, national online gaming tournaments, and multigame platforms, where gaming shall be combined with social interaction and commerce," Nazara Technologies said in FY22 annual report.

Meanwhile, analysts at Jefferies have a 'buy' rating on Nazara Technologies with a price target of Rs 860 per share as it raised revenue/Ebitda estimates by 5-13 per cent to factor acquisition and stronger growth outlook for Sportskeeda, and expect Nazara to deliver 25-27 per cent CAGRs in revenues/EBITDA over FY23-26.

"Nitish Mittersain, Founder and MD of Nazara Technologies, highlighted that growth outlook for Nodwin and Sportskeeda remains strong. The recent price increases in Kiddopia and acquisition of Wildworks will help drive growth in early learning segment. While RMG remains an attractive market, Nazara is unlikely to make a big play before regulatory clarity emerges," the brokerage firm said in a stock update.


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First Published: Tue, September 27 2022. 12:04 IST

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