Shares of mobile gaming and sports media platform Nazara Technologies gained for the third straight session on September 12 after Google announced a one-year “limited time” pilot for daily fantasy sports (DFS) apps and online rummy games in India.
At 11.36 am, the stock was up 6.1 percent, quoting Rs 780.5 apiece on the NSE. It was also among the most active stocks in the first hour of trade with volumes of 3,891,566.
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“From September 28, 2022 through September 28, 2023, Google Play will run a limited-time application-only pilot to allow DFS and rummy apps by developers incorporated in India to be distributed to users on Google Play in India,” Google said on September 8.
According to the company’s management, “It is great for everyone in the skill-based real money gaming ecosystem and long overdue from Google.”
Nazara Technologies’ real-money gaming portfolio includes fantasy sports platform Halaplay and skill gaming platform OpenPlay. The segment accounted for about 6 percent of the company’s revenues in Q1-FY23.
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Speaking to CNBC-TV18, Nitish Mittersain, Founder of Nazara Tech, said, “Acquisition costs will be lower and that is going to help us. Fantasy sports and online rummy are classified as ‘game of skill’ by Supreme Court and skill-based gaming contributes 80 percent of total gaming market in India.”
This has a large opportunity in India. Thus, more clarity on goods and services tax front, which might come in a couple of months, would be helpful, he added.
On August 30, Nazara bought kids’ interactive entertainment firm WildWorks for $ 10.4 million in an all-cash deal, marking the company’s first acquisition in the US.
Brokerage firm Prabhudas Lilladher is bullish on the stock and has recommended “buy” rating with a target price of Rs 1,031.
From a trading perspective, Rajesh Palviya of Axis Securities said, “On the daily and weekly time frame, the stock has confirmed the short term trend reversal forming a higher tops and bottoms formation. Investors should buy, hold and accumulate this stock with an expected upside of Rs 850-920 with downside support zone of Rs 720-660 levels.”
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