Nazara Technologies, a prominent player in the Indian gaming sector, is drawing significant attention from market analysts. Brokerage firms are projecting substantial growth for the company's stock, citing its strategic repositioning and robust financial performance.
Brokerages Bullish on Nazara's Future
Choice Institutional Equities has reiterated its 'Buy' rating on Nazara Technologies Ltd., setting a target price of Rs 400. This target suggests an impressive upside potential of approximately 45% from its assessed market price of Rs 263. The brokerage emphasizes Nazara's evolution into a globally diversified, gaming-first platform, characterized by improving earnings quality, strong cash conversion, and rising operating leverage.
JM Financial also noted Nazara's improving core gaming execution and stronger operating leverage in Q4 FY26, despite weaker performances in eSports and Ad-tech. The firm maintains an 'ADD' rating with a March 2027 target price of Rs 300, highlighting management's increasing focus on core gaming and the expected strengthening of FY27 scale through Bluetile consolidation.
Strategic Shift Drives Profitability
A key factor underpinning the positive outlook is Nazara's strategic portfolio rationalization over recent quarters. This restructuring has led to a structurally cleaner and higher-margin business base, with gaming now accounting for roughly 90% of FY26 EBITDA. Analysts believe this shift has significantly improved the company's operating profile, making its core business more scalable and margin-accretive.
Future Growth Catalysts
- Incremental Scale: Contributions from Bluetile and BestPlay are expected to drive significant growth.
- Operational Excellence: The execution of a Centre of Excellence (COE)-led operating model is anticipated to enhance efficiency.
- IP Monetization: Deeper monetization of owned intellectual property (IP) will further support earnings visibility and sustained margin expansion.
Choice Institutional Equities believes that current valuations do not fully reflect Nazara's improving profitability profile and its long-term compounding potential, making it an attractive investment in the gaming stock segment.