Check Before You Invest : Nazara Technologies Ltd

BSE: 543280 NSE: NAZARA ISIN: INE418L01047

| Sector: IT & ITES | Industry: IT - Software

Snapshot

Q.1 Which industry/sub-sector does Nazara Technologies Ltd belong to?

Nazara Technologies Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.

Q.2 Is Nazara Technologies Ltd a good quality company?

Nazara Technologies Ltd is a weak quality company, based on a inconsistent 10-year financial track record.

Q.3 Is Nazara Technologies Ltd undervalued or overvalued?

Nazara Technologies Ltd appears Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Nazara Technologies Ltd a good buy now?

Nazara Technologies Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Nazara Technologies Ltd?

Nazara Technologies Ltd revenue growth is 47.7% for FY-2025, which is above its 5-year CAGR of -5.68%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Nazara Technologies Ltd?

Nazara Technologies Ltd Return on capital employed is 1.53% for FY-2025, which is above its 5-year historical median of -2.32%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 13.5%, indicating value preservation.

Q.3 Return on Asset of Nazara Technologies Ltd?

Nazara Technologies Ltd Return on Asset is 1.29%, which is above its 5-year historical median of -2.61%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Nazara Technologies Ltd?

Nazara Technologies Ltd Return on equity is 1.31% for FY-2025, which is above its 5-year historical median of -2.66%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Nazara Technologies Ltd?

Nazara Technologies Ltd Cash conversion cycle is 48 days, above its 5-year historical median of -2 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.02	0.02
ROE	1.31	-2.66
ROCE	1.53	-2.32
Cash Conversion Cycle	48 days	-2 days

Q.6 Gross Profit margin of Nazara Technologies Ltd?

Nazara Technologies Ltd Gross profit margin which is the profit after deduction of direct costs, is 106.7% for FY-2025, which is above its 5-year median of -80.4%, indicating increasing margins.

Q.7 Operating Profit Margin of Nazara Technologies Ltd?

Nazara Technologies Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -80.65% for FY-2025, which is in line with its 5-year median of -80.65% indicating stable margins.

Q.8 Net Profit Margin of Nazara Technologies Ltd?

Nazara Technologies Ltd Net Profit Margin is 81.46% for FY-2025, is above with its 5-year median of -104.31%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	106.7	-80.4
Operating Profit Margin	-80.65	-80.65
Net Profit Margin	81.46	-104.31

Q.9 Debt to Equity ratio of Nazara Technologies Ltd?

Nazara Technologies Ltd Debt-to-Equity ratio is 0.00, which is lower with the industry average of 0.11, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Nazara Technologies Ltd?

Nazara Technologies Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Nazara Technologies Ltd?

Promoters hold 35.46% of the Nazara Technologies Ltd, with 55.94% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Nazara Technologies Ltd vs industry peers?

Nazara Technologies Ltd revenue CAGR is -5.68%, compared to the industry median CAGR of 10.86%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	47.7	10.9
Gross Profit Growth	0	19
Operating Profit Growth	0	NAN
Net Profit Growth	0	22

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.02	0.5
ROE	1.31	5.83
ROCE	1.53	6.79
Cash Conversion Cycle (days)	48.47	47

Valuation & price assessment

Q.1 Stock return of Nazara Technologies Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of 2.93% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	2.9%	23.3%	4.8%

Q.3 Valuation ratios of Nazara Technologies Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	-	400.20	47.37
Price to Book	4.37	4.38	2.63
Price to Sales	143.55	221.98	4.79
EV to EBITDA	252.68	-105.75	16.48

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