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Nazara Technologies is India’s first and only listed digital gaming company. The segment has great potential due to falling internet data plans, shifting entertainment patterns and favourable demographics. Nazara has a portfolio approach to scaling up its business and is not dependent on any one game / application. It has adopted a partnership approach to M&A and provides access to new products and markets. We have an over weight rating as we expect Nazara to scale its operations in a secular manner for many years and that perhaps justifies its expensive valuations. The company has great operating leverage and strong balance sheet ang growth capital. Competition is intense in this industry but so is the opportunity to creatively grow through new games and geographical expansion – 09-08-2021 Price: 1729.65 Rating: Over Weight Recommendation: Buy

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