Nazara Technologies share price dips 4% as Tamil Nadu promulgates ordinance to regulate online gambling
Nazara Technologies is in the business of providing subscription/download of games/ other content through consumer base in India and worldwide, and digital support services to group companies.
Nazara Technologies share price dipped nearly 4 per cent to Rs 653.45 per share on the BSE intraday during Tuesday's trading session after the Tamil Nadu Cabinet approved an ordinance to regulate online gambling in the state
As per news agency PTI report, “The Tamil Nadu Cabinet on Monday gave its nod to promulgate an ordinance to regulate online gambling. The meeting chaired by Chief Minister MK Stalin took the decision after final touches were given to the draft ordinance.”
“The School Education Department provided the feedback after conducting a survey from the public via e-mail and holding a consultation with stakeholders. The draft ordinance was prepared on August 29, 2022 based on the opinion from the Law Department,” the release said.
Nazara Technologies is in the business of providing subscription/download of games/ other content through consumer base in India and worldwide, and digital support services to group companies.
The stock at around 02:00 PM is trading over 2 per cent lower to Rs 665.5 per share, as compared to a 0.42 per cent rise in the S&P BSE Sensex. According to BSE data, the counter 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.
The stock in the last five sessions has slumped almost 10 per cent, while it has slipped over 3 per cent in the past one year on the BSE.
“We raise our FY23-25E revenue estimates by 11-16% as we integrate WildWorks numbers. Our EBITDA margin estimates however decline marginally by 30-90bps due to incremental investments in WildWorks and lower margin profile of recent Nodwin’s acquisitions,” JM Financial said in its report.
The brokerage has also raised target multiple for Nazara’s RMG business to 5x (from 2x) to reflect improved outlook after Google’s move, however, have lowered target multiple for eSports (6x EV/Sales from 6.5x) given regulatory uncertainty.
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06:53 PM IST