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Top 4 Gambling Stocks In India To Add To Your Watchlist


Nazara Technologies is India’s leading diverse gaming and sports media platform.

After the Covid-19 outbreak, we’ve all seen how successful the gaming industry is.

Last year, the gaming business overtook both film and sports as the main source of revenue in the entertainment industry.

In fact, the gambling business is worth $ 162.3 billion worldwide by 2020. It is projected to reach a value of nearly $ 300 billion over the next five years.

The gaming industry in India is currently worth $ 930 million and is estimated to grow at 41% annually.

A KPMG report said the number of online players in India has increased from nearly 250 million players in 2018 to about 400 million by mid-2020. Growing steadily for the past five years, it is expected to triple its value to reach $ 3.9 billion by 2025.

The growing desire for virtual entertainment among friends, family and peer groups, along with the growth of influence encouraging Indians to play more games, has driven the gaming boom.

Nowadays, conscious investors are also looking for specialized investment opportunities in the market.

For those interested in the gaming industry, here is a list of India’s top 4 stocks with the fastest growth momentum.

1. Nazara Technologies

There are no prizes in guessing the first stock on this list. You might think of this company when you open this article.

Nazara Technologies is a leading India -based diverse gaming and sports media platform with a presence in India and across emerging and emerging global markets such as Africa and North America.

It offers interactive games, eSports, and a demonstrated early learning ecosystem.

India’s leading mobile entertainment platform now has over 100 million monthly active users.

Over the past few quarters, Nazara Technologies -backed Rakesh Jhunjhunwala has entered into various M&A (merger and acquisition) deals.

Their network includes Nodwin Gaming (an ESports company), Nextwave Multimedia (Makers of WCC – the cricket game franchise), SportsKeeda (an ESports content destination), Halaplay (fantasy sports), Qunami (a quiz app) and Nazara Digital (the most rapidly growing.operating in 100+ countries).

In the latest development, telco Vodafone Idea (Vi), announced the launch of ‘Vi Games’ on Vi Apps, in collaboration with Nazara Technologies.

The partnership will enhance the gaming experience offered by both companies to its users through Vi Games.

According to the latest shareholding pattern, Rakesh Jhunjhunwala holds 3.3 million Nazara shares, which is 10.1% of the company’s total issued paid -up capital.

For the most recent quarter, the company recorded a 17% decline in consolidated profit after tax to Rs 14.8 crore.

However, for the nine months ended December 31, 2021, the company recorded a more than four -fold jump in the consolidated PAT at Rs 42.8 crore, from Rs 9.4 crore in the previous year period.

2. Zensar Technologies

Zensar Technologies is a leading digital solutions and technology services company. It is part of an RPG group based in Mumbai and headquartered in Pune.

It operates in two segments: Application Management Services and Infrastructure management services.

It focuses on industry verticals, such as high technology and manufacturing, consumer services and banking, financial services and insurance. They have offices located in India, USA, UK, Europe and Africa.

Back in 2016, the company created a Game Testing Center of Excellence specifically aimed at helping gaming companies reap the benefits of speed, efficiency in line with its testing and development goals.

It provides testing services tailored specifically to address the unique challenges faced by the gaming industry. These include security, speed, faster gameplay, overall user experience and so on.

The stock has provided a lucrative return of 37% to its shareholders over the past one year.

3. Delta Corp

Another gambling company backed by Rakesh Jhunjhunwala, Delta Corp, is one of the largest companies in India and they are the only listed company in casino gambling with 2,000+ live gambling positions.

They have managed to capture 55% market share in the organized casino market and it has three main business areas – casino, online gaming, hospitality.

In 2016, it acquired Gaussian Networks and entered India’s booming online gambling business.

Gaussian Networks, which once owned Adda52.com is one of the largest poker websites in India. Another website ‘Adda52rummy.com’ offers online Rummy games.

In the December 2021 quarter, the company’s board of directors approved the appointment of advisers, bankers and other intermediaries by its subsidiary Gaussian Networks (GNPL), which is involved in the online gaming business to explore the potential of public issuances and equity stock listings.

The initial public offering (IPO) may be through an offer for sale (OFS) of GNPL equity shares to enable it to pool resources for its business expansion and unlock value for the company’s shareholders.

Over the past one year, the company has provided an excellent return of 95% to its investors.

4. OnMobile Global

OnMobile is an Indian telecommunications company, headquartered in Bangalore.

It offers products such as videos, tones, games and contests. Based on current usage, OnMobile has over 100 million active subscribers and an addressable base of more than 1.7 billion mobile users across multiple geographies.

The company’s emerging mobile gaming platform, ONMO is a breakthrough B2C cloud gaming platform. It hosts 1,000 seconds of the best short games selected stacked from several popular casual games.

ONMO is built on three major mobile gaming trends (eSports, Social and Short Form Games) and two disruptive technologies (AI and Cloud Streaming).

The company has also acquired a 100% stake in the artificial intelligence (AI) company rob0.

Should you invest in gaming stocks?

In recent years, video games have grown in popularity and accessibility.

The video game business is a multi-billion dollar industry that shows no signs of slowing down. As more people join the video game craze, the pressure on manufacturers to meet demand while maintaining high quality requirements for the final product is increasing.

The industry’s huge reliance on third -party developers raises concerns about the uncertainty of whether they will be able to meet demand until it can find a solution to the problem or not.

In addition, supply chain issues related to the latest gaming consoles have affected sales.

A game console is a highly specialized computer system designed to allow one or more users to play computer games. It is usually used in conjunction with televisions or other types of display devices.

Popular gaming consoles in India are PS4, Xbox, Nintendo, Nxtpower, etc.

However, the video game business is thriving, and growth is expected to continue for years to come as new technologies push the industry to grow further.

This is what Aditya Vora, Research Analyst at Equitymaster, wrote in one of her recent editorials:

Game addiction in India has only just begun. We haven’t seen anything yet.

Disney channel coverage is down 88% from 2014 levels.

Nickelodeon coverage is down 75% from 2014 levels.

However, E-sports which is an electronic sports audience, has overtaken the major sports leagues. The growth in electronic sports is evidenced by the massive increase in prize money involved.

These statistics are for the US but the trend has started in India as well. With increasing smartphone and data penetration, the mega gaming trend in India has just begun.

Remember this equation …

Favorable demographics + internet penetration + smartphone coverage + purchasing power = Huge Long Term Profits.

Happy Investing!

Disclaimer: This article is for informational purposes only. It is not a stock proposal and should not be treated as such.

Notes: Equitymaster.com currently inaccessible for technical reasons. We regret the inconvenience. In the meantime, please access our content at NDTV.com. You can also keep track of us Youtube and Telegram.

This article is syndicated from Equitymaster.com

(This story has not been edited by NDTV staff and is automatically generated from a syndicated feed.)

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