Mittersain said he’s hopeful since Google, which hadn’t allowed such apps, is changing its stance. “We’re hopeful they’ve also got more details that the landscape in India is becoming clearer. It’s a positive step.”
From a business perspective, he said the move that allows such apps to be available on Google Play will drive down the cost of user acquisition significantly and apps can then gain from organic discovery.
Nazara’s acquisition-led growth has seen it add Hyderabad-based skill gaming company OpenPlay, which operates ClassicRummy, and Halaplay that offers fantasy cricket, football, and kabaddi.
As of the quarter ended June 30, revenues from these sources make up only 6% of Nazara’s total topline. “Right now, real money gaming is only 6% of our revenues. We’re waiting for clarity on GST slabs, how real money gaming will be taxed,” said Mittersain.
Shares of Nazara Technologies gained as much as 7.2%, before closing 4.7% higher on Monday. The stock is now on a three-day winning streak.
Trading volume is nearly five times the 30-day average. The relative strength index is 75, suggesting the stock may be overbought.
Of the 11 analysts tracking the company, nine maintain ‘buy’, one suggests ‘hold’ and one recommends ‘sell’, according to Bloomberg data. The 12-month consensus price target implies an upside of 5.2%.