Nazara share price target slashed by 27%; stock downgraded to 'Reduce', says ICICI Sec
Nazara share price: ICICI Securities cut its target price on the stock by 27 per cent to Rs 1,100 from Rs 1,500 earlier, lowering its rating to ‘Reduce’ in view of the Online Gaming Bill 2025.
- Aug 21, 2025,
- Updated Aug 21, 2025 10:51 AM IST
Nazara Technologies Ltd, which fell over 10 per cent in Thursday’s trade after a 12.88 per cent drop in the previous session, has been downgraded by ICICI Securities. The brokerage cut its target price on the stock by 27 per cent to Rs 1,100 from Rs 1,500, lowering its rating to ‘Reduce’ in view of the Online Gaming Bill 2025. ICICI Securities noted that the Lok Sabha has passed the bill aiming to regulate the online gaming sector, the implementation of which would essentially make online Real Money Gaming infeasible in India.
"While most of the companies operating in the space are unlisted, Nazara Technologies has meaningful exposure in the space via Moonshine Technology (PokerBaazi). We had earlier assigned Rs 400 valuation to Moonshine. Given the ban on RMG, we now cut this to zero," ICICI Securities said.
Nazara’s other verticals such as gamified early learning, publishing and gaming arcades remain unaffected, the brokerage noted ,adding that the formal recognition of eSports as a sport could be a structural positive for Nodwin Gaming.
"As of now, impact on earnings seems limited. Downgrade to REDUCE," it said.
The Modi government has introduced the Promotion and Regulation of Online Gaming Bill, 2025 in the Lok Sabha. Its provisions include criminalisation of digital betting and ban on monetary transactions for RMG (banks and fin-techs barred from processing such payments). Also, the bill prohibits advertising and promotion of real-money games across media platforms. It calls for empowerment of MeitY to regulate and block illegal gaming platforms and establishing a national eSports authority to regulate and promote competitive gaming. It officially recognised eSports as a legitimate sport, putting it under a regulated framework similar to other sports.
"We downgrade Nazara Technologies to REDUCE (from Add) with a revised target price of Rs 1,100 (earlier Rs 1,500), valuing the company using the SoTP framework. Upside risks include faster growth in eSports following formal recognition; and any potential dilution of the RMG ban," it said.
Nazara Technologies Ltd, which fell over 10 per cent in Thursday’s trade after a 12.88 per cent drop in the previous session, has been downgraded by ICICI Securities. The brokerage cut its target price on the stock by 27 per cent to Rs 1,100 from Rs 1,500, lowering its rating to ‘Reduce’ in view of the Online Gaming Bill 2025. ICICI Securities noted that the Lok Sabha has passed the bill aiming to regulate the online gaming sector, the implementation of which would essentially make online Real Money Gaming infeasible in India.
"While most of the companies operating in the space are unlisted, Nazara Technologies has meaningful exposure in the space via Moonshine Technology (PokerBaazi). We had earlier assigned Rs 400 valuation to Moonshine. Given the ban on RMG, we now cut this to zero," ICICI Securities said.
Nazara’s other verticals such as gamified early learning, publishing and gaming arcades remain unaffected, the brokerage noted ,adding that the formal recognition of eSports as a sport could be a structural positive for Nodwin Gaming.
"As of now, impact on earnings seems limited. Downgrade to REDUCE," it said.
The Modi government has introduced the Promotion and Regulation of Online Gaming Bill, 2025 in the Lok Sabha. Its provisions include criminalisation of digital betting and ban on monetary transactions for RMG (banks and fin-techs barred from processing such payments). Also, the bill prohibits advertising and promotion of real-money games across media platforms. It calls for empowerment of MeitY to regulate and block illegal gaming platforms and establishing a national eSports authority to regulate and promote competitive gaming. It officially recognised eSports as a legitimate sport, putting it under a regulated framework similar to other sports.
"We downgrade Nazara Technologies to REDUCE (from Add) with a revised target price of Rs 1,100 (earlier Rs 1,500), valuing the company using the SoTP framework. Upside risks include faster growth in eSports following formal recognition; and any potential dilution of the RMG ban," it said.