Nazara Technologies Ltd.
ISIN: INE418L01047 • Market Cap: ₹13,803 Cr
The 5-Pillar Quality Audit for Nazara Technologies Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (12.9%), Return on Capital Employed (2.8%), and equity compounding (2.6%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.05 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (17.3%) and 3Y PAT CAGR (88.7%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of — vs PEG of — and Dividend Yield of —.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 34.3%, backed by 15.6% institutional ownership.
Key Fundamental Strengths
Fortress Balance Sheet (D/E: 0.05)
The company operates virtually debt-free, shielding net margins from interest rate cycles and monetary tightening.
Strong Topline Expansion (3Y Sales CAGR: 17.3%)
Revenue has expanded at 17.3% CAGR over 3 years, signaling industry market-share gains.
High-Velocity Profit Compounding (3Y PAT CAGR: 88.7%)
Net earnings have compounded at 88.7% annualized, demonstrating operating leverage.
Areas to Watch & Potential Risks
Subdued Capital Efficiency (ROCE: 2.8%)
A sub-12% ROCE suggests return on capital barely exceeds the company's weighted average cost of capital (WACC).
Sectoral & Macro Headwinds (Media Entertainment & Publication)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Media Entertainment & Publication space.
Quantitative Strategy Eligibility
Checking NAZARA against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 61/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Media Entertainment & Publication Sector Peer Comparison
Compare NAZARA directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Nazara Technologies Ltd. (NAZARA)Current | 61/100 | ₹13,803 Cr | — | 2.8% | 0.05 | — |
| Prime Focus Ltd. (PFOCUS) | 43/100 | ₹21,728 Cr | 187.99 | 15.2% | 7.31 | View |
| Sun TV Network Ltd. (SUNTV) | 71/100 | ₹18,938 Cr | 12.38 | 19.8% | 0.00 | View |
| PVR INOX Ltd. (PVRINOX) | 73/100 | ₹11,796 Cr | 26.53 | 3.3% | 0.10 | View |
| Zee Entertainment Enterprises Ltd. (ZEEL) | 60/100 | ₹9,836 Cr | 47.82 | 9.2% | 0.01 | View |
| Saregama India Ltd (SAREGAMA) | 76/100 | ₹9,801 Cr | 44.26 | 16.5% | 0.00 | View |
Frequently Asked Questions: Nazara Technologies Ltd.
Q:What is the 5-Pillar Fundamental Score for Nazara Technologies Ltd. (NAZARA)?
Nazara Technologies Ltd. has a RupeeTools Fundamental Score of 61/100, placing it in the 'Moderate / Average' category. Its pillar scores are: Profitability (43/100), Financial Health (81/100), Growth (92/100), Valuation (15/100), and Ownership Quality (60/100).
Q:Is NAZARA fundamentally strong for long-term investment?
NAZARA currently holds a moderate quality rating of 61/100. While it operates in the Media Entertainment & Publication sector, investors should monitor its profit margins before initiating long-term positions.
Q:Does NAZARA pass the Coffee Can Investing filter?
No. NAZARA does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does NAZARA compare against other Media Entertainment & Publication peers?
Within India's Media Entertainment & Publication sector, NAZARA trades at a P/E of — and generates an ROCE of 2.8%. Compare its 5-Pillar score of 61/100 against top sector peers like Prime Focus Ltd. (43/100), Sun TV Network Ltd. (71/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.