Tanushree Jaiswal
Last Updated:
11th December 2024 - 06:01 pm
Best ESports Stocks in India: Top Picks for Smart Investors
Driven by a young demographic, growing smartphone usage, and affordable internet access, the eSports industry is seeing unprecedented growth in India. As the eSports and gaming industry booms worldwide, companies involved in online gaming platforms and digital gaming are gaining a lot of traction. Both young and seasoned investors are finding them an attractive investment opportunity. This article covers some of the best eSports stocks in India, examining their fundamentals, technical aspects, overview, recent performance, and potential market growth.
Best Esports Stocks
As of: 10 Jan, 2025 03:59 PM
Best ESports Stocks in India as per Fundamentals and Key Performance Indicators
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1. Delta Corp Ltd
Delta Corp Ltd. (DCL) is India’s leading casino and gaming operator, operating in segments such as online gaming, casino gaming, and hospitality. The company ventured into online gaming with Adda52, its online poker platform offering rummy, poker, and card games. It also launched Faboom, a multi-gaming platform for fantasy and real-money gaming.
- Market Cap: ₹3,133 Cr
- Stock P/E: 27.1
- Book Value: ₹95.1
- Dividend Yield: 1.06%
- ROCE: 12.4%
- ROE: 8.76%
- Face Value: ₹1.00
Data as on Nov 12, 2024
Investment Appeal: As India’s only listed casino operator, Delta Corp’s move into online gaming provides exposure to both offline and online gaming markets.
Recent Developments: Expanded its digital footprint through Adda52, leveraging India’s growing demand for online gaming.
2. Nazara Technologies Ltd
Nazara Technologies is a prominent India-based eSports and gaming company, offering services such as gaming, sports media, AdTech, and gamified learning. Operating in 64 countries, Nazara has investments in platforms like Nodwin Gaming, a leading Indian eSports company.
- Market Cap: ₹6,651 Cr
- Stock P/E: 79.7
- Book Value: ₹261
- Dividend Yield: 0.00%
- ROCE: 5.53%
- ROE: 3.42%
- Face Value: ₹4.00
Data as on Nov 12, 2024
Investment Appeal: Strong growth in eSports and mobile gaming positions Nazara as a leading gaming stock in India.
Recent Developments: Partnerships and acquisitions to strengthen its presence in Indian and international gaming markets.
3. Zensar Technologies Ltd
Zensar Technologies is a digital solutions company providing IT services like data engineering, cloud computing, and advanced engineering. Although not directly in gaming, Zensar supports eSports infrastructure through its tech services.
- Market Cap: ₹16,014 Cr
- Stock P/E: 24.7
- Book Value: ₹163
- Dividend Yield: 1.29%
- ROCE: 25.2%
- ROE: 20.0%
- Face Value: ₹2.00
Data as on Nov 12, 2024
Investment Appeal: Provides exposure to the digital infrastructure supporting eSports.
Recent Developments: Focus on interactive entertainment tech solutions.
4. Zee Entertainment Enterprises Ltd
Zee Entertainment has ventured into digital gaming through Zee5, hosting eSports events and gaming content. Its diversified entertainment platform adds value to the gaming ecosystem.
- Market Cap: ₹11,204 Cr
- Stock P/E: 26.2
- Book Value: ₹117
- Dividend Yield: 0.87%
- ROCE: 6.26%
- ROE: 2.09%
- Face Value: ₹1.00
Investment Appeal: Promising growth potential in digital gaming through its diverse content library.
Recent Developments: Expanded digital offerings through Zee5.
Data as on Nov 12, 2024
5. OnMobile Global Ltd
OnMobile specializes in mobile gaming and cloud-based gaming platforms, tapping into India’s growing digital gaming market.
- Market Cap: ₹838 Cr
- Stock P/E: NIL
- Book Value: ₹61.2
- Dividend Yield: 0.00%
- ROCE: 4.84%
- ROE: 2.33%
- Face Value: ₹10.00
Data as on Nov 12, 2024
Investment Appeal: Cloud gaming expertise positions OnMobile as a unique player in the eSports market.
Recent Developments: Enhanced mobile gaming content and cloud solutions.
Overview of the Indian ESports Industry
The Indian eSports industry is experiencing exponential growth, driven by increased viewership, sponsorships, and mobile gaming popularity. With the market expected to grow from US$200.7 million in 2023 to US$919 million by 2032, the sector offers immense opportunities for investment.
- Market Size: US$200.7 million (2023), projected to US$919 million (2032).
- Growth: CAGR of 7.44% (2024-2028).
- Revenue Streams: Tournament revenues, media streaming, and in-game purchases.
- Economic impact: The esports industry is expected to generate an economic value of around INR100 billion between now and FY2025.
- International recognition: Esports is being recognized as a professional sport comparable to football and hockey. India has hosted several national and international tournaments, including the Battlegrounds Mobile India Pro Series
- Investment opportunities: Esports stocks can be a good investment opportunity because of the sector's rapid expansion. However, esports revenues only make up a small percentage of the overall revenues of the companies that have investments in the sector.
Factors to Consider When Investing in ESports Stocks
When investing in ESports stocks, you can consider factors such as:
- Regulatory Landscape: The ESports industry is risky as it is subjected to changing rules and regulations. So, while investing in the gaming industry, investors must consider current as well as potential restrictions.
- Technological Edge: Companies focusing on AI, cloud gaming, and VR are better positioned to capture future opportunities.
- Global Partnerships: Collaborations with global gaming companies can bring advanced tech and fresh content to the Indian market.
- Market Demand: India’s young demographic and rising internet penetration are driving a steady demand for gaming and eSports content.
- Revenue Models: Key revenue sources in eSports include advertising, subscriptions, and in-game purchases.
- Future Outlook: Why Indian ESports Stocks Are a Strong Investment Option
Driven by high user engagement and increasing investment in digital platforms, India's eSports industry is estimated to continue its upward trend, Companies such as Nazara Technologies, Delta Corp, Zee Entertainment, Zensar Technologies, and OnMobile Global are well-poised to advantage from this growth, making them strong candidates for investors looking to tap into India’s gaming revolution.
In Summary:
For investors looking to invest in the expanding eSports stock market, companies like Nazara Technologies, Delta Corp, OnMobile Global, and Zensar Technologies offer direct and indirect exposure to this booming industry. With the right balance of digital content, technological support, and cloud-based platforms, these stocks hold promising growth potential for those looking to invest in India’s eSports and gaming future.