Gaming Stocks in India: Should You Invest?

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Gaming Stocks in India: Introduction

The COVID-19 pandemic has been no less than a blessing for the gaming industry. Last year alone, the gaming companies including both sports and film became the leading revenue source in the entertainment sector. Moreover, the gaming industry was valued at nearly $162.3 billion back in 2020. And it's expected to reach over $300 billion by the next five years. This booming growth of the industry has made the gaming sector an attractive investment option for investors. In case you're planning to invest in the gaming company shares in India, this article is for you. Here we will discuss the best gaming companies listed in Indian stock market. Keep reading! 

Gaming Sector in India — Overview 

Currently, the worth of the gaming industry in India is recorded at $930 million and is expected to grow at the rate of 14% per year. 

India's gaming industry is one of the fastest-growing industries in the country. It experienced a growth of nearly 40% in 2020 and is expected to reach nearly $4 billion by the end of 2025. That's not enough. We are giving fierce competition to the gaming industry of other developed countries as well. Believe it or not, the Indian gaming sector has grown at a much better rate than China and USA. From the years 2017 to 2020, the Indian gaming industry grew with a CAGR of a whopping 38%. On the other hand, the gaming sector of the USA grew by just 10% of the CAGR. Also, the growth of the gaming sector in China was recorded to be 8% of CAGR during the same period. Do you know what the best part is? Our gaming industry is in the development phase, which means it has a lot more potential for growth and expansion. The advent of technology, an increase in smartphone use and the availability of data are playing a major role in driving growth in the gaming sector. 

Here are the major growth drivers in the gaming sector of Indi

  • Increasing smartphone penetration 
  • Availability of the Internet 
  • The advent of futuristic technologies 

Best Gaming Companies in India 

Below are the top-listed gaming companies in India:

1. Delta Corp

Delta Corp was originally named Arrow Webtex Limited and currently, it is one and only listed gaming company in India. It is a popular company that is engaged in live, online, and electronic casino gaming. 

It operates multiple casinos in India across Sikkim and Goa states and offers thousands of fun and entertaining gaming options. The price-to-equity ratio of Delta Corp is 106.5, which indicates that it is overvalued. On the other hand, the return-on-equity of the Delta group is recorded at 4.48%.

Note that the company has become completely debt-free and has an impressive interest coverage ratio of 34.65.

2. Nazara Technologies

Another rising gaming company in the sector is Nazara Technologies. It is a well-regarded sports media and gaming company which holds a great position in developed and emerging companies. The main objective of Nazara Technologies is to offer a top-notch gaming experience to more than a billion of internet and mobile players all across the world. 

The P/E ratio of Nazara Technologies is - 258.82, whereas its RoW is 0.18%.

3. Zensar Technologies

The next on the list of best gaming sector stocks in India is Zensar Technologies, a leading gaming company that operates in more than 18 countries from all around the world. It mainly engages in software development and relevant services. Moreover, the other business segments of the company include Software services, consulting, Package solutions, and more. 

Coming to some important parameters, Zensar has a price-to-equity ratio of 27.37 and a return-on-equity of 17.25%. The good thing is, it is a debt-free company with an impressive cash conversion ratio of 274.18.

4. Tata Consultancy Services (TCS

Tata Consultancy Services or TCS is one of the most reputed IT companies in the country, which became a separate entity in 2004.

TCS is a leading service provider when it comes to segments like consulting, IoT, cloud infrastructure, Analytics and Insights, Automation and AI, enterprise applications, cyber security, blockchain, etc. 

The ROE of the company is 42.02%, whereas its P/E ratio is 35.09. Moreover, TCS has no outstanding debt and it's a debt-free company with a healthy cash conversion ratio of 116

69 and 29.65 of impressive profit margin. 

5. Tech Mahindra Ltd.

Tech Mahindra is a familiar name to every Indian. It is a global leader when it comes to consulting, digital transformation, and business re-engineering solutions and services. Further, Tech Mahindra offers a magnitude of services like Consulting, Telecom IT & Network Solutions, Application Outsourcing, Engineering Services, Infrastructure Outsourcing, Platform Solutions, BPO, and Mobile Value Added services and products. 

Tech Mahindra's P/E ratio is 27.12 and RoE is 18.29%. Moreover, it is also a debt-free company with 161.64 as its healthy cash conversion ratio. 

Should You Invest in Gaming Sector Stocks in India? 
The rapid growth of the gaming sector has been mainly due to streams like casual gaming, esports and real money gaming. These segments attract the majority of the audience and lead to an increase in online gamers. What is more important is that the gaming companies have multiple revenue streams. Today, games are usually monetized using strategies like play-to-win, in-game ads, merchandise, pay-to-play, and so on. This indicates that the gaming market of India is ripe and ready to be picked by investors. So, should you invest in gaming sector stocks in India in 2022? Yes. Looking at the growth of the industry, investors should enter and utilize this space. 

Bottom Line 

India's gaming industry has a lot of potential for investors. The best part is, the gaming sector is still in its development stage, which means it has a lot of growth potential. Adding to it, the revenue generation of these companies is also pretty impressive. So, if you're confused about whether or not to invest in this company, go ahead. Pick up the best gaming stocks, do your research, consider your financial goals and status and make a smart investment. For more such information, don't forget to check out INDmoney.  

  • Can I invest in game companies?

  • Which is the best gaming stocks?

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