Overview of the Indian gaming sector
The Indian gaming industry has witnessed outstanding growth over the years. From video games on mobiles to PCs and PlayStations, the visual experience has played a huge role. Additionally, with the thrilling experience brought by the
Commonwealth Esports Championship, 2022 we all became witnesses to a community that is skilled, large and competitive. India stands at 2nd in the world as a community for gaming user base making it a wide playing field for investors to put their money in gaming industry stocks. 2
Key Drivers of Growth
The gaming industry in India has seen evident growth in the past decade. Factors like IT development, the young population, the boredom during COVID-19 19 and many more have paved the way for the industry's growth.
Let’s take a look at the key drivers of growth:
The country has witnessed path-breaking growth in the IT sector right from infrastructure to key developments in IT technology enabling the gaming industry to boom.
India is a country with a young population. Records suggest that around 48% of the country’s population is below the age of 25, giving the gaming industry a significant boost.
The penetration of affordable Internet in every nook and corner of the country has provided easy access to the gaming world.
Major Players in the Gaming Industry
Here’s a list of major players in the gaming industry to provide you with a detailed insight in the sector:
Investors looking for a company that serves as an index asset in the stock market have found The Global Corporation of Eros STX an interesting opportunity. The corporation has made substantial investments in top gaming projects in addition to being a pioneer in offering an immersive entertainment experience.
Delta Corp is a well-known name in the gaming world that goes beyond India. They are the only listed company in India engaged in casino gaming in India in live, electronic and online areas. With over 2,000 open gaming positions their state-of-the-art onshore and offshore casinos have changed the way Indians view casinos.
Zensar Technology is known for its unique digital solutions and technology services. Their advanced technology and innovative ideas have become the backbone of the Indian gaming sector. Providing solutions for Digital and Application Services (DAS) and Digital Foundation Services (DFS), Zensar Technologies has become an area of interest for many investors.
A name that has completely revolutionised the gaming sector in India, Nazara Technologies operates in three main segments; Gaming, eSports and Ad Tech. Their distribution network is spread over 52 telecom operators in around 58 countries enabling investors to enter a vast and global market.
Inox Leisure Limited has taught virtual reality rights to the gaming industry. Their presence in the gaming sector is largely driven by virtual reality experiences and gaming zones in its theatres. They are worth exploring for Investors looking for stocks in the entertainment and futuristic company.
Top gaming stocks
Take a look at the some of the top gaming stocks and their promising returns to make an informed decision while putting in your money: 3
Company
| Market Cap (in INR Cr)
| Price-to-Earnings Ratio
|
Nazara Technologies Limited
| 6,200
| 48.2
|
Delta Corp Limited
| 12,500
| 32.1
|
The Global Corporation of Eros STX
| 3,900
| N/A
|
Inox Leisure Limited
| 8,100
| 64.7
|
Note- Kindly check the updated Market Cap and Ratio for gaming stocks before putting your money in.
Factors to Consider Before Investing in Gaming Stocks
If you are planning to invest in gaming stocks, then keeping these factors in mind can help you mitigate risks and make smarter decisions:
The first aspect that an investor must evaluate is the company’s financial performance by looking at revenue growth, cash flow and profit margin.
As an investor with an interest in the gaming industry, one must know that the industry runs with high ethics and is a close-knit community making it important to analyse the company’s leadership and management team to understand their principles, industry experience and track record of success.
The gaming world is highly competitive with companies introducing new ideas, and high-tech-based visuals for a thrilling experience. Being an investor, keeping track of companies with promising and futuristic ideas becomes crucial.
Risks and Challenges
Just like any other sector in the stock market, gaming industry stocks are also subjected to certain risks and challenges that an investor must be aware of including:
Market saturation is a phenomenon where the market for a particular product reaches its maximum point. This becomes a challenge for investors in the gaming sector as companies have the risk of reaching a saturation point.
The gaming industry continues to face the challenges of establishing a difference between gaming of chance and gaming of skill. The former is largely prohibited, requiring companies to get a wide mist of clearances and approvals.
Investing in stocks in the gaming industry is associated with an additional challenge of surviving in the competitive landscape. Companies are constantly updating their technology and accessibility to reach a wider market which makes the stocks volatile.
Conclusion
Planning to enter the gaming industry stocks? Be aware of its potential growth and carefully evaluate the risks and challenges associated with it. Gaming industry stocks have been showing promising figures creating a field worth exploring.
To start investing in gaming stocks, you can use your trading account or create a new account with a reputed portal like Bajaj Trading and get timely updates on stock market futures.
Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.
This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.
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