Nazara Technolo. (NAZARA)

FairStock Score: 8/100 — RISKY

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

Strengths

• Low debt-to-equity of 0.06 provides balance sheet resilience
• Latest quarter shows some scale with ₹406 Cr sales and a small ₹9 Cr net profit
• Promoter holding of 35.46% indicates owner alignment
• Positive ROCE of 2.50% suggests the company is not entirely asset-heavy or loss-making at operating level

Concerns

• P/E of 0.00 and ROE of -57.50% indicate no meaningful annual earnings power
• Sales declined 24.07% and profit fell 67.01%, showing a shrinking business
• P/B of 6.20 is very expensive relative to book value of ₹43.88 and negative returns
• Piotroski F-Score of 3/9 and zero dividend yield add to the risk
• FairStock Score of 0/100 flags severe fundamental risk

AI Analysis

At ₹272.05, Nazara asks me to pay ₹9,810 Cr for a business that earns nothing. The P/E of 0.00 tells the story: there is no annual profit to justify this price. Book value is only ₹43.88, so I am paying 6.20 times book for a company whose return on equity is -57.50%. That is the opposite of the franchise quality I look for. A business that destroys shareholder capital at this rate should trade at a discount to book, not at a premium. Sales are down 24.07% and profits have fallen 67.01%. Latest quarter sales of ₹406 Cr produced just ₹9 Cr of net profit, a razor-thin margin with no clear momentum. ROCE of 2.50% is far below any acceptable hurdle rate. The Piotroski F-Score of 3/9 confirms weak fundamentals across profitability, leverage, and efficiency. There is no dividend yield, so the patient owner receives no income while waiting. On the positive side, debt-to-equity of 0.06 gives the company financial flexibility, and promoter holding of 35.46% shows some skin in the game. But those do not turn this into an investment. Benjamin Graham would say price is what you pay, value is what you get. Here, I see no reliable stream of earnings, no moat visible in the numbers, and no margin of safety. This is not a business I can value with confidence. At best, it is a speculative turnaround. I would not buy; I would wait for proof of durable profitability and a price far below intrinsic value.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer