India has emerged as the world’s largest gaming market in recent years, with 9.5 billion gaming app downloads and 568 million gamers. This expansion is being driven by improved IT infrastructure, increased usage of mobile devices, and high-speed internet connectivity.
Furthermore, the introduction of technologies like Augmented Reality (AR), Virtual Reality (VR), and the metaverse into console and computer games is helping to drive this growth. With such a large user base, it is not surprising that investors are looking for new prospects in the gaming industry.
Gaming Industry in India
In recent years, India’s gaming sector has undergone tremendous transformation, with an increase in online gaming involvement throughout the country.
From recreational gaming on mobile devices and PCs to organized esports events and leagues, India is experiencing an unprecedented surge in gaming culture. This development can be ascribed to a variety of factors, including increased internet connectivity in Tier-II and Tier-III towns, as well as lower data costs and smartphones, which have made gaming more accessible to a wider audience.
The Commonwealth Esports Championship in 2022 represented a key milestone, demonstrating esports’ global prominence, as evidenced by the Indian DOTA 2 squad’s amazing bronze medal finish. By 2023, India’s online gaming community had grown to 442 million, giving it the world’s second-largest gaming market, after only China.
Furthermore, the Indian government has launched a number of efforts to foster the expansion of the gaming business. It amends the Information Technology Rules of 2021 to control online gaming and safeguard players from hazardous content and addiction. Furthermore, the establishment of the Animation, Visual Effects, Gaming, and Comics (AVGC) Promotion Task Force intends to improve domestic capabilities and promote the growth of the AVGC sector by developing a National AVGC Policy.
Furthermore, the government’s approval of 100% Foreign Direct Investment (FDI) in the gaming sector opens up prospects for both domestic and foreign investors to contribute to the industry’s growth. However, the gaming market in India is expected to reach USD 7.24 billion by 2029, with a CAGR of 15.68% between 2024 and 2029.
Best Gaming Stocks in India 2024 as per Analyst Ratings
The table below displays the best gaming stocks in India in 2024 based on BUY analyst ratings from the I/B/E/S databases. We have listed these stocks based on analyst ratings since stock market analysts review and rate a stock based on their thorough market research:
| S.No | Gaming Stocks in India (as per analyst ratings) | BUY Analyst Rating (in %) |
|---|---|---|
| 1 | Nazara Technologies | 67 |
| 2 | Zensar Technologies Limited | 63 |
| 3 | Tata Consultancy Services | 51 |
| 4 | Infosys | 48 |
Top Gaming Stocks in India in 2024 as per Market Capitalisation
| S.No | Gaming Stocks in India (as per market capitalisation) |
| 1 | Tata Consultancy Services |
| 2 | Infosys |
| 3 | Tech Mahindra |
| 4 | Zensar Technologies Limited |
| 5 | Nazara Technologies |
Overview of Best Gaming Stocks in India as per Analyst Ratings
1 Nazara Technologies:
Nazara Technologies Limited is an Indian firm that provides a variety of gaming and sports media services. It operates in three major segments: gaming, eSports, and advertising technology.
Kiddopia, Animal Jam, WCC3, and Classic Rummy are all part of the game category. Nazara Technologies participates in esports through Nodwin, PublishMe, and Sportskeeda. Additionally, it provides skill-based, fantasy, and trivia games through OpenPlay, Halaplay, and Qunami. It also offers digital advertising technology solutions through Datawrkz.
The company’s distribution network serves roughly 52 telecom carriers across 58 countries, including Africa, the Middle East, and South Asia. Nazara Technologies’ subsidiaries include Nazara Technologies FZ LLC, Nazara Pte Limited, and Sports Unity Private Limited, among others.
2 Zensar Technologies Ltd:
Zensar Technologies Limited is a firm that offers digital solutions and technological services. It serves a variety of industries, including healthcare and life sciences, high-tech engineering, communications, banking and financial services, insurance, consumer, and manufacturing services.
Zensar Technologies provides a wide range of IT services and solutions in two key categories: Digital and Application Services (DAS) and Digital Foundation Services (DFS).
The DAS category offers specialized application management services, such as development, maintenance, modernization, support, and testing, across a variety of industries and technologies. On the other hand, the DFS segment provides infrastructure management services such as digital workspace, hybrid IT, unified IT, and dynamic security services via a managed service platform that employs autonomics, automation, and machine learning.
3 Tata Consulting Services:
Tata Consultancy Services Limited (TCS), a subsidiary of Tata Sons Private Limited, is a market leader in information technology (IT) services. These services include Internet of Things, quality engineering, blockchain, consultancy, business process outsourcing, business intelligence, cloud services, infrastructure services, and enterprise solutions.
It also offers business solutions in a variety of industries, including banking, financial services, insurance, media, technology, life sciences, information services, communication, healthcare, retail, manufacturing, energy, hospitality, and more. TCS’s software portfolio includes TCS MasterCraft, TCS Optumera, TCS OmniStore, TCS BaNCS, Jile, TCS iON, TCS TwinX, TAP, Ignio, TCS ADD, Quartz, and TCS HOBS.
4. Infosys:
Infosys Limited, founded in 1981, is a digital services and consulting company that offers technology-driven business solutions. It offers data analytics, artificial intelligence, digital workspaces, digital process automation, digital marketing, cybersecurity, blockchain, salesforce, IoT, engineering, cloud services, and consultancy.
These products are designed for a variety of industries, including agricultural, consumer packaged goods, aerospace and defense, communication services, high technology, automotive, healthcare, education, financial services, insurance, mining, oil and gas, and life sciences.
It also serves businesses like media and entertainment, logistics and distribution, professional services, the public sector, retail, travel, hospitality, and utilities. Infosys operates in more than 56 countries and has 13 subsidiaries worldwide.
Factors to Consider Before Investing in Gaming Stocks
Before you invest in gaming stocks, consider the following factors. The factors are as follows:
Evaluating New Game Ideas
Evaluating the potential of fresh and unique game concepts is critical. Investing in potential new concepts with adequate initial capital can boost the likelihood of commercial success and return on investment.
So, keep a look out for novel concepts that have the ability to pique the market’s interest.
Management Quality
Before investing in gaming stocks, it is critical to assess gaming firms’ leadership and management teams, as well as their ethical practices. Assess the leadership team’s industry experience and track record of accomplishment.
To connect investments with integrity and reduce risks, look for organizations having a track record of ethical operations.
Valuation
Consider the current value of a gaming company. Ensure that it is consistent with its financial performance and growth potential. This allows you to decide whether the investment is warranted.
Competition
India’s gaming sector is competitive. To succeed, you must evaluate a company’s competitive position in relation to its counterparts. Consider aspects such as product offers, customer base, and pricing to see how it compares to the competition.
Regulations
Consider the regulatory and legal concerns before investing in the gaming sector.
Changes in gaming rules or regulations can have a significant influence on the sector, thus it is critical to invest in organizations who understand the legal climate. Laws governing privacy and data protection can have a substantial impact on the industry’s revenue.
Financial Performance
Evaluating a gaming company’s financial success is critical. To find financially sound organizations with growth potential, consider metrics such as revenue growth, profit margins, and cash flow.
Should You Invest in Gaming Stocks?
Before investing in gaming equities, consider the challenges and hazards that the Indian gaming industry may encounter as it expands.
Dealing with rules and regulations, particularly data privacy legislation, presents a significant problem. This can be challenging because India is still catching up to global standards. Furthermore, the fact that software patents are not permitted makes it difficult for businesses to innovate, particularly those that produce digital products.
They must protect their software code within the existing laws. Furthermore, following to various compliance regulations can be costly and stifle growth, especially for new businesses. Even if gaming stocks appear to be promising, it is critical to understand and address these concerns before investing.
