The gaming company stocks have become the new favourite of Indian investors. If you are wondering whether you should invest in these stocks, here is a lowdown of Indian gaming stocks in the recent past.
Overview of the Indian gaming sector
The gaming industry is relatively new in the Indian industry demography. But as the popularity of mobile games increased, there has been a surge in the number of gaming companies. India’s gaming industry is on the path of rapid growth. The number of game development companies reached 275. The present value of the Indian gaming industry is Rs 143 billion, which has increased from Rs 4 billion in 2007.
Key drivers of the growth
- Large young population: India is a young country, meaning 46 percent of India’s population is below the age of twenty-five. Since the demography of any country plays a significant role in developing the gaming industry, India’s growing young demography has given the Indian gaming industry a considerable boost.
- Large smart phone user base: Secondly, the smartphone user base is rapidly growing in India. There are 502.2 million smartphone users in the country, with a smartphone penetration of 36.7 percent. The high number of smartphone users has helped revolutionise the Indian gaming industry, where mobile phone gaming apps were 86% of all gaming apps in 2021.
- Affordable internet: Moreover, internet rates are affordable in India. Compared to the global average of USD 8.53 for 1GB of data, it costs only USD 0.26 in India. As a result, an average Indian consumes 14.6 GB of data monthly compared to 11GB of data from US users.
- Covid-19: The outbreak of the COVID-19 pandemic has given a significant boost to the Indian gaming sector. According to data, there was an almost 170 percent rise in the number of new gamers in India’s top 30 tier III cities.
- Growth of IT sector: The booming IT sector also supports the gaming industry. The growing number of talented game developers has helped India become a significant backend development hub for gaming companies.
- Adoption of digital payment: Widespread adoption and growth in digital payment methods have contributed to the rapid increase in online payment on gaming portals.
The industry has recorded the highest growth in recent years. Between 2019 and 2020, the Indian gaming sector registered 40% growth and generated USD 1.5 billion in revenue.
The government of India has adopted several measures to capitalise on the expanding market of online gaming and e-sports. Growing internet penetration and affordable data have revolutionised the Indian online gaming and entertainment segments. India has the potential to capture 5% of the global market share in animation, visual effects, gaming and comics (AVGC), growing at a CAGR of 25-30%.
Top gaming stocks
The company was formerly known as Arrow Webtex Limited. It is the only listed company engaged in physical and online casino gaming. The company is involved in managing several casinos in Goa and Sikkim.
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Zensar is a global company operating in eighteen countries. They offer software development and allied services under different divisions in consulting, software service, package solutions and more.
Zensar’s game testing CoE offers an end-to-end testing framework across consoles, mobile, PC, and online games.
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Nazara Technologies is a leading player in the diversified gaming and esports dimension. Nazara stocks have generated significant returns for investors since their debut on the stock exchanges in 2021.
Some popular games developed by Nazara Technologies are Motu Patlu Run, Epic Cricket – Big Leagues Game, Ludo Games, and more.
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TCS offers diversified IT and digital solutions to a global clientele. The services TCS offers include consulting, cloud solutions, analytics and insights, IoT, blockchain, cyber securities, enterprise applications, AI, automation and more.
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Tech Mahindra operates in diversified segments of digital transformation, consulting, and business re-engineering services and solutions. The company offers a bouquet of services, a global leader and a leading Indian IT company.
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India is among the top five mobile gaming markets in the world. The Indian gaming industry has recently left behind the US with more than 300 million users. The gaming sector is India’s latest sunrise industry, expected to reach USD 5 billion in revenue by 2025. If you want to penetrate early in the growing industry, this is your opportunity. Start your investor journey and Open a Demat account with Angel One.
Disclaimer: “This blog is exclusively for educational purposes and does not provide any advice/tips on Investment or recommend buying and selling any stock”