New Delhi, Sept. 5 -- Nazara Technologies Ltd, a darling of the Indian gaming market, is sailing through rough waters. After the stock hit a 52-week high of Rs.1,453 on 13 August, it is currently struggling around the Rs.1,100 level.

Blame the online gaming law, which banned real-money gambling games in India. Pokerbaazi, operated by Moonshine Technologies, in which Nazara invested Rs.832 crore for a 47.7% stake plus Rs.150 crore via preferential shares, has been hit hard as real money gaming operations have stopped.

But the good news is that Moonshine is only an associate company, so its revenue isn't consolidated into Nazara's books. The bad news? Nazara will likely have to write down this massive investment, which will drag its profi...