Metaverse StocksWhat is Metaverse? This is probably one of the most Googled questions of 2021. It’s been more than one and a half years since Mark Zuckerberg introduced the world to metaverse. Yet the curiosity around metaverse continues to rise even today. Now majority of investors believe that metaverse is another form of online gaming. And while they are partly correct, the universe of metaverse is much more than an online game. I mean, the growth potential of metaverse is so enormous that Facebook, an IT giant decided to rebrand its entire existence! Yes, Facebook officially changed its name to Meta. This was done to show their unwavering faith in the future of metaverse. And Facebook is not the only company in the metaverse space. IT giants like Microsoft, Google, NVidia, Shopify etc. have invested millions and billions of dollars in the metaverse.
- Microsoft has invested nearly $70 billion into acquiring Activision Blizzard, which is a leading video game developer.
- Facebook or Meta, has invested $10 billion into developing hardware and software to provide the best virtual reality (VR) experience.
- Google has also joined the metaverse party. It has earmarked nearly $39.5 million in a private equity fund to be used to finance metaverse projects.
Watch this video to explore more about Metaverse
List of Metaverse Stocks in 2022
|Metaverse Stocks||Market Capitalisation||ROE||ROCE||PE Ratio||EPS||CMP|
|Reliance Industries Ltd.||₹ 17,32,762||7.97%||8.19%||31.5||₹ 89.20||₹ 2,561|
|Nazara Technologies Ltd.||₹ 5,388||1.55%||2.82%||199||₹ 8.70||₹ 1,652|
|Hindustan Media Ventures Ltd.||₹ 513||4.83%||5.75%||7.79||₹ 8.75||₹ 70|
|Triveni Engineering & Industries Ltd||₹ 8,108||20.50%||19.10%||20.3||₹ 16.10||₹ 335|
|Xelpmoc Design & Tech Ltd.||₹ 413||7.85%||7.99%||-||₹ -5.63||₹ 285|
|Tata Consultancy Services Ltd.||₹ 13,45,031||43.70%||54.90%||35.1||₹ 105.00||₹ 3,676|
Table of Contents
What is Metaverse?To understand the meaning of metaverse, let us split the terms and understand each component individually. The term Meta means transcending and Verse is short for universe. So, a metaverse is a universe that transcends the real world. So, when you enter a metaverse, you leave the real physical world behind and step into a 3-dimentional world via carefully curated avatars. This metaverse or virtual world will have realistic looking buildings, people, cars, social activities etc. Imagine you want to meet your friend sitting thousands of kilometres away in Paris. Your only option is to do a video call via Zoom, Skype, WhatsApp or Google Duos. And while you can do this, it isn’t the same as actually meeting and hugging your friend. The limitations of the physical world restricts your interaction. But what if you can actually touch your friend or hug them thousands of kilometres away without ever leaving your bedroom? With metaverse you can do all this and much more! Imagine both you and your friend entering metaverse and exploring new places via specialised jackets or VR headsets. You will be transcending physical barriers to interact with your friend, all courtesy of the metaverse. Still confused? Let me explain metaverse using the popular movie, Jumanji starring Dwayne Johnson. In this movie, four individuals enter a game of Jumanji using different avatars. This virtual world of Jumanji includes individuals, dense forests, villains, and tasks. If you die in this game (more than three times), then you would be lost in the game forever. I know what you must be thinking, a metaverse is exactly like a game! Well, hear me out. While a metaverse seems like a game now, metaverse technology is growing at such a fast pace that very soon, you will not be able to differentiate between a real person and his avatar. If you wink, your avatar will wink. If you feel sad, your avatar will also echo this emotion. So, basically your avatar will be an exact replica of your physical self. While metaverse seems like a futuristic thing, did you know that the term metaverse was actually coined in 1992? Yes, author Neil Stevenson coined the term metaverse in his book Avalanche more than three decades back! Another interesting thing about metaverse is that there is no one centralised metaverse. In fact, there exists five different types of metaverse. And this number is only expected to go up in the near future.
- Decentraland (MANA)
- Sandbox (SAND)
- Axie Infinity (AXS)
- Enjin Coin (AJC).
- Horizon by Facebook.
Uses of Metaverse – Changing Human Interaction Forever1. Metaverse for an Immersive Education Experience: The pandemic was extremely harsh and alienating for students. They had to sit in front of their laptop or phone screens and take part in a rather dull and uninspiring learning experience. Imagine a chemistry teacher conducting an experiment in her home and you watching her through the screen. You will not be able to fully immerse yourself in the experiment. But now imagine you and the teacher wear a VR headset and enter a virtual chemistry lab. You can now pour the chemicals in the beaker and interact with your teacher in real-time but virtually from the comfort of your home. Just imagine the impact of a metaverse education centre on children from rural India. They will be able to witness chemical reactions, attend classes, and participate in games across the globe from their homes! 2. Better Real Estate Buying Experience: Buying real estate is always a pain. The prospective buyer has to physically visit the locations, which involves spending money and time. And while 360-degree-view has helped, it is simply not enough. But with metaverse, home buyers can enter a house in the metaverse and tour it from the comfort of their living room. No more running from one site to another to find your home sweet home. Metaverse will help brokers sell homes efficiently and reduce the cost of site visits. 3. A Surreal Musical Experience: Musical concerts are fun. But imagine going for a concert in the summer, all sweaty with screaming crowds. Add to this, bad seats and your evening is pretty much ruined. But what if you could attend a virtual concert in the metaverse while sitting in your pyjamas sipping margaritas at home. And the best part? You can have the best seats in the house. This is possible with metaverse. In fact, Justin Bieber conducted the first ever metaverse concert on November 19, 2021. In India, Daler Mehendi became the first singer to perform in Metaverse. Musician Daler Mehendi has recently bought a land parcel in Metaverse and named it, Balle Balle Land. This is the first purchase of land on Metaverse in India. 4. Promotes Low-Cost Tourism: A 6-day trip to Paris will roughly cost you Rs 1 Lakh per person. You will have to go to the airport, check in your bags, spend 9 hours in a flight and most probably experience jet lag. But what if you can travel the world virtually without moving an inch? This is how metaverse can transform the tourism industry. Metaverse companies are aggressively creating infrastructure which also includes an exact replica of major cities and tourist destination. Very soon, you will be able to tour Paris and climb the Eiffel Tower via VR headsets without spending lots of money or experiencing a jet lag. 5. Productive Use of Rewards Earned in Games: When you play candy crush, you earn rewards in the form of jelly beans. But what is the use of these jelly beans? Can you exchange them for cash? No, the moment you exit the game, your rewards are worthless. But with metaverse, you can buy and sell your rewards for either cryptocurrency or cash. Consider the example of the decentraland market place. You can buy parcels of land for Ethereum. You can even sell your emojis and badges. There is no doubt that metaverse will bring about a revolution in the way we interact with each other. But this does not mean that metaverse is without any cons. Let us explore some of the biggest issues with metaverse.
The Dark Side of Metaverse1. Not Affordable for all: You cannot enter a metaverse without a VR headset or specialised equipment. But herein lies the biggest problem. You see, the average cost of building an efficient virtual reality headset and other gears are as high as $1,000 or Rs 77,100. Now you cannot expect every individual to spend so much money on electronics. So, metaverse will stay out of reach for rural India and the middle-class until companies can come up with low-cost headsets. 2. Internet Addiction Disorder: Metaverse demands that you surrender to the virtual world. Metaverse companies like Facebook are even paying users money and free coupons to get them to stay in the metaverse for as long as possible. This will increase the engagement rate, but it will also lead to internet addiction disorder, which needs rehab and other drastic measures to cure. 3. Promotes Sedentary Lifestyle: For years, our parents have been behind us to get away from our laptops and go out to interact with actual human beings. But metaverse is planning to hold us in its virtual reality for long periods of time. This will promote sedentary lifestyle and can also lead to cardiovascular diseases and obesity. 4. A disconnect from reality: This is the biggest disadvantage of metaverse. You see, we can change our avatars to suit our imagination. While this promotes body positivity, it can also lead to a disconnect from reality. Individuals can get so caught up with their virtual avatars that they might not be able to function in the real world. This is a real and ever-present danger of metaverse. 5. Undue Influence of Social Media: The more time you spend in metaverse, the more prone you are to biases and influences that can drive your decisions. Companies can influence you to act and behave in a certain way that increases their profitability at the expense of your mental and physical health.
Scope of Metaverse in India & the GlobeDespite all these concerns, there is no doubt that metaverse is here to stay. With companies across the globe investing billions of dollars in building the metaverse, ignoring metaverse stocks will be a huge investment mistake. The metaverse market is estimated to grow at a CAGR of 37.1% and reach US$ 758 billion by 2026. India currently ranks fifth in the list of countries driving metaverse. The world and especially Mark Zuckerberg, is bullish on the growth of metaverse in India and rightly so. Did you know that Indians spend the most number of hours on their mobile phones? Yes, as per a survey by App Annie, the average hours spent on mobile phones has increased by 37% between 2019 and 2021. The biggest benefactor was Instagram (owned by Meta) where Indians spent an average of 13 hours every month. This is a 32% increase from the 9.8 hours spent in 2020. It seems that metaverse companies are counting on our love for our mobile phones! Now we cannot let this billion dollar opportunity slide. So, let us take a look at the list of metaverse stocks in 2022 listed on Indian stock exchanges.
Metaverse Stock #1: Reliance IndustriesReliance Industries is the biggest metaverse stock in India in 2022 as per market capitalisation. They are in a sweet spot when it comes to the growth of metaverse in India. Think about it, what is compulsory for the growth of metaverse? – Fast speed low-cost internet. And who better than Reliance Jio, which has clear dominance in India’s telecom sector. In February 2022, Reliance Jio invested US$15 million to acquire Two Platforms. This company focuses on creating immersive artificial experiences to facilitate lifelike gaming and interaction. Reliance Industries has deep pockets and can invest millions to dominate the metaverse market, similar to what it did in India’s telecom sector. Key Financials of Reliance Industries as on April 12, 2022
|Market Cap (Cr): Rs 1,726,403||Face Value (₹): 10||EPS (₹): 89.22|
|Book Value (₹): 1,097||ROCE (%): 8.19||Debt to Equity: 0.36|
|Stock P/E: 28.6||ROE (%): 7.97||Dividend Yield (%): 0.26|
|Revenue (Cr): 642,162||Earnings (Cr): 102,408||Cash (Cr): 19,074|
|Total Debt (Cr): 263,918||Promoter’s Holdings (%): 50.54|
Metaverse Stock #2: Nazara Technologies LtdNazara Technologies Ltd is a crowd favourite in the Indian metaverse sector. It is a leader in the online gaming segment. The company is currently on an acquisition spree. It has acquired Publishme, a company that builds gaming IPs. It has also acquired Instasportz, which sets up VR lounges in public spaces like malls. It is a well-known fact that metaverse companies will try to entice Indian audiences to spend time in the metaverse with interactive, fun games. And Nazara technologies has a clear advantage here with their expertise in creating immersive games. An interesting fact - The big bull Rakesh Jhunjhunwala owns 32.94 Lakh shares of Nazara Technologies Ltd. valued at Rs 582 crore (as of March 07, 2022). Key Financials of Nazara Technologies Ltd as on April 12, 2022
|Market Cap (Cr): Rs 5,358||Face Value (₹): 4||EPS (₹): 8.7|
|Book Value (₹): 210||Roce (%): 2.82||Debt to Equity: 0.01|
|Stock P/E: 211||ROE (%): 1.55||Dividend Yield (%): 0|
|Revenue (Cr): 570||Earnings (Cr): 82||Cash (Cr): 261|
|Total Debt (Cr): 4||Promoter’s Holdings (%): 0|
Metaverse Stock #3: Hindustan Media Ventures LtdHindustan Media Ventures Ltd is originally a traditional publishing company. But it has recently ventured into the metaverse segment. The company has bought stake in WURKR, a UK based SaaS (Software as a service) platform. The company facilitates teams to work together across the globe in an interactive virtual workspace. With many companies switching to permanent work from home and the great resignation movement taking wings, Hindustan Media Ventures Ltd is a metaverse stock to look out for. Key Financials of Hindustan Media Ventures Ltd as on April 12, 2022
|Market Cap (Cr): Rs 518||Face Value (₹): 10||EPS (₹): 10.08|
|Book Value (₹): 218||Roce (%): 5.73||Debt to Equity: 0.09|
|Stock P/E: 6.26||ROE (%): 4.83||Dividend Yield (%): 0|
|Revenue (Cr): 606||Earnings (Cr): 7||Cash (Cr): 37|
|Total Debt (Cr): 81||Promoter’s Holdings (%): 74.4|
Metaverse Stock #4: Triveni Engineering and Industries LtdTriveni Engineering and Industries Ltd is predominantly a sugar company. But the company has branched out and invested in JetSynthesys. Even Sachin Tendulkar, Adar Poonawala and e-commerce giant, Flipkart has invested in JetSynthesys. The company offers more than 300 interactive games in the entertainment and fashion segments, in collaboration with Wakau, a social media platform. Key Financials of Hindustan Media Ventures Ltd as on April 12, 2022
|Market Cap (Cr): Rs 8,113||Face Value (₹): 1||EPS (₹): 16.13|
|Book Value (₹): 68.7||Roce (%): 19.1||Debt to Equity: 0.34|
|Stock P/E: 16.5||ROE (%): 20.5||Dividend Yield (%): 0.53|
|Revenue (Cr): 4,381||Earnings (Cr): 615||Cash (Cr): 103|
|Total Debt (Cr): 573||Promoter’s Holdings (%): 68.43|
Metaverse Stock #5: Xelpmoc Design and Tech Ltd.Xelpmoc Design and Tech Ltd. is a hidden gem of the metaverse sector in India. The company has recently launched eye-wear in collaboration with X8, which is also actively developing X8 Neo-circus. This will be a virtual creative hub for artists and social media influencers, hosted on Decentraland. With other artists following in the footsteps of Justin Bieber, this metaverse stock can be a real dark horse.
|Market Cap (Cr): Rs 410||Face Value (₹): 10||EPS (₹): -5.63|
|Book Value (₹): 66.1||Roce (%): 7.99||Debt to Equity: 0.00|
|Stock P/E: 0||ROE (%): 7.85||Dividend Yield (%): 0|
|Revenue (Cr): 9.74||Earnings (Cr): -8.95||Cash (Cr): 28.97|
|Total Debt (Cr): 0||Promoter’s Holdings (%): 57.27|
Metaverse Stock #6: Tata Consultancy Services Ltd.Tata Consultancy Services Ltd is also betting big on the Metaverse theme. It has launched a special product basket called themaTiCS, which will have nine horizontals under three primary schemes –
- Time and Space (TAS)
- Culture (CUL)
- Technology (TEC).
|Market Cap (Cr): Rs 1,339,597||Face Value (₹): 1||EPS (₹): 105|
|Book Value (₹): 244||ROCE (%): 54.9||Debt to Equity: 0.09|
|Stock P/E: 35.1||ROE (%): 43.7||Dividend Yield (%): 1.03|
|Revenue (Cr): 184,868||Earnings (Cr): 52,013||Cash (Cr): 18,221|
|Total Debt (Cr): 7,818||Promoter’s Holdings (%): 72.05|