SAREGAMA - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.6

📊 Core Financial Analysis

Profitability & Returns

EPS: ₹10.6 — decent for a ₹481 stock, though not exceptional.

ROE: 13.1% & ROCE: 18.0% — strong return metrics, indicating efficient use of capital.

PAT Qtr: ₹56.2 Cr vs ₹62.3 Cr — slight decline, but Qtr Profit Var: +4.5% YoY, showing stable performance.

Debt & Leverage

Debt-to-Equity: 0.00 — debt-free, a major positive for financial resilience.

Dividend Yield: 0.94% — modest but consistent, adds to shareholder value.

💰 Valuation Metrics

Metric Value Insight

P/E Ratio 46.2 High vs industry PE of 35.2 — premium valuation

P/B Ratio ~5.87 Rich valuation, but supported by strong ROCE

PEG Ratio 4.80 High PEG suggests expensive growth, may be pricing in future potential

Intrinsic Value ~₹420–₹450 Current price is slightly above fair value, but not excessive

🏢 Business Model & Competitive Edge

India’s leading music label and content owner, with a vast catalog of retro and contemporary music.

Expanding into OTT content, Carvaan audio devices, and licensing — diversified revenue streams.

Competitive advantage lies in IP ownership, brand legacy, and monetization of digital content.

Strong tailwinds from streaming growth and digital consumption, but faces competition from newer platforms.

📉 Technical & Sentiment Indicators

RSI: 39.1 — approaching oversold zone, potential for technical bounce.

MACD: -8.07 — bearish momentum.

Volume slightly below average — subdued interest.

DMA 50 & 200 above current price — short-term weakness.

FII & DII holdings up — positive institutional sentiment.

🧠 Investment Guidance

🔍 Entry Zone (If Undervalued)

Ideal Buy Range: ₹430–₹460

Near intrinsic value and technical support.

Offers a good entry for long-term accumulation.

📈 Long-Term Holding View

Good candidate for long-term holding

Debt-free, strong ROCE, and IP-driven business.

Beneficiary of digital media growth.

Watch for margin expansion and content monetization.

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