⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
SAREGAMA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.7
| Stock Code | SAREGAMA | Market Cap | 6,758 Cr. | Current Price | 351 ₹ | High / Low | 603 ₹ |
| Stock P/E | 33.6 | Book Value | 86.1 ₹ | Dividend Yield | 1.28 % | ROCE | 18.0 % |
| ROE | 13.4 % | Face Value | 1.00 ₹ | DMA 50 | 345 ₹ | DMA 200 | 408 ₹ |
| Chg in FII Hold | -2.64 % | Chg in DII Hold | -0.12 % | PAT Qtr | 58.1 Cr. | PAT Prev Qtr | 47.6 Cr. |
| RSI | 57.2 | MACD | 2.13 | Volume | 2,50,403 | Avg Vol 1Wk | 9,07,370 |
| Low price | 307 ₹ | High price | 603 ₹ | PEG Ratio | 3.15 | Debt to equity | 0.00 |
| 52w Index | 14.8 % | Qtr Profit Var | -5.49 % | EPS | 10.2 ₹ | Industry PE | 36.2 |
📊 Financial Overview
- Revenue & Profit Growth: Quarterly PAT rose from ₹47.6 Cr. to ₹58.1 Cr., though profit variation shows -5.49% decline YoY.
- Margins: ROE at 13.4% and ROCE at 18.0% → strong efficiency.
- Debt: Debt-to-equity ratio of 0.00 → debt-free balance sheet.
- Cash Flow: Stable, supported by strong licensing and content monetization.
- Return Metrics: EPS at ₹10.2, consistent earnings power.
💹 Valuation Indicators
- P/E Ratio: 33.6 vs Industry PE of 36.2 → fairly valued.
- P/B Ratio: Price ₹351 / Book Value ₹86.1 ≈ 4.07.
- PEG Ratio: 3.15 → expensive relative to growth.
- Intrinsic Value: Current valuation moderately stretched, but supported by brand strength.
🏢 Business Model & Competitive Advantage
- Operates in music, film, and digital content licensing.
- Competitive advantage lies in extensive music catalog and strong brand recall.
- Debt-free status enhances financial resilience.
- Challenges include reliance on consumer demand and digital competition.
📈 Entry Zone Recommendation
- Technicals: RSI at 57.2 (neutral), MACD positive, price near 50DMA (345) but below 200DMA (408).
- Entry Zone: Attractive accumulation near ₹330–350 for long-term investors.
- Holding Guidance: Suitable for long-term holding given strong brand and catalog, but growth outlook is modest.
✅ Positive
- Debt-free balance sheet.
- Strong ROCE (18.0%) and ROE (13.4%).
- Dividend yield at 1.28% provides income stability.
⚠️ Limitation
- PEG ratio high at 3.15, suggesting expensive valuation relative to growth.
- Profit variation shows decline (-5.49%).
- FII holdings decreased (-2.64%).
📉 Company Negative News
- Stock corrected from ₹603 to ₹351.
- FII holdings decreased significantly (-2.64%).
- Quarterly profit variation negative (-5.49%).
📈 Company Positive News
- Quarterly PAT improved to ₹58.1 Cr.
- DII confidence increased slightly (+0.12%).
- MACD positive, showing improving technical momentum.
🌐 Industry
- Entertainment and music industry has strong long-term demand drivers.
- Industry PE at 36.2 indicates sector trades at high valuations.
- Digital streaming and licensing growth supports future expansion.
🔎 Conclusion
- SAREGAMA shows strong fundamentals with debt-free balance sheet and healthy returns.
- Valuations are fair but growth outlook is modest, limiting upside.
- Best considered for long-term investors with entry near ₹330–350; holding depends on sustained content monetization and digital expansion.