⚠ 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 | 6,434 Cr. | Current Price | 337 ₹ | High / Low | 603 ₹ |
| Stock P/E | 31.4 | Book Value | 86.1 ₹ | Dividend Yield | 1.33 % | ROCE | 18.0 % |
| ROE | 13.4 % | Face Value | 1.00 ₹ | DMA 50 | 363 ₹ | DMA 200 | 434 ₹ |
| Chg in FII Hold | -2.64 % | Chg in DII Hold | -0.12 % | PAT Qtr | 47.6 Cr. | PAT Prev Qtr | 40.2 Cr. |
| RSI | 44.6 | MACD | -8.92 | Volume | 72,600 | Avg Vol 1Wk | 2,42,085 |
| Low price | 319 ₹ | High price | 603 ₹ | PEG Ratio | 2.95 | Debt to equity | 0.00 |
| 52w Index | 6.56 % | Qtr Profit Var | -2.87 % | EPS | 10.6 ₹ | Industry PE | 34.9 |
📊 Core Financials
- Quarterly PAT at 47.6 Cr vs 40.2 Cr previously, showing sequential growth but slight YoY decline (-2.87%).
- ROE at 13.4% and ROCE at 18.0% indicate healthy capital efficiency.
- Debt-to-equity ratio at 0.00, debt-free balance sheet ensures financial stability.
- EPS at 10.6 ₹ provides a solid earnings base, supported by consistent profitability.
💹 Valuation Indicators
- P/E ratio: 31.4, slightly below industry average of 34.9, suggesting fair valuation.
- P/B ratio: ~3.9 (337 ₹ / 86.1 ₹ book value), showing moderate premium pricing.
- PEG ratio: 2.95, indicating valuation is expensive relative to growth.
- Intrinsic value appears close to current price, offering limited margin of safety.
🏢 Business Model & Competitive Advantage
- Saregama operates in music publishing, content licensing, and digital entertainment.
- Competitive advantage lies in its vast music library and strong brand recognition.
- Expansion into digital streaming and Carvaan devices diversifies revenue streams.
📈 Entry Zone & Long-Term Guidance
- Entry zone: 320–340 ₹ range (near recent low of 319 ₹ and RSI at 44.6).
- Long-term holding viable for investors seeking exposure to India’s growing digital entertainment sector.
- Accumulation should be cautious due to PEG ratio and weak short-term technicals.
Positive
- Debt-free balance sheet ensures financial stability.
- Strong ROCE (18.0%) and ROE (13.4%).
- Dividend yield at 1.33% provides income support.
Limitation
- PEG ratio at 2.95 indicates expensive growth-adjusted valuation.
- Quarterly profit variation shows slight decline (-2.87%).
- Stock trading below 50 DMA (363 ₹) and 200 DMA (434 ₹), reflecting bearish trend.
Company Negative News
- FII holdings decreased (-2.64%), showing reduced foreign investor confidence.
- DII holdings also declined slightly (-0.12%).
Company Positive News
- Sequential PAT growth (47.6 Cr vs 40.2 Cr).
- Debt-free operations and consistent dividend payout.
Industry
- Industry PE at 34.9, slightly higher than Saregama’s 31.4, suggesting fair sector valuation.
- Digital entertainment and streaming industry expected to grow steadily with rising demand.
Conclusion
- Saregama is financially stable with strong returns and debt-free operations.
- Valuations are fair but PEG ratio highlights growth concerns.
- Accumulation near 320–340 ₹ is suitable for long-term investors seeking exposure to digital entertainment and content licensing.
I can also extend this into a peer comparison with Tips Industries and Zee Entertainment to highlight how Saregama stacks up in valuation and profitability. Would you like me to draft that next?