SAREGAMA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.5
| Stock Code | SAREGAMA | Market Cap | 6,630 Cr. | Current Price | 344 ₹ | High / Low | 603 ₹ |
| Stock P/E | 32.9 | Book Value | 86.1 ₹ | Dividend Yield | 1.31 % | ROCE | 18.0 % |
| ROE | 13.4 % | Face Value | 1.00 ₹ | DMA 50 | 341 ₹ | DMA 200 | 391 ₹ |
| Chg in FII Hold | -2.00 % | Chg in DII Hold | 2.06 % | PAT Qtr | 58.1 Cr. | PAT Prev Qtr | 47.6 Cr. |
| RSI | 52.2 | MACD | 4.81 | Volume | 2,07,786 | Avg Vol 1Wk | 4,18,751 |
| Low price | 306 ₹ | High price | 603 ₹ | PEG Ratio | 3.09 | Debt to equity | 0.00 |
| 52w Index | 12.8 % | Qtr Profit Var | -5.49 % | EPS | 10.2 ₹ | Industry PE | 36.3 |
📊 SAREGAMA demonstrates healthy fundamentals with strong ROCE (18.0%) and decent ROE (13.4%). The company is debt-free, which enhances financial stability. EPS of ₹10.2 supports earnings visibility, and dividend yield of 1.31% adds shareholder value. Valuation is moderately fair with P/E (32.9) slightly below industry average (36.3), though PEG ratio (3.09) signals overvaluation relative to growth. Current price ₹344 is near its 50 DMA (₹341) but below 200 DMA (₹391), suggesting cautious accumulation. Entry zone is attractive near ₹330–345 for long-term investors.
💡 Long-term investors may hold with a 3–5 year horizon, focusing on ROCE sustainability and dividend yield. Exit strategy: partial profit booking near ₹370–380 or full exit if PEG ratio worsens or profitability declines further.
Positive
- 📈 Strong ROCE (18.0%) and ROE (13.4%).
- 💰 Debt-free balance sheet ensures financial stability.
- 🔎 Dividend yield of 1.31% provides steady income.
Limitation
- ⚠️ PEG ratio (3.09) indicates overvaluation relative to growth.
- 📉 PAT declined from ₹47.6 Cr. to ₹58.1 Cr. with variation (-5.49%).
- 📊 Trading volume below weekly average, showing reduced market activity.
Company Negative News
- 📉 FII holding decreased (-2.00%), reflecting reduced foreign investor confidence.
- 📊 Price below 200 DMA (₹391), indicating medium-term weakness.
Company Positive News
- 📈 DII holding increased (+2.06%), showing strong domestic institutional support.
- 📊 Technicals: RSI at 52.2 and MACD positive (4.81), suggesting neutral-to-bullish momentum.
Industry
- 🎵 Industry PE at 36.3 is slightly higher than SAREGAMA’s 32.9, indicating fair valuation.
- 📈 Music and entertainment sector benefits from digital streaming growth and IP monetization.
Conclusion
⚖️ SAREGAMA is a moderately attractive long-term investment with strong fundamentals, debt-free status, and dividend yield. Ideal entry is near ₹330–345. Long-term investors may hold for 3–5 years, but cautious monitoring of PEG ratio and profitability trends is essential. Exit near ₹370–380 or on deterioration of growth metrics.
This structured HTML report highlights SAREGAMA’s fundamentals, valuation, and sector context with clear entry/exit guidance. Would you like me to extend this into a peer benchmarking overlay against Tips Industries, Shemaroo, and Zee Entertainment to compare relative valuation and growth positioning in the media sector?