SAREGAMA - Investment Analysis

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

Investment Rating: 3.8

🎵 Saregama India Ltd (SAREGAMA) — Long-Term Investment Analysis

Saregama is a legacy entertainment company with strong brand equity, diversified revenue streams (music, films, Carvaan), and a clean balance sheet. While its fundamentals are solid, valuation concerns and recent price weakness make it a cautious long-term buy.

🔍 Key Financial Metrics

Metric Value Interpretation

P/E Ratio 46.2 Above industry average (35.2) — expensive

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PEG Ratio 4.80 Overvalued relative to growth

ROE / ROCE 13.1% / 18.0% Strong capital efficiency

Dividend Yield 0.94% Modest income, consistent payout

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Debt-to-Equity 0.00 Debt-free — excellent

EPS ₹10.6 Stable earnings

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Book Value ₹82.0 P/B ~5.9 — premium valuation

Qtr Profit Var +4.5% Steady performance

📈 Technical & Trend Indicators

Current Price: ₹481

DMA50 / DMA200: ₹508 / ₹510 — bearish crossover

RSI: 39.1 — approaching oversold zone

MACD: -8.07 — bearish momentum

Volume: Below average — low conviction

📌 Ideal Entry Price Zone

Accumulation Zone: ₹440–₹460

Near 52-week support of ₹417

RSI suggests oversold territory

Entry below ₹460 offers valuation comfort

🧭 If You Already Hold SAREGAMA

🕒 Holding Strategy

Time Horizon: 2–4 years

Catalysts

Monetization of music rights (OTT, YouTube, licensing)

Carvaan product refresh and expansion

Strategic acquisitions (e.g., Pocket Aces stake increase

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🚪 Exit Strategy

Partial Profit Booking: Near ₹590–₹620 (analyst targets

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Stop-Loss: ₹415 (52W low breach)

Re-evaluate: If PEG stays above 4 and ROE drops below 10%

🧠 Final Verdict

Saregama is a high-quality media play with strong ROE, zero debt, and a diversified business model. However, the high valuation (P/E & PEG) and recent technical weakness suggest waiting for a better entry. It’s a hold for existing investors and a buy-on-dips for new entrants.

Would you like a comparison with Tips Industries or Zee Entertainment to explore alternatives in the media space?

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bing.com

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www.valueresearchonline.com

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stockanalysis.com

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trendlyne.com

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