SAREGAMA - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.4
| Stock Code | SAREGAMA | Market Cap | 6,511 Cr. | Current Price | 338 ₹ | High / Low | 603 ₹ |
| Stock P/E | 32.3 | Book Value | 86.1 ₹ | Dividend Yield | 1.33 % | ROCE | 18.0 % |
| ROE | 13.4 % | Face Value | 1.00 ₹ | DMA 50 | 345 ₹ | DMA 200 | 407 ₹ |
| Chg in FII Hold | -2.64 % | Chg in DII Hold | -0.12 % | PAT Qtr | 58.1 Cr. | PAT Prev Qtr | 47.6 Cr. |
| RSI | 49.2 | MACD | 1.69 | Volume | 1,97,537 | Avg Vol 1Wk | 8,31,921 |
| Low price | 307 ₹ | High price | 603 ₹ | PEG Ratio | 3.03 | Debt to equity | 0.00 |
| 52w Index | 10.4 % | Qtr Profit Var | -5.49 % | EPS | 10.2 ₹ | Industry PE | 34.7 |
📊 SAREGAMA trades at ₹338, slightly below its 50DMA (₹345) and well below its 200DMA (₹407). Technical indicators (RSI 49.2, MACD 1.69) suggest neutral-to-slightly positive momentum. Fundamentals show decent ROCE and ROE, zero debt, and a healthy dividend yield, but valuations are slightly high and institutional investors have reduced stakes. This makes SAREGAMA a moderately good swing trade candidate.
💡 Optimal Entry Price: Around ₹330–340 (near current support).
🔔 Exit Strategy if Holding: Consider exiting near ₹360–370 (around 50DMA resistance) unless momentum strengthens further.
✅ Positive
- ROCE at 18% and ROE at 13.4% show solid profitability.
- Debt-to-equity ratio of 0.00 indicates strong financial stability.
- Dividend yield of 1.33% provides investor support.
- Quarterly PAT improved from ₹47.6 Cr. to ₹58.1 Cr.
⚠️ Limitation
- Stock P/E of 32.3 is slightly above industry PE of 34.7, showing fair but not cheap valuation.
- PEG ratio of 3.03 suggests overvaluation relative to growth.
- Quarterly profit variation of -5.49% indicates slowing momentum.
- Volume is lower than average, showing reduced trading interest.
📉 Company Negative News
- Price trading below 200DMA, indicating long-term weakness.
- FII holdings decreased by 2.64% and DII holdings by 0.12%.
📈 Company Positive News
- Quarterly PAT growth despite industry challenges.
- Strong dividend yield compared to peers.
- Zero debt enhances financial resilience.
🏭 Industry
- Industry PE at 34.7, close to SAREGAMA’s valuation.
- Media and entertainment sector in India is growing with digital expansion.
- High competition and content costs remain challenges.
🔎 Conclusion
SAREGAMA is financially stable with strong ROCE, ROE, and zero debt, but faces valuation pressure and reduced institutional confidence. It is a moderately good swing trade candidate if entered near ₹330–340 with a target around ₹360–370. Risk management is important due to slowing profit growth and long-term technical weakness.