SAREGAMA - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.2
| Stock Code | SAREGAMA | Market Cap | 6,325 Cr. | Current Price | 328 ₹ | High / Low | 603 ₹ |
| Stock P/E | 31.4 | Book Value | 86.1 ₹ | Dividend Yield | 1.37 % | ROCE | 18.0 % |
| ROE | 13.4 % | Face Value | 1.00 ₹ | DMA 50 | 359 ₹ | DMA 200 | 431 ₹ |
| Chg in FII Hold | -2.64 % | Chg in DII Hold | -0.12 % | PAT Qtr | 58.1 Cr. | PAT Prev Qtr | 47.6 Cr. |
| RSI | 39.7 | MACD | -8.88 | Volume | 4,28,903 | Avg Vol 1Wk | 3,93,006 |
| Low price | 317 ₹ | High price | 603 ₹ | PEG Ratio | 2.95 | Debt to equity | 0.00 |
| 52w Index | 3.97 % | Qtr Profit Var | -5.49 % | EPS | 10.2 ₹ | Industry PE | 38.2 |
📊 SAREGAMA shows limited potential for swing trading at present. The current price (328 ₹) is below both the 50 DMA (359 ₹) and 200 DMA (431 ₹), indicating bearish momentum. RSI at 39.7 suggests the stock is approaching oversold territory, while MACD (-8.88) confirms negative momentum. Fundamentals are decent with ROCE (18.0%) and ROE (13.4%), but declining quarterly profit (-5.49%) and reduced institutional holdings (FII -2.64%, DII -0.12%) raise caution. Dividend yield of 1.37% provides some stability, though valuations remain slightly stretched compared to industry PE (38.2).
💡 Optimal Entry Price: Around 320–325 ₹ (near support zone).
🚪 Exit Strategy: If already holding, consider exiting near 360–370 ₹ (short-term resistance at 50 DMA) or if RSI rises above 55 with improving momentum.
✅ Positive
- Strong ROCE (18.0%) and ROE (13.4%) indicate efficient capital use.
- EPS of 10.2 ₹ supports earnings visibility.
- Dividend yield of 1.37% provides passive returns.
- Debt-to-equity ratio of 0.00 shows financial stability.
⚠️ Limitation
- Stock trading below both 50 DMA and 200 DMA indicates bearish trend.
- Quarterly profit declined (-5.49%), showing weakness.
- PEG ratio of 2.95 suggests expensive valuation relative to growth.
- Institutional holdings decreased (FII -2.64%, DII -0.12%).
📉 Company Negative News
- Sequential decline in quarterly PAT from 58.1 Cr. to 47.6 Cr.
- Weak technical indicators (negative MACD, RSI near oversold).
📈 Company Positive News
- Strong efficiency ratios (ROCE and ROE).
- Dividend yield supports investor confidence.
- Debt-free balance sheet enhances financial resilience.
🏭 Industry
- Industry PE at 38.2 vs SAREGAMA’s 31.4 shows fair valuation.
- Media and entertainment sector remains cyclical but supported by digital content demand.
🔎 Conclusion
SAREGAMA is a cautious swing trade candidate. Entry near 320–325 ₹ offers limited upside, with exit targets around 360–370 ₹. Strong fundamentals and dividend yield provide stability, but weak technical momentum and declining profits suggest cautious trading. Best suited for short-term traders looking for rebound opportunities rather than sustained momentum.