SAREGAMA - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:02 am

Swing Trade Rating: 3.3

📊 Based on the given parameters, SAREGAMA shows moderate potential for swing trading. The stock is trading well below its 50 DMA (404 ₹) and 200 DMA (463 ₹), reflecting bearish momentum. RSI at 33.9 indicates oversold conditions, while MACD at -14.2 confirms downward pressure. The optimal entry price would be near 345–350 ₹ if signs of reversal appear. If already holding, consider exiting around 380–390 ₹ on any rebound, unless momentum strengthens significantly.

✅ Positive

• 📈 Reasonable valuation with P/E (33.2) below industry average (39.2)
• 💹 Strong ROCE (18.0%) and ROE (13.4%) indicate efficient capital use
• 📊 Dividend yield of 1.31% provides income support
• 📈 EPS of 10.6 ₹ supports fundamental strength
• 📈 FII holdings increased slightly (+0.14%), showing foreign investor interest

⚠️ Limitation

• 📉 Stock trading far below DMA levels, showing weak technicals
• 📉 Quarterly profit variation (-2.87%) indicates earnings pressure
• 📉 PEG ratio of 3.11 suggests overvaluation relative to growth
• 📉 Current trading volume below weekly average, showing reduced participation

🚨 Company Negative News

• 📉 PAT declined slightly (47.6 Cr. vs 40.2 Cr. previously)
• 📉 DII holdings decreased (-0.07%), reflecting reduced domestic institutional support
• 📉 52-week index at only 4.40% shows severe underperformance

🌟 Company Positive News

• 📈 Dividend yield of 1.31% provides steady income for investors
• 📈 Strong efficiency metrics (ROCE 18.0%, ROE 13.4%) support long-term fundamentals
• 📈 Slight increase in FII holdings (+0.14%) shows foreign confidence

🏭 Industry

• 📊 Industry PE at 39.2, higher than SAREGAMA’s valuation, suggesting relative undervaluation
• 📈 Media and entertainment sector remains cyclical, offering trading opportunities with sentiment shifts

📌 Conclusion

SAREGAMA is a cautious candidate for swing trading. While efficiency metrics and dividend yield provide support, weak technicals and earnings pressure limit upside potential. Optimal entry is near 345–350 ₹, with exit around 380–390 ₹ if already holding. Traders should monitor RSI recovery and volume trends before fresh positions.

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