SAREGAMA - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 3.4

Saregama shows strong fundamentals and long-term growth potential, but weak technicals and declining profits suggest caution. Entry near ₹440–445 is ideal; if already holding, consider exiting near ₹475–490.

🔷 Positive

• 📉 Low RSI: 40.1 indicates near-oversold conditions, potential for short-term bounce
• 📈 Strong ROCE & ROE: ROCE at 18.0% and ROE at 13.4% reflect efficient capital use
• 📉 Zero Debt: Debt-to-equity ratio of 0.00 shows financial prudence
• 📈 FII Buying: Foreign institutional holding increased by 0.14%
• 📊 Dividend Yield: 0.98% adds to investor appeal

⚠️ Limitation

• 📉 MACD Negative: -5.09 indicates bearish momentum
• 📉 Below DMA Levels: Price is under both 50 DMA (₹470) and 200 DMA (₹492)
• 📉 High PEG Ratio: 4.00 suggests expensive valuation relative to growth
• 📉 Low Volume: Current volume (68K) barely matches 1-week average (66K)

🚫 Company Negative News

• 📉 Sequential PAT Decline: PAT dropped from ₹55.5 Cr to ₹40.2 Cr QoQ
• 📉 DII Selling: Domestic institutional holding declined by 0.07%

✅ Company Positive News

• 📈 Revenue Beat: Q2 revenue beat estimates by 8.9%

  Simply Wall St

• 🎶 Content Expansion: ₹1,000 Cr investment planned in music content FY25–FY27

  concallanalysis.com

• 📺 Diversification: Expanding into live events, video content, and artist management

  concallanalysis.com

• 💡 Board Meeting Scheduled: Interim dividend and Q2 results to be announced on Nov 5

  The Economic Times

🏭 Industry

• 🎧 Entertainment Sector: High PE (43.9) reflects growth expectations but also valuation risk
• 📈 Digital Monetization: Sector shifting toward streaming, licensing, and regional content

🧾 Conclusion

Saregama is a moderate swing trade candidate with strong fundamentals and strategic growth plans. However, weak technical indicators and declining profits suggest waiting for a dip near ₹440–445 before entering. If already holding, consider exiting near ₹475–490. Watch for Q2 results and dividend announcement for momentum triggers.

Sources

The Economic Times

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