SAREGAMA - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.7
| Stock Code | SAREGAMA | Market Cap | 6,758 Cr. | Current Price | 351 ₹ | High / Low | 603 ₹ |
| Stock P/E | 33.6 | Book Value | 86.1 ₹ | Dividend Yield | 1.28 % | ROCE | 18.0 % |
| ROE | 13.4 % | Face Value | 1.00 ₹ | DMA 50 | 345 ₹ | DMA 200 | 408 ₹ |
| Chg in FII Hold | -2.64 % | Chg in DII Hold | -0.12 % | PAT Qtr | 58.1 Cr. | PAT Prev Qtr | 47.6 Cr. |
| RSI | 57.2 | MACD | 2.13 | Volume | 2,50,403 | Avg Vol 1Wk | 9,07,370 |
| Low price | 307 ₹ | High price | 603 ₹ | PEG Ratio | 3.15 | Debt to equity | 0.00 |
| 52w Index | 14.8 % | Qtr Profit Var | -5.49 % | EPS | 10.2 ₹ | Industry PE | 36.2 |
📊 Chart & Trend Analysis: SAREGAMA is trading at ₹351, above its 50 DMA (₹345) but below the 200 DMA (₹408), indicating short-term strength but medium-term weakness. RSI at 57.2 suggests moderate momentum, not overbought. MACD at 2.13 shows a mild bullish crossover. Bollinger Bands indicate price moving toward the upper band, hinting at short-term upward bias.
📈 Volume Trends: Current volume (2,50,403) is significantly below the 1-week average (9,07,370), showing weak participation and limited conviction in the rally.
🔑 Momentum Signals: Short-term momentum is positive, but sustainability depends on volume recovery. Support lies around ₹340–₹345, while resistance is near ₹370–₹380.
💰 Entry Zone: ₹340–₹350 (near 50 DMA support).
📉 Exit Zone: ₹370–₹380 (resistance near upper trendline).
📌 Trend Status: The stock is consolidating with bullish bias, showing potential for continuation if volumes improve.
Positive
- EPS of ₹10.2 with profitability.
- ROCE at 18% and ROE at 13.4% indicate strong efficiency.
- Debt-free balance sheet (Debt-to-equity 0.00).
- Dividend yield of 1.28% provides income support.
Limitation
- PEG ratio of 3.15 suggests expensive valuation relative to growth.
- Trading below 200 DMA, showing medium-term weakness.
- Volume significantly below average, limiting momentum strength.
Company Negative News
- Quarterly profit variation declined (-5.49%).
- FII holdings decreased by 2.64% and DII holdings by 0.12%, showing reduced institutional confidence.
Company Positive News
- PAT improved from ₹47.6 Cr. to ₹58.1 Cr. quarter-on-quarter.
- Dividend yield remains attractive compared to peers.
Industry
- Industry PE at 36.2, slightly higher than SAREGAMA’s P/E of 33.6, showing fair valuation.
- Media and entertainment sector remains resilient with digital growth opportunities.
Conclusion
⚖️ SAREGAMA is consolidating with bullish undertones, supported by positive MACD and trading above 50 DMA. Optimal strategy: accumulate near ₹340–₹350 support and consider profit booking around ₹370–₹380 resistance. Long-term investors should monitor institutional participation and profit growth trends, but fundamentals remain stable with strong ROCE and debt-free status.