Saregama India Reports Lowest Operating Cash Flow Amid Market Reassessment in Q2 FY24-25

Saregama India has recently undergone an adjustment in evaluation, reflecting a reassessment of its market position and financial metrics. The company, a notable player in the lifestyle industry, has reported operating cash flow of Rs 93.25 crore for the second quarter of FY24-25, which is the lowest level recorded to date. Additionally, the Return on Capital Employed (ROCE) has been noted at 16.58%, while profit before tax (PBT) has shown a decline of 8.3%, totaling Rs 46.77 crore.
Despite achieving a return on equity (ROE) of 12.1, Saregama India is perceived to have a high valuation, as indicated by its price-to-book ratio of 6.4. Over the past year, the stock has delivered a return of 44.25%, although profits have experienced a slight decline of 0.3%. The company maintains a low debt-to-equity ratio of 0, which suggests a degree of financial stability. However, the technical trend has shifted to a sideways movement, indicating a lack of clear price momentum and a transition from a mildly bullish stance since mid-January. Institutional holdings are currently at 21.31%, reflecting a modest increase of 0.86% from the previous quarter.

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