Key Events This Week
2 Feb: Stock opens at Rs.329.60, down 3.30% amid broad market weakness
3 Feb: Shares hit 52-week low of Rs.316.9, closing at Rs.327.70 (-0.58%)
5 Feb: Valuation concerns surface as P/E ratio climbs to 32.74
6 Feb: Week closes at Rs.329.00, down 1.60% on the day
Monday, 2 February 2026: Weak Start Amid Broader Market Decline
Saregama India Ltd opened the week at Rs.329.60, down 3.30% from the previous Friday’s close of Rs.340.85. This decline came alongside a 1.03% drop in the Sensex, which closed at 35,814.09. The stock’s volume was relatively low at 8,219 shares, indicating subdued investor interest. The broader market weakness set a cautious tone for the stock, which was already under pressure from recent earnings concerns and valuation questions.
Tuesday, 3 February 2026: New 52-Week Low Amid Earnings and Sector Underperformance
On 3 February, Saregama’s shares hit a fresh 52-week low of Rs.316.9 during intraday trading, closing at Rs.327.70, down 0.58% on the day. This marked a cumulative decline of 3.77% over the prior three sessions. The stock underperformed the Media & Entertainment sector, which gained 2.88%, and the Sensex, which surged 2.63% to 36,755.96. The day’s trading reflected investor concerns following the company’s Q3 FY26 results, which revealed a 21.5% drop in net sales to Rs.230.03 crore and a 12.6% decline in profit after tax to Rs.43.76 crore. Despite margin resilience, the revenue contraction weighed heavily on sentiment.
Wednesday, 4 February 2026: Stabilisation with Marginal Gains
The stock showed tentative signs of stabilisation on 4 February, inching up 0.17% to close at Rs.328.25 on a volume of 28,131 shares. The Sensex also advanced modestly by 0.37% to 36,890.21. This slight recovery followed the previous day’s sharp lows, but the stock remained below key moving averages, signalling ongoing bearish momentum. Investors appeared cautious, awaiting further clarity on earnings outlook and valuation.
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Thursday, 5 February 2026: Valuation Concerns Surface Amid Price Recovery
Saregama’s shares rebounded 1.86% to Rs.334.35 on 5 February, despite the Sensex retreating 0.53% to 36,695.11. This gain was supported by a moderate volume of 16,687 shares. However, the day also saw renewed focus on the stock’s valuation metrics, which have shifted from fair to expensive territory. The price-to-earnings ratio climbed to 32.74, while the price-to-book value ratio reached 3.81. Elevated enterprise value multiples, including EV/EBITDA at 19.43 and EV/EBIT at 25.96, further highlighted the premium pricing. These stretched multiples contrasted with the company’s subdued earnings growth and recent revenue decline, raising questions about price attractiveness.
Friday, 6 February 2026: Week Ends with Slight Decline
The week concluded with Saregama’s shares slipping 1.60% to Rs.329.00 on 6 February, on a volume of 21,761 shares. The Sensex closed marginally higher by 0.10% at 36,730.20. The stock’s weekly performance reflected a 3.48% decline from the previous Friday’s close, underperforming the Sensex’s 1.51% gain. Despite solid profitability metrics such as a return on capital employed of 20.30% and a dividend yield of 2.74%, the stock’s premium valuation and recent earnings softness weighed on investor sentiment.
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-02 | Rs.329.60 | -3.30% | 35,814.09 | -1.03% |
| 2026-02-03 | Rs.327.70 | -0.58% | 36,755.96 | +2.63% |
| 2026-02-04 | Rs.328.25 | +0.17% | 36,890.21 | +0.37% |
| 2026-02-05 | Rs.334.35 | +1.86% | 36,695.11 | -0.53% |
| 2026-02-06 | Rs.329.00 | -1.60% | 36,730.20 | +0.10% |
Key Takeaways
Subdued Earnings and Revenue Decline: The 21.5% drop in net sales and 12.6% fall in PAT for Q3 FY26 weighed heavily on the stock, contributing to the 52-week low and ongoing downtrend.
Valuation Premiums Raise Concerns: Despite earnings softness, the stock trades at elevated multiples with a P/E of 32.74 and P/BV of 3.81, signalling stretched valuation relative to fundamentals and peers.
Relative Underperformance: The stock’s 3.48% weekly decline contrasts with the Sensex’s 1.51% gain, highlighting investor caution amid sector strength and broader market resilience.
Promoter Confidence and Financial Strength: The company remains debt-free with a solid ROCE of 20.30% and a dividend yield of 2.74%. Promoters have increased their stake to 60.39%, indicating confidence despite market headwinds.
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Conclusion
Saregama India Ltd’s share price performance over the week ending 6 February 2026 reflects a challenging environment marked by earnings weakness, valuation pressures, and relative underperformance against the Sensex. The stock’s fall to a 52-week low early in the week underscored investor concerns, while a modest midweek recovery was insufficient to offset the broader downtrend. Elevated valuation multiples, including a P/E ratio above 32, suggest that the market is pricing in expectations that may be difficult to meet given recent revenue declines.
Despite these headwinds, the company’s strong balance sheet, zero debt, and reasonable profitability metrics provide some cushion. The increase in promoter shareholding to over 60% signals internal confidence, though the downgraded Mojo Grade to Sell reflects a cautious market stance. Investors should monitor upcoming earnings releases and sector developments closely, as the current premium valuation and subdued price action warrant prudence.
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