The stock’s recent performance reflects a downward trend over the past year, with a return of -14.37%, contrasting with the Sensex’s 9.53% gain over the same period. The Sensex itself experienced volatility today, opening 91.42 points higher but eventually falling by 365.94 points to trade at 84,676.43, which is 0.32% lower. Notably, the Sensex remains close to its 52-week high of 85,290.06, trading 0.72% below that peak and maintaining a bullish stance above its 50-day and 200-day moving averages.
Saregama India’s share price currently trades below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating sustained pressure across short and long-term technical indicators. The stock’s 52-week high was Rs.603.95, highlighting the extent of the recent decline.
Holding Saregama India from Media & Entertainment? See if there's a smarter choice! SwitchER compares it with peers and suggests superior options across market caps and sectors!
- Peer comparison ready
- Superior options identified
- Cross market-cap analysis
Examining the quarterly financials reveals a subdued performance. Net sales for the quarter stood at Rs.230.03 crore, representing a decline of 21.5% compared to the average of the previous four quarters. Profit after tax (PAT) was Rs.43.76 crore, down by 12.6% relative to the prior four-quarter average. Similarly, profit before tax excluding other income (PBT less OI) was Rs.48.63 crore, reflecting an 8.0% reduction against the same benchmark.
These figures suggest a period of flat results for Saregama India, which may have contributed to the stock’s downward momentum. The company’s return on equity (ROE) is reported at 12%, while its price-to-book value ratio stands at 4.6, indicating a valuation that some may consider on the higher side relative to book value. However, when compared to its peers’ historical valuations, Saregama India’s current valuation appears to be within a fair range.
Over the past year, despite the negative stock return, the company’s profits have shown a rise of 6.1%. The price/earnings to growth (PEG) ratio is noted at 6.4, which provides insight into the relationship between the company’s valuation and its earnings growth rate.
Longer-term performance metrics also highlight challenges. The stock has underperformed the BSE500 index over the last three years, one year, and three months, indicating below-par returns relative to a broad market benchmark.
From a capital structure perspective, Saregama India maintains a low average debt-to-equity ratio of zero, signalling minimal reliance on debt financing. Institutional investors hold 21.98% of the company’s shares, reflecting a significant stake by entities with substantial analytical resources.
Is Saregama India your best bet? SwitchER suggests better alternatives across peers, market caps, and sectors. Discover stocks that could deliver more for your portfolio!
- Better alternatives suggested
- Cross-sector comparison
- Portfolio optimization tool
In summary, Saregama India’s recent fall to a 52-week low of Rs.394.95 reflects a combination of subdued quarterly sales and profit figures, valuation considerations, and technical indicators showing the stock trading below all key moving averages. While the broader market indices maintain a relatively stronger position, the stock’s performance over the past year and longer periods has lagged behind key benchmarks. The company’s low debt levels and institutional shareholding provide some stability, yet the current price level underscores the challenges faced within the Media & Entertainment sector.
