Recent Price Movement and Market Context
On 5 December 2025, Saregama India’s stock touched an intraday low of Rs.360.75, representing a 2.09% decline on the day and underperforming its sector by 0.63%. The stock has been trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum. Over the past six trading sessions, the stock has recorded a cumulative return of -9.02%, underscoring the persistent selling pressure.
In contrast, the broader market has shown resilience. The Sensex, after an initial negative opening, recovered to close at 85,332.88 points, up 0.08% on the day and just 0.97% shy of its 52-week high of 86,159.02. The index is trading above its 50-day moving average, which itself is positioned above the 200-day moving average, indicating a bullish trend for the benchmark. Mega-cap stocks have been leading this recovery, further highlighting the divergence between Saregama India’s performance and the overall market.
Financial Performance and Valuation Metrics
Saregama India’s recent quarterly results reveal a subdued financial trajectory. Net sales for the quarter stood at Rs.230.03 crore, reflecting a 21.5% reduction compared to the average of the previous four quarters. Profit after tax (PAT) was recorded at Rs.43.76 crore, down 12.6% relative to the prior four-quarter average. Similarly, profit before tax excluding other income (PBT less OI) was Rs.48.63 crore, representing an 8.0% decline over the same period.
The company’s return on equity (ROE) is reported at 12%, while the price-to-book value ratio is approximately 4.3, suggesting a valuation that is relatively elevated when compared to historical averages within its peer group. Despite the stock’s negative return of 29.90% over the past year, the company’s profits have shown a 6.1% increase during this timeframe. The price/earnings to growth (PEG) ratio stands at 5.8, indicating a valuation that may not be fully aligned with earnings growth.
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Long-Term Performance and Sector Comparison
Over the last twelve months, Saregama India’s stock has generated a return of -29.90%, significantly lagging the Sensex’s 4.36% gain over the same period. The stock has also underperformed the BSE500 index across multiple time horizons, including the last three years, one year, and three months. This underperformance reflects challenges in maintaining competitive positioning within the Media & Entertainment sector.
The stock’s 52-week high was Rs.603.95, indicating a substantial decline of approximately 40% from that peak to the current 52-week low. This wide price range highlights the volatility experienced by the stock over the past year.
Balance Sheet and Shareholding Structure
Saregama India maintains a conservative capital structure with an average debt-to-equity ratio of zero, indicating no reliance on debt financing. This low leverage position may provide some financial flexibility amid market fluctuations.
Institutional investors hold a significant stake in the company, accounting for 21.98% of the shareholding. These investors typically possess extensive resources and analytical capabilities to assess company fundamentals, which may influence trading activity and valuation perceptions.
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Summary of Current Market Position
Saregama India’s stock is currently navigating a challenging phase marked by a sustained decline to its lowest level in a year. The stock’s performance contrasts with the broader market’s modest gains and the Sensex’s proximity to its 52-week high. Financial results indicate contraction in sales and profits relative to recent quarterly averages, while valuation metrics suggest the stock is trading at a premium relative to some historical benchmarks.
The company’s low leverage and notable institutional ownership provide some structural stability, though the stock’s recent price action reflects prevailing market caution within the Media & Entertainment sector. Investors and market participants will continue to monitor the stock’s trajectory in the context of sector dynamics and broader economic conditions.
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