Accordingly, if an investor invested in a stock 10 years back Rs. 10,000 and had invested, the investment would have increased to Rs. 5 lakh would have been, according to analysis by ET Markets.
However, in the recent past, the stock has not generated the returns seen in previous years. For instance, in the past six months, the shares have risen 56% and have gained nearly 42% over the past one-year period.
Saregama India, formerly known as The Gramophone Company of India, is an RPSG group of companies that owns the largest music archives in India and is one of the largest in the world.
Owning nearly 50% of all recorded music in India also makes Saregama the most authentic repository of the country’s musical heritage. The company has also expanded into other branches of entertainment – film and series production, live events and music-based consumer products.
As per the shareholding pattern available with the exchanges, promoters hold a majority of 59% of the company, while public shareholders own the remaining 41%.
Among public shareholders, mutual funds do not have any significant stake. However, marquee foreign investors including ADIA and the Singapore government own just over 15%.
In the latest March 2024 quarter, the company’s fourth quarter operating income was Rs. 263 crore, growing at 29% on a year-on-year as well as quarter-on-quarter basis to Rs. with a strong Adjusted EBITDA of 86.4. Crore company with 31% growth year-on-year to Rs. Delivered PBT of 76 crores.
Technical Forecast – What Should Investors Do?
Technically, on the daily chart, analysts are observing a higher-high formation and furthermore the momentum indicator, i.e. RSI, is positively poised. The stock has been outperforming the benchmark indices.
“Considering all these parameters, it is clear that the stock is likely to continue its upward momentum. Therefore, one can hold the stock at the current market price (CMP) of Rs 568 with a stop loss at Rs 536 and its target range. 600-620,” said Milin Vasudev, senior technical analyst at Arihant Capital.
(With data inputs from Ritesh Presswala)
(Disclaimer: Recommendations, suggestions, opinions and views given by experts are their own. These do not represent the views of Economic Times)
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