Saregama At 'Turning Point' SEBI Analyst Sees Breakout Potential Driven By Bold Growth Plans

Saregama is being viewed as entering a critical phase, with strong financial momentum, ambitious growth targets, and a major content push positioning the company for its next leg. 

While the stock performance has been underwhelming this year, losing 7% in the last six months, SEBI-registered analyst Mayank Singh Chandel highlighted that with ₹10,000 crore earmarked for content, the company is positioning itself to expand ownership of India's entertainment catalog. He remarked that from vinyl records to Carvaan to streaming, Saregama has continually adapted to changing consumer tastes. 

Fundamental View

The music and entertainment firm reported a 46% rise in revenue to ₹11,713 crore and 18% growth in EBITDA to ₹3,566 crore, alongside plans to invest ₹10,000 crore in new content over the next three years.

Chandel said a diversified mix of music, video, retail, and live events supported profitability and revenue growth. Music continues to drive 52% of revenue, but other segments are gaining traction.

He noted that the company aims to double revenue in four years and expand profit before tax by 2.2–2.5 times, with projections for music revenue to grow at a 20–23% CAGR, while events could expand by 25–30% annually.

According to Chandel, Saregama's debt-free balance sheet and 13% return on equity underpin its growth strategy.

Technical View

On the stock front, Chandel said shares have been consolidating since 2022, though they remain above the 200-week exponential moving average (EMA), signaling a positive long-term trend. 

With the 50-week and 21-week EMAs closely aligned, the stock remains range-bound. He added that the relative strength index (RSI) at 46.9 indicates neutral momentum.

Trading Strategy

Chandel observed that rising trading volumes since May 2023 suggest gradual accumulation. 

He said investors could start small at current levels, add more only if the stock breaks above its range, and keep a stop loss just below the 200-week EMA to manage risk.

What Is The Retail Mood?

On Stocktwits, retail sentiment was 'neutral' amid 'normal' message volume.

Saregama's stock has declined 0.6% so far in 2025.

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