Fundamental Analysis

SAREGAMA INDIA LTD. 

Ticker : 532163
BUY : Rs 559.95
Target : Rs 620

Saregama India Ltd is a reputed audio entertainment company in India. The company's segments include music, films/TV serials, publication, and marketing support services. On a consolidated quarterly front, the net sales fell by 39.25 per cent in Q1FY21 to Rs 76.49 crore from Rs 125.90 crore in Q1FY20. The company reported an operating profit of Rs 24.24 crore in Q1FY21, up by 634.55 per cent from Rs 3.30 crore reported in Q1FY20. Similarly, the net profit increased by 1,370.97 per cent from Rs 1.24 crore losses incurred in Q1FY20 to Rs 15.76 crore gained in Q1FY21. The company’s quarterly performance has been very impressive. Recently, Saregama launched a new product namely, Carvaan Mini Kids, which is the ultimate solution for parents worrying about kids’ increasing screen time. The company also partnered with global players like ShareChat and Moj. ShareChat and Moj users can now add music to their posts using songs from Saregama’s library. Hence, we recommend a BUY.