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Last Updated on: 22 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Saregama India Ltd

About the Company - Saregama India Ltd

Saregama India Ltd. is a Public Limited Listed company incorporated on 13/08/1946 and has its registered office in the State of West Bengal, India. Company’s Corporate Identification Number(CIN) is L22213WB1946PLC014346 and registration number is 014346. Currently Company is involved in the business activities of Sound recording and music publishing activities. Company’s Total Operating Revenue is Rs. 568.31 Cr. and Equity Capital is Rs. 19.28 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Entertainment & Media33, Jessore Road, Dum Dum, Kolkata West Bengal 700028co.sec@saregama.com
http://www.saregama.com
Management
NamePosition Held
Dr. Sanjiv GoenkaChairman & Non-Exe.Director
Mr. Vikram MehraManaging Director
Mrs. Preeti GoenkaNon Executive Director
Mrs. Avarna JainVice Chairman & Non Exe.Dire
Ms. Suhana MurshedInd. Non-Executive Director
Mr. Santanu BhattacharyaInd. Non-Executive Director
Mr. Arindam SarkarInd. Non-Executive Director
Mr. Noshir Naval FramjeeInd. Non-Executive Director
Mr. Umang KanoriaInd. Non-Executive Director

Saregama India Ltd. Share Price Update

Share PriceValue
Today₹357.80
Previous Day₹368.85

Basic Stock Data of Saregama India Ltd

Market Cap 7,872 Cr.
Current Price 408
High / Low466/288
Stock P/E42.1
Book Value 74.3
Dividend Yield0.93 %
ROCE17.6 %
ROE12.8 %
Face Value 1.00

Data Source: screener.in

Competitors of Saregama India Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
UFO Moviez India Ltd 597 Cr. 155174/57.259.4 71.50.00 %0.97 %4.95 % 10.0
Next Mediaworks Ltd 47.2 Cr. 7.058.86/3.80 11.40.00 %8.90 %% 10.0
New Delhi Television Ltd (NDTV) 1,631 Cr. 253308/167 42.90.00 %18.6 %15.7 % 4.00
Balaji Telefilms Ltd 1,250 Cr. 124132/35.043.0 42.20.00 %5.10 %10.9 % 2.00
Ortel Communications Ltd 4.12 Cr. 1.251.51/0.75 23.40.00 %13.4 %% 10.0
Industry Average130.06 Cr108.0620.4838.280%9.39%6.31%7.2

Saregama India Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales108134123105145150180166185185204163172
Expenses7194896810196129114128123154113111
Operating Profit37403437445451525763495061
OPM %34%30%28%35%31%36%29%31%31%34%24%31%35%
Other Income331935819101115171813
Interest1111111111210
Depreciation1122344446678
Profit before tax38415037455864566370585966
Tax %24%24%26%26%25%25%25%26%25%26%25%27%27%
Net Profit29323727344448424752444348
EPS in Rs1.621.812.131.561.942.252.502.172.412.722.272.252.49

Saregama India Ltd Quarterly Chart

Saregama India Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales161186177187222218357545521442576737725
Expenses142170160184209209320507461312377516502
Operating Profit1916172139363860130199221223
OPM %12%9%10%1%6%4%10%7%12%29%35%30%31%
Other Income77111121310561131235463
Interest4331023773565
Depreciation121336544356132128
Profit before tax107226916398560152204248253
Tax %91%-3%23%-5%25%46%27%36%28%25%25%25%
Net Profit1717679285444113153185187
EPS in Rs0.060.471.090.390.390.481.643.112.536.477.919.609.73
Dividend Payout %0%32%14%39%38%31%18%10%6%31%38%31%

Saregama India Ltd Profit & Loss Yearly Chart

Saregama India Ltd Growth

Compounded Sales Growth
10 Years:15%
5 Years:16%
3 Years:12%
TTM:4%
Compounded Profit Growth
10 Years:35%
5 Years:44%
3 Years:59%
TTM:-1%
Stock Price CAGR
10 Years:53%
5 Years:50%
3 Years:61%
1 Year:31%
Return on Equity
10 Years:13%
5 Years:15%
3 Years:16%
Last Year:13%

Saregama India Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital17171717171717171717191919
Reserves90951481501573223644113814881,3581,3231,416
Borrowings5961138431664101110
Other Liabilities6871657289137181217211277309361370
Total Liabilities2352452442472674805787096207841,6881,7041,805
Fixed Assets96891028485199197215219226278338375
CWIP0000000002240
Investments404040404013215114875137676239356
Other Assets1001161011241431492303453254207321,1241,074
Total Assets2352452442472674805787096207841,6881,7041,805

Saregama India Ltd Reserves and Borrowings Chart

Saregama India Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 4627332-4-19-36791909493
Cash from Investing Activity -3-4-4-1-400-6-5-136-630-154
Cash from Financing Activity -4-1-25-6-8-3938-72-49677-75
Net Cash Flow-30-2-420-7-10-424142-136

Saregama India Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days7072771067687757476726873
Inventory Days2891,030270266
Days Payable672838165114
Cash Conversion Cycle-31472771067687757476264173226
Working Capital Days18444277235978120104358498
ROCE %8%8%14%4%11%7%11%20%15%34%23%18%

Saregama India Ltd Financial Efficiency Indicators Chart

Saregama India Ltd Share Holding Pattern

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Promoters59.05%59.05%59.05%63.77%57.65%57.65%58.49%58.49%58.49%58.49%58.83%59.09%
FIIs4.39%6.94%7.36%9.52%16.55%17.09%17.30%17.24%17.47%17.70%17.79%17.12%
DIIs5.45%4.32%3.74%2.84%3.65%3.09%2.67%2.66%2.65%2.43%2.27%2.38%
Public29.38%29.11%29.27%23.66%21.96%22.07%21.44%21.47%21.23%21.13%20.86%21.15%
Others1.72%0.57%0.57%0.22%0.20%0.10%0.10%0.11%0.15%0.24%0.24%0.26%
No. of Shareholders18,51219,96430,14338,66341,03645,33160,75363,53063,53664,67169,38172,903

Saregama India Ltd Shareholding Pattern Chart

No. of Saregama India Ltd Shareholders

Saregama India Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Tata Retirement Savings Fund - Progressive Plan - Regular Plan4519600.9716.75
Union Innovation & Opportunities Fund2929621.9110.86
LIC MF Multi Cap Fund2164630.998.02
WhiteOak Capital Flexi Cap Fund1858550.246.89
WhiteOak Capital Mid Cap Fund1429960.375.3
360 ONE FlexiCap Fund1291111.454.79
360 ONE Balanced Hybrid Fund884500.653.28
WhiteOak Capital Multi Cap Fund521510.331.93
Nippon India Nifty Smallcap 250 Index Fund511150.21.89
Motilal Oswal Nifty Smallcap 250 Index Fund319430.21.18

Saregama India Ltd ROCE Trend

Saregama India Ltd EPS Trend

Saregama India Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue1.001.0010.0010.0010.00
Basic EPS (Rs.)9.638.4365.6125.2931.20
Diluted EPS (Rs.)9.638.4264.9725.2631.18
Cash EPS (Rs.)10.688.6068.3227.6233.11
Book Value[Excl.RevalReserv]/Share (Rs.)69.7871.62292.01230.14247.38
Book Value[Incl.RevalReserv]/Share (Rs.)69.7871.62292.01230.14247.38
Revenue From Operations / Share (Rs.)38.2030.11253.59299.25312.87
PBDIT / Share (Rs.)14.2411.5292.3641.1554.31
PBIT / Share (Rs.)13.1610.8489.1438.4852.41
PBT / Share (Rs.)12.8710.6087.1634.6348.64
Net Profit / Share (Rs.)9.607.9265.1024.9631.20
NP After MI And SOA / Share (Rs.)9.617.9164.5825.2131.08
PBDIT Margin (%)37.2738.2436.4213.7417.36
PBIT Margin (%)34.4535.9835.1512.8616.74
PBT Margin (%)33.6735.2034.3711.5715.54
Net Profit Margin (%)25.1226.2825.678.349.97
NP After MI And SOA Margin (%)25.1626.2825.468.429.93
Return on Networth / Equity (%)13.8011.0722.2511.0112.64
Return on Capital Employeed (%)18.1714.4827.5214.8918.56
Return On Assets (%)10.879.0414.357.087.63
Total Debt / Equity (X)0.000.000.000.020.14
Asset Turnover Ratio (%)0.410.460.620.750.82
Current Ratio (X)4.075.011.971.881.56
Quick Ratio (X)3.534.581.651.321.12
Dividend Payout Ratio (NP) (%)31.2037.9033.290.009.65
Dividend Payout Ratio (CP) (%)28.0534.9031.710.009.09
Earning Retention Ratio (%)68.8062.1066.710.0090.35
Cash Earning Retention Ratio (%)71.9565.1068.290.0090.91
Interest Coverage Ratio (X)48.0549.1346.6510.6814.41
Interest Coverage Ratio (Post Tax) (X)33.3834.7833.887.489.28
Enterprise Value (Cr.)5870.3592776.362636.35344.471090.73
EV / Net Operating Revenue (X)7.97159.795.970.662.00
EV / EBITDA (X)21.38417.8516.384.8011.53
MarketCap / Net Operating Revenue (X)8.65160.346.290.651.89
Retention Ratios (%)68.7962.0966.700.0090.34
Price / BV (X)4.7567.575.490.852.41
Price / Net Operating Revenue (X)8.65160.346.290.651.89
EarningsYield0.020.000.040.120.05

Saregama India Ltd Profitability Ratios (%)

Saregama India Ltd Liquidity Ratios

Saregama India Ltd Liquidity Ratios (%)

Saregama India Ltd Interest Coverage Ratios (X)

Saregama India Ltd Valuation Ratios

Fair Value / Intrinsic Value of Saregama India Ltd

Fair Value: ₹404.11

The stock is overvalued by 0.95% compared to the current price ₹408

*Investments are subject to market risks

Strength and Weakness of Saregama India Ltd

StrengthWeakness
  1. The company has higher reserves (515.62 cr) compared to borrowings (18.54 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (388.77 cr) and profit (85.46 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 40.81 and average Dividend Yield of 27.04%.
  2. The stock has a low average ROCE of 14.42%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 65.17, which may not be favorable.
  4. The stock has a high average Cash Conversion Cycle of 82.67, which may not be favorable.

Should I Buy Saregama India Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Saregama India Ltd:
    1. Net Profit Margin: 25.12%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 18.17% (Industry Average ROCE: 26.3%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. Interest Coverage Ratio (Post Tax): 33.38
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    4. Quick Ratio: 3.53
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    5. ✗ Stock P/E: 42.1 (Industry average Stock P/E: 8.62)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    6. ✓ Total Debt / Equity: 0.00
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Saregama India Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE