Saregama India Limited

Communication Services — Entertainment · NSE

₹508.00+₹15.35 (+3.12%)

DalalBaazaar Score

56 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by high debt relative to equity, negative free cash flow, small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

The 60-second version of Saregama India Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Saregama India Limited operates as an entertainment company in India and internationally. It operates in four segments: Music, Artist Management, Video, and Events.

IndustryEntertainment

SectorCommunication Services

Employees279

Annual revenue₹955 Cr

How does it make money?

Turns over ₹955 Cr a year. Of every ₹100 of sales, about ₹22 reaches shareholders as profit, with ₹39 left at the operating level before interest, tax and depreciation. Each of its 279 employees supports ₹3.42 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹3.42 Cr

Who are its competitors?

The closest listed comparisons in its industry are BHARTI AIRTEL LIMITED, VODAFONE IDEA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 16.0% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE20.2%

What is the outlook?

4 analysts covering the stock expect revenue to grow about 16.0% and earnings to grow about 19.6% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+16.0%

Est. earnings growth+19.6%

Analysts4

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +35% while net margin moved -17% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+35%

Margin effect-17%

DalalBaazaar Score

56/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ P/E of 44.2x is demanding — it needs sustained high growth to justify
• P/E is close to its own historical median of 45.1x
✗ P/B of 5.86x is a steep premium to book

Quality vs. Valuation

Company Quality

61/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

32/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

44.2x

3Y Median

45.1x

40 monthly readings · mean 44.1x · range 30.1x–61.5x

Sector Median

21.7x

median of 2 sector peers

🟡Currently trading close to its 3y median of 45.1x — the market is paying about what it usually pays for this company.

⚠️Against its sector it trades 103% above the peer median of 21.7x.

vs. its own history

Fair

45.1x median over 40 months · -2%

vs. sector peers

Expensive

21.7x median of 2 peers · +103%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

26.3x

PEG

11.73

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 35.9% to 39.1% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 18.2% to 16.0% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 10087% over 3 years, from ₹1 Cr to ₹73 Cr.
🔴High leverageFinancial
Debt/Equity of 4.28x — earnings must service borrowings before shareholders see anything.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹114 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 35.9% to 39.1%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 4.28x. Interest is payable whether or not the business has a good year.
A premium to the sector to defend
It trades 103% above the peer median. That premium needs a reason that persists, or it closes.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 8% a year✓ 10.6% CAGR
Latest reported year was 27.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 37%✓ 39.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹114 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 13%✓ 16.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 3 neutral · 4 weak

Market Cap

₹9,752 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

44.2x

Expensive

Expensive — verify against sector peers

P/B Ratio

5.86x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹11.5

Profitable

Profitable on a per-share basis

ROE

12.2%

Moderate

Moderate capital efficiency

ROCE

16.0%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

4.28x

High

High leverage

Revenue Growth (YoY)

27.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

41.6%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.89%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹114 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

32.5x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

26.4%

Good

Healthy core-business profitability

Net Margin

21.3%

Good

Strong bottom-line conversion

Current Ratio

1.75

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.65

Defensive

Steadier than the market

52W Range Position

75%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

497.8 / 502.1

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

52.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹706 Cr	₹758 Cr	₹1,167 Cr	₹955 Cr	+10.6%
EBITDA	₹253 Cr	₹303 Cr	₹295 Cr	₹373 Cr	+13.7%
EBITDA Margin	35.9%	40.0%	25.3%	39.1%	—
PAT (Net Profit)	₹185 Cr	₹198 Cr	₹204 Cr	₹207 Cr	+3.8%
EPS	₹9.63	₹10.27	₹10.61	₹10.73	+3.7%
ROE	13.8%	13.4%	12.9%	12.2%	—
ROCE	18.2%	15.7%	16.8%	16.0%	—
Total Debt	₹1 Cr	₹5 Cr	₹3 Cr	₹73 Cr	+367.0%
Free Cash Flow	-₹10 Cr	₹1 Cr	₹170 Cr	-₹114 Cr	—

🟢 Revenue has grown at 10.6% a year over 3 years.

🟢 EBITDA has grown at 13.7% a year over 3 years.

🟢 EBITDA Margin has risen from 35.9% to 39.1% over 3 years (+3.2 pts).

🟢 PAT (Net Profit) has grown at 3.8% a year over 3 years.

🟢 EPS has grown at 3.7% a year over 3 years.

🔴 ROE has fallen from 13.8% to 12.2% over 3 years (-1.6 pts).

🔴 ROCE has fallen from 18.2% to 16.0% over 3 years (-2.2 pts).

🔴 Total Debt has grown at 367.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,322 Cr

Total Liabilities

₹627 Cr

Cash & Equivalents

₹26 Cr

Operating Cash Flow

₹100 Cr

Capex

-₹214 Cr

Shareholding (proxy)

Institutional Holding

10.9%

Insider Holding

64.7%

Corporate Actions

Dividend Rate

₹4.5

Ex-Dividend Date

11 Nov 2025

Analyst Consensus

Recommendations

4 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹632.5

+24.5% vs CMP

Target Range

₹570 – ₹655

Peer Comparison

Company	P/E	ROE
BHARTI AIRTEL LIMITED	39.8x	20.2%
VODAFONE IDEA LIMITED	3.6x	—

Recent News

1 positive3 mixed2 general

Saregama India Ltd (SAREGAMA) Share Price

Business Today, 16 Oct

Saregama India Limited (NSE:SAREGAMA) Released Earnings Last Week And Analysts Lifted Their Price Target To ₹620

Simply Wall Street, 07 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Saregama India Ltd. Share Price Falls 5.66% Amid Mid Cap

Univest, 06 AugPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Saregama India - Swiggy among 5 stocks flashing bullish signals, hinting at a possible uptrend

The Economic Times, 10 JulAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Saregama India consolidated net profit rises 40.64% in the June 2026 quarter

Business Standard, 04 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Saregama India (SAREGAMA.NS) Holds Above ₹505 as Media Stock Tests Upper Range - Double EMA

siam.in, 10 Sept

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Profitability

MiddlingFinancial Health · Growth · Risk

WeakValuation

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 3 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑