The stock is outperforming the benchmark indices.
"Considering all these parameters, it is evident 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 a target range of Rs 600-620," said Mileen Vasudeo, Sr Technical Analyst, Arihant Capital.
(With data inputs from Ritesh Presswala)(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own.
These do not represent the views of Economic Times)
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Shares of Saregama India , one of India's oldest music labels and a producer of multi-language TV content, has seen a massive rally in the last 10-year period, rising as much as 5,000%.Accordingly, if an investor had invested Rs 10,000 in the stock 10 years ago and stayed put, the investment would have jumped to Rs 5 lakh, according to an analysis by ET Markets.However, in the recent past, the stock has not generated the jaw-dropping returns that were seen in the previous years. For instance, in the last six months, the shares rose 56% and are up about 42% in the last one-year period.Saregama India, formerly known as The Gramophone Company of India, is a RPSG group company owning the largest music archives in India and one of the biggest in the world.The ownership of nearly 50% of all the music ever recorded in India also makes Saregama the most authoritative 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.According to the shareholding pattern available with the exchanges, the company is majority owned by promoters at 59%, while public shareholders own the rest 41%.Among the public shareholders, mutual funds have no significant stakes. However, marquee foreign investors, including ADIA and Government of Singapore hold just over 15%.In the recent March 2024 quarter, the company’s operating revenue for the fourth quarter stood at Rs 263 crore, growing at 29% both on year-on-year as well as quarter-on-quarter basis, with a strong adjusted EBITDA of Rs 86.4 crore. The company delivered a PBT of Rs 76 crore with a 31% year-on-year growth.Technical outlook - What should investors do?Technically, on the daily chart, analysts are observing a higher-high formation and additionally the momentum indicator, namely RSI, is positively poised. The stock is outperforming the benchmark indices."Considering all these parameters, it is evident 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 a target range of Rs 600-620," said Mileen Vasudeo, Sr Technical Analyst, Arihant Capital.(With data inputs from Ritesh Presswala)(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
