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This share zoomed over 500% in a year, did you miss the rally?

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Share of Saregama India Limited has delivered quite 500 percent returns to its shareholders within the last 12 months. The share stood at Rs 429 on June 22, 2020. it’s zoomed to Rs 2714.85 today, translating into gains of 533 percent during the amountas compared, Sensex rose 51 percent in one year.

Rs 5 lakh invested in India’s oldest music label share a year ago would have become Rs 31.64 lakh today.

The stock has gained 223 percent since the start of this year. It opened 0.9 percent higher at Rs 2675.00 against the previous close of Rs 2650.45 on BSE.

The share of Saregama India stands above 5 days, 10 days, 20 days, 50 days, 100 days, and 200-day moving averages.

“Saregama has gone up from Rs 181 to now well above Rs 2,700 i.e. up by quite 14 times from its March 2020 lows. The stock looks too overbought technically hence one should either book full profits or trail stop loss well above the value,” Jay Thakkar, VP and Head of Equity Research, Marwadi Shares and Finance Limited, told Business Today.

“The near term support is at Rs 2,400 which if broken then it’ll confirm its trend reversal from up to down. The daily momentum indicator is already within the sell mode indicating weakness of momentum within the short term,” he noted.

“The stock seems to be within the fag end of its wave 3 up and albeit it corrects by 23.6% then the stock will fall till Rs 2,146 levels conservatively whereas the 38.2% retracement levels come to Rs 1,781 levels,” he added.

The company reported a net income of Rs 37 crore for the quarter ended March 2021. It had posted a net income of Rs 14.84 crore within the corresponding quarter of the previous fiscal year.

Revenue from operations grew 13.6 percent to Rs 123.45 crore in Q4 compared to Rs 108.6 crore within the year-ago period.

The company informed that it sold 110K units of its revolutionary product Carvaan in Q4 FY21. It added that the fast-growing digitisation of India, buoyed by this Covid situation, is that the key driver of change in content consumption habits.

Speaking on the outlook, the corporate said, “The Covid19 related hiccups notwithstanding, we expect the music industry to grow by 12 -14%, and Saregama’s licensing revenue to grow by 22-25 % annually over subsequent 3-5 years. The key drivers are going to be the growing digitisation and cheap data plans by operators and Saregama’s investment in New Music.

“In FY22, the main target on transitioning Carvaan from one-time margin Product to recurring revenue-generating Platform will continue,” it added.

Recently, the corporate announced worldwide music licensing affect a widely popular short format video platform, Triller.

As a part of this deal, Saregama will license its entire catalogue to Triller allowing users to make content using the music library of over 1,30,000 songs.

Saregama India Limited formerly referred to as The Gramophone Company of India Ltd may be an RP-Sanjiv Goenka Group company. The Group’s businesses include power and energy, lampblack manufacturing, retail, IT-enabled services, FMCG, media and entertainment, and agriculture.

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