Saregama India Ltd., a part of the RP-Sanjiv Goenka Group, holds the distinction of being India’s oldest music label. From its inception in 1901 as the Gramophone Company of India to its present-day digital transformation, Saregama has continually evolved with the times. But how does it hold up today in the eyes of investors? Let’s break it down.
When Did Saregama Enter the Stock Market and How Has It Performed?
Saregama’s stock has been listed on Indian exchanges for decades, but its meteoric rise began post-2017. Trading at around ₹24 in May 2017, it climbed to over ₹429 by May 2022—a nearly 17x return. As of May 12, 2025, the stock trades at ₹543.20 (NSE), showing robust historical performance. Source
What Are the Core Businesses of Saregama India?
It has transitioned from being a legacy music label to a multifaceted entertainment company. Here are its main business verticals:
- Music Licensing & Streaming: Over 150,000 songs across 14 languages are monetized via platforms like YouTube, Spotify, and Gaana.
- Carvaan: A retro-style digital audio player preloaded with old classics, targeting nostalgia-driven listeners.
- Yoodlee Films: Produces feature films and OTT content.
- Artist Management & Live Events: Leveraging legacy content for tours and performances.
Who Are Saregama’s Clients and Distribution Partners?
It monetizes content through partnerships with:
- Digital Streaming Platforms: Spotify, YouTube, Apple Music
- OTT Platforms: Netflix, Amazon Prime Video
- Music Licensing: FM channels, TV broadcasters, telecoms
- Retail Partners: Flipkart, Amazon for Carvaan distribution
How Does Saregama Compare Financially with Peers?
Here’s a snapshot of how the old music giant stacks up:
| Company | P/E Ratio | P/B Ratio | Market Cap (₹ Cr) |
|---|---|---|---|
| Saregama | 52.04 | 6.10 | 10,547.64 |
| Tips Industries | 49.49 | 39.34 | 8,243.86 |
| Prime Focus | – | 7.81 | 3,260.86 |
| Panorama Studios | 34.93 | 8.36 | 1,375.15 |
Saregama’s high P/E indicates market confidence, though it also suggests premium pricing relative to earnings.
What Are the Advantages of Investing in Saregama?
- Legacy Content Ownership: Valuable music catalog with perpetual licensing rights
- Diverse Revenue Streams: Across music, films, hardware, and events
- Brand Recall: Carvaan campaigns like “Ek Carvaan Aapke Yaadon Ka” have strong emotional appeal
- Growing Music Consumption: Rising digital consumption fuels licensing revenues
What Are the Potential Risks or Drawbacks?
- Valuation Pressure: Trading at 50+ P/E, there’s little room for earnings misses
- Legacy Dependence: Heavy reliance on older catalog may not appeal to Gen Z
- Hardware Margin Risk: Carvaan margins are vulnerable to tech obsolescence
What’s the Latest News Around Saregama?
- Q3 FY25 Earnings: Net profit rose 20.8% YoY to ₹63.24 crore
- Investment Plan: Announced ₹1,000 crore investment in new music content over 3 years
- Acquisitions: Raised stake in Pocket Aces Pictures to expand digital content offerings
What Does the Future Look Like for Saregama?
The company plans to ride the wave of regional and hip-hop music growth in India. Analysts project 9.7% CAGR in revenue with margins expected to improve from 16.6% to 23.5% by 2028. The company’s strategy includes:
- Expanding regional music library
- Strengthening OTT film production
- Licensing newer, contemporary content
What Do Analysts Think About Saregama Today?
| Firm | Rating | Target Price (₹) |
|---|---|---|
| Emkay Global | Buy | 580 |
| TradingView | Neutral | 603.33 |
| Simply Wall St | Neutral | 602.31 |
The consensus is cautiously optimistic, with analysts expecting gains but advising watchfulness around execution.
Who Might Find Saregama Suitable or Unsuitable?
More Suitable For:
- Long-term investors seeking media exposure
- Fans of dividend-generating content businesses
- Those confident in India’s digital content boom
Less Suitable For:
- Short-term traders looking for momentum
- Value investors wary of high P/E ratios
- Investors expecting rapid quarterly growth
Final Word
Saregama India is not just a music label; it’s a cultural asset adapting to modern consumption. With strategic investments and diverse offerings, it remains a key player in India’s content economy. Investors tracking media sector growth may find it worth monitoring—with cautious optimism.
Disclaimer: This blog is for informational purposes only and does not constitute investment advice.
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