Saregama India Ltd
ISIN: INE979A01025 • Market Cap: ₹9,801 Cr
The 5-Pillar Quality Audit for Saregama India Ltd
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (36.0%), Return on Capital Employed (16.5%), and equity compounding (12.9%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.00 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (12.2%) and 3Y PAT CAGR (6.0%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 44.26 vs PEG of 2.42 and Dividend Yield of 0.9%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 60.8%, backed by 20.1% institutional ownership.
Key Fundamental Strengths
Fortress Balance Sheet (D/E: 0.00)
The company operates virtually debt-free, shielding net margins from interest rate cycles and monetary tightening.
Consistent Market Standing (Mid Cap)
Established player in the Media Entertainment & Publication sector with an overall fundamental quality score of 76/100.
Areas to Watch & Potential Risks
Sectoral & Macro Headwinds (Media Entertainment & Publication)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Media Entertainment & Publication space.
Quantitative Strategy Eligibility
Checking SAREGAMA against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Qualifies for Indian Quality Indices with overall score of 76/100 and clean gearing.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Media Entertainment & Publication Sector Peer Comparison
Compare SAREGAMA directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Saregama India Ltd (SAREGAMA)Current | 76/100 | ₹9,801 Cr | 44.26 | 16.5% | 0.00 | — |
| Prime Focus Ltd. (PFOCUS) | 43/100 | ₹21,728 Cr | 187.99 | 15.2% | 7.31 | View |
| Sun TV Network Ltd. (SUNTV) | 71/100 | ₹18,938 Cr | 12.38 | 19.8% | 0.00 | View |
| Nazara Technologies Ltd. (NAZARA) | 61/100 | ₹13,803 Cr | — | 2.8% | 0.05 | View |
| PVR INOX Ltd. (PVRINOX) | 73/100 | ₹11,796 Cr | 26.53 | 3.3% | 0.10 | View |
| Zee Entertainment Enterprises Ltd. (ZEEL) | 60/100 | ₹9,836 Cr | 47.82 | 9.2% | 0.01 | View |
Frequently Asked Questions: Saregama India Ltd
Q:What is the 5-Pillar Fundamental Score for Saregama India Ltd (SAREGAMA)?
Saregama India Ltd has a RupeeTools Fundamental Score of 76/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (81/100), Financial Health (91/100), Growth (62/100), Valuation (57/100), and Ownership Quality (78/100).
Q:Is SAREGAMA fundamentally strong for long-term investment?
Yes, SAREGAMA exhibits solid fundamental strength with a 76/100 score, driven by a return on equity of 12.9% and a debt-to-equity ratio of 0.00.
Q:Does SAREGAMA pass the Coffee Can Investing filter?
Yes! SAREGAMA satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does SAREGAMA compare against other Media Entertainment & Publication peers?
Within India's Media Entertainment & Publication sector, SAREGAMA trades at a P/E of 44.26 and generates an ROCE of 16.5%. Compare its 5-Pillar score of 76/100 against top sector peers like Prime Focus Ltd. (43/100), Sun TV Network Ltd. (71/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.