Rs 1089 to Rs 3949: This music label company has given blockbuster returns of 262.2 per cent in a year!

The share price of the company stood at Rs 1,089.1 on March 01, 2021, and since then, it has increased investor wealth by more than three times.

Saregama India Limited, one of the oldest music label companies, has offered investors spectacular profits of 262.2 per cent over the last year. 

Snapshot of Q3FY22 result  

In Q3FY22, revenue grew by 12.27 per cent YoY to Rs 150.34 crore from Rs 133.91 crore in Q3FY21. On a QoQ basis, the revenue was up by 3.62 per cent. The company has reported PBIDT (Ex OI) at Rs 54.37 crore, up by 35.89 per cent as compared to the corresponding period of the last year and the corresponding margin was reported at 36.16 per cent, expanding by 628 basis points YoY. PAT was reported at Rs 43.54 crore, up by 37.78 per cent from Rs 31.6 crore in the same quarter for the previous fiscal year. The PAT margin stood at 28.96 per cent in Q3FY22 expanding from 23.6 per cent in Q3FY21.   

About the company   

Saregama India Limited, a part of the RP Sanjiv Goenka Group, is India's oldest music label, as well as the country's youngest film studio and multilingual TV programming generator. The company wants to be a pure-play content company that can take advantage of the global consumer boom. Steadily, the company expanded its portfolio to include intellectual property rights of over 4000 hours of TV content produced for channels in Hindi, Tamil, Telugu, Kannada, Malayalam and Bengali. 

The corporation has dabbled in music retailing via physical and digital means such as CDs, iOS and Android-based apps, and USB-based thematic music cards over the last few decades. 

Expansionary Plans 

Saregama India recently declared that it plans to invest up to Rs 750 crore in its music business over the next three years to achieve a 25-30 per cent revenue growth through organic and inorganic channels. The fund is solely dedicated to the music industry. This isn't going to be used for Carvaan or the company's films.   

At 11:17 am on Monday, the stock of Saregama India Limited was trading at Rs 3,949, down by 0.41 per cent or Rs 16.4 per share. The 52-week high of the scrip is recorded at Rs 5,487 and the 52-week low at Rs 1,035.1 on the BSE.