This Small-Cap Entertainment Company Expands Digital Content Business with 36.63 Per cent Share Acquisition of Pocket Aces - Details Inside!

With a PE ratio of 49.98, the company trades at a premium compared to the industry PE of 39.1. The company has a ROCE of 19.6 per cent and a ROE of 14.06 per cent.

Saregama India Limited has successfully acquired a significant equity stake in Pocket Aces Pictures Private Limited, a prominent digital content creator and publisher. This acquisition, completed on March 29, 2025, involved purchasing 2,70,427 securities, representing 36.63 per cent of Pocket Aces' issued and paid-up share capital, for a total consideration of approximately Rs 127.47 crores. As a result, Saregama's shareholding in Pocket Aces has increased to 90.37 per cent. Pocket Aces is known for its extensive IP catalogue of over 35,000 content pieces, including web series, sketches, music videos, and reels, distributed across popular channels like FilterCopy, Nutshell, and Gobble. The acquisition aims to consolidate Saregama's holding in Pocket Aces, leveraging its vast distribution network of over 175 million followers to further popularize Saregama's music library among the 18-35 age group. This strategic move is expected to create synergies across the artiste and influencer management and long-format video creation businesses of both companies.

Saregama India Limited, established in 1902, is the oldest music label in India, formerly known as the Gramophone Company of India and HMV. The company is a leading entertainment entity with a diverse portfolio that includes music, films, web series, short-format content, and TV serials. It owns approximately 50 per cent of all recorded music in India and has a vast intellectual property library of over 150,000 songs in more than 23 languages. Saregama's business segments include music licensing and artist management, video content production, and events. The company has made significant strides in music licensing, with 52 per cent of its revenue in FY24 coming from 21st-century songs. Its flagship product, Carvaan, has seen robust sales, with 6.9 lakh units sold in FY24. Saregama's strategic focus includes doubling investments in new music and expanding its digital content offerings. The acquisition of Pocket Aces Pictures Pvt Ltd aligns with its ambition to lead in new music, leveraging Pocket Aces' extensive digital reach to enhance its music library's popularity among younger audiences.

As of March 28, 2025, the current stock price is Rs 511.6. The 52-Week High is Rs 673.45, and the 52-Week Low is Rs 359.25. Saregama India Limited has a market capitalization of Rs 9,864 crore. The company's 1-year return stands at 47.73 per cent, while the 3-year return is 11.25 per cent. The major public shareholder is Jayshree Nirman Ltd, holding 1.48 per cent of the shares.

In the Quarterly Results of December 2024, the company reported a revenue of Rs 483.43 crore, reflecting a YoY growth of 136.67 per cent compared to Rs 204.26 crore in December 2023. The operating profit stood at Rs 84.37 crore, marking a 28.57 per cent increase from Rs 65.62 crore in the same quarter last year. The profit after tax (PAT) grew by 19.32 per cent to Rs 62.31 crore from Rs 52.22 crore in December 2023.

In FY24, the company posted a revenue of Rs 803.00 crore, registering a 9.01 per cent growth compared to Rs 736.62 crore in FY23. The net profit for the year stood at Rs 197.59 crore, up 6.61 per cent from Rs 185.34 crore in the previous financial year.

With a PE ratio of 49.98, the company trades at a premium compared to the industry PE of 39.1. The company has a ROCE of 19.6 per cent and a ROE of 14.06 per cent. The company has been maintaining a healthy dividend payout of 36.0 per cent.

Investors must keep this Small-Cap stock on their radar.

Disclaimer: The article is for informational purposes only and not investment advice.