This ADIA-Backed Multibagger Stock Turned Rs 10,000 into Rs 5 Lakh in 10 Years: Saregama India Soars 5,000%

Shares of Saregama India, one of India’s oldest music labels and a producer of TV content in multiple languages, have surged massively over the last decade, rising by an incredible 5,000%.

If an investor had put Rs 10,000 into Saregama stock 10 years ago and held onto it, their investment would now be worth Rs 5 lakh, according to ET Markets.

However, in the past year, the stock hasn’t seen the same dramatic returns. Over the last six months, the shares rose by 56%, and in the past year, they increased by about 42%.

Saregama India, formerly The Gramophone Company of India, is part of the RPSG group. It owns the largest music archives in India and one of the biggest in the world, holding about 50% of all music ever recorded in India. This makes Saregama the main repository of India’s musical heritage. The company has also expanded into film and series production, live events, and music-based consumer products.

According to exchange records, the company’s promoters own 59% of Saregama, while public shareholders hold the remaining 41%. Among the public shareholders, mutual funds do not have significant stakes, but notable foreign investors like ADIA and the Government of Singapore own just over 15%.

In the March 2024 quarter, Saregama’s operating revenue for the fourth quarter was Rs 263 crore, growing by 29% year-on-year and quarter-on-quarter. The adjusted EBITDA was Rs 86.4 crore, and the company achieved a PBT of Rs 76 crore, showing a 31% year-on-year growth.

Technical Outlook – What Should Investors Do?

On the daily chart, analysts are noticing a higher-high formation, and the momentum indicator, RSI, is showing positive signs. The stock is performing better than the benchmark indices.

“Given these factors, the stock is likely to keep rising. Investors can hold the stock at the current market price (CMP) of Rs 568, with a stop loss at Rs 536 and a target range of Rs 600-620,” said Mileen Vasudeo, Senior Technical Analyst at Arihant Capital.