Saregama India shares jump 40% from one-year low levels; is more steam left?
Saregama India share price: The National Company Law Tribunal (NCLT) has recently approved the demerger of Saregama India's e-commerce distribution business and identified non-core assets into Digidrive Distributors. The demereged company aims to create a "specialised master distributor" for retailing all its physical products on digital marketplaces, the company said in an exchange filing.
- Jun 26, 2023,
- Updated Jun 26, 2023 4:41 PM IST
Shares of Saregama India Ltd on Monday surged 7.33 per cent to settle at Rs 423.30. At today's closing price, the stock has gained 39.57 per cent from its 52-week low of Rs 303.30, a level seen on May 26, 2023. That said, it is down 3.80 per cent from its one-year high price of Rs 440, hit on August 30 last year. The National Company Law Tribunal (NCLT) has recently approved the demerger of Saregama India's e-commerce distribution business and identified non-core assets into Digidrive Distributors. The demereged company aims to create a "specialised master distributor" for retailing all its physical products on digital marketplaces, the company said in an exchange filing.
Around 1.54 lakh shares changed hands today on BSE, which was higher than the two-week average volume of 88,000 shares. Turnover of the company came at Rs 6.45 crore, commanding a market capitalisation (m-cap) of Rs 8,161.63 crore.
On technical setup, support on the counter could be seen at Rs 394, followed by Rs 380 level.
Osho Krishan, Senior Analyst, Technical & Derivative Research at Angel One, said, "The stock has been trading in a downward channel for a long time and has seen a digestion of gains in all the previous attempts to breakout. However, the stock has finally witnessed an authoritative breakout of that channel. But on technical parameters, its short-term EMAs (Exponential Moving Averages) still trade below its long-term EMA, indicating sluggish headwinds. The view on the stock is upbeat, but it will be good to see a small consolidation post recent gains for further continuation of the current up move. As far as levels go, the stock has an immediate hurdle around Rs 440-450 and on the flip side, has the support of the bullish gap of Rs 380, followed by Rs 360-odd zone."
Vaibhav Kaushik, Research Analyst at GCL Broking, said, "The stock is under consolidation since 2022. It can touch Rs 750 levels in next 12 months. Keep strict stop loss placed at Rs 349."
AR Ramachandran from Tips2trades said, "The stock price is bullish but also overbought on the daily charts with next resistance at Rs 429. Investors should book profits at current levels as a daily close below the support of Rs 394 could lead to Rs 317 in the coming weeks."
VLA Ambala, Research Analyst at Stock Market Today, said, "One can hold the stock with possible targets ranging from Rs 470 to Rs 600, while keeping a strict stop loss at Rs 296. For fresh buying, one can wait for a small pull back around Rs 390 to Rs 410 levels."
Saregama India is a music label and entertainment company. It is known for its vast music library and production of content across various platforms.
Meanwhile, Indian equity benchmarks returned settled on a mixed today in a highly volatile trading session. Losses in state-owned lenders and energy stocks countered gains in consumer and pharma shares today. The 30-share BSE Sensex pack slipped 9 points or 0.01 per cent to close at 62,970; while the broader NSE Nifty index moved 26 points or 0.14 per cent higher to settle at 18,691.
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Shares of Saregama India Ltd on Monday surged 7.33 per cent to settle at Rs 423.30. At today's closing price, the stock has gained 39.57 per cent from its 52-week low of Rs 303.30, a level seen on May 26, 2023. That said, it is down 3.80 per cent from its one-year high price of Rs 440, hit on August 30 last year. The National Company Law Tribunal (NCLT) has recently approved the demerger of Saregama India's e-commerce distribution business and identified non-core assets into Digidrive Distributors. The demereged company aims to create a "specialised master distributor" for retailing all its physical products on digital marketplaces, the company said in an exchange filing.
Around 1.54 lakh shares changed hands today on BSE, which was higher than the two-week average volume of 88,000 shares. Turnover of the company came at Rs 6.45 crore, commanding a market capitalisation (m-cap) of Rs 8,161.63 crore.
On technical setup, support on the counter could be seen at Rs 394, followed by Rs 380 level.
Osho Krishan, Senior Analyst, Technical & Derivative Research at Angel One, said, "The stock has been trading in a downward channel for a long time and has seen a digestion of gains in all the previous attempts to breakout. However, the stock has finally witnessed an authoritative breakout of that channel. But on technical parameters, its short-term EMAs (Exponential Moving Averages) still trade below its long-term EMA, indicating sluggish headwinds. The view on the stock is upbeat, but it will be good to see a small consolidation post recent gains for further continuation of the current up move. As far as levels go, the stock has an immediate hurdle around Rs 440-450 and on the flip side, has the support of the bullish gap of Rs 380, followed by Rs 360-odd zone."
Vaibhav Kaushik, Research Analyst at GCL Broking, said, "The stock is under consolidation since 2022. It can touch Rs 750 levels in next 12 months. Keep strict stop loss placed at Rs 349."
AR Ramachandran from Tips2trades said, "The stock price is bullish but also overbought on the daily charts with next resistance at Rs 429. Investors should book profits at current levels as a daily close below the support of Rs 394 could lead to Rs 317 in the coming weeks."
VLA Ambala, Research Analyst at Stock Market Today, said, "One can hold the stock with possible targets ranging from Rs 470 to Rs 600, while keeping a strict stop loss at Rs 296. For fresh buying, one can wait for a small pull back around Rs 390 to Rs 410 levels."
Saregama India is a music label and entertainment company. It is known for its vast music library and production of content across various platforms.
Meanwhile, Indian equity benchmarks returned settled on a mixed today in a highly volatile trading session. Losses in state-owned lenders and energy stocks countered gains in consumer and pharma shares today. The 30-share BSE Sensex pack slipped 9 points or 0.01 per cent to close at 62,970; while the broader NSE Nifty index moved 26 points or 0.14 per cent higher to settle at 18,691.
Also read: Aditya Birla Capital shares climbed 4% today. Here's why
Also read: 88% of stocks from this BSE index have outperformed Sensex in 2023. Here’s what analysts have to say