Nuvama has reiterated its buy rating on Saregama with a target price of ₹630 per share, implying a potential upside of about 27.9% from the current market price of ₹492.50.
The brokerage highlighted that Saregama India Limited (SIL) plans to invest ₹700 crore in music content over the next two years, targeting a 25–30% incremental market share. These investments are expected to generate a 26% internal rate of return (IRR) with a payback period of 4–5 years, supported by AI-driven and decentralised decision-making.
Nuvama expects the company’s music business to grow at a 20–23% CAGR, while its live events segment is projected to expand at 25–30% CAGR. Paid music subscribers currently stand at 80 lakh, representing just 1% penetration, which is significantly below global levels. The brokerage believes that consolidation in free streaming platforms over the next 18 months will accelerate paid subscriber growth.
Disclaimer: The views and investment recommendations expressed are those of Nuvama. These do not represent the views of this publication and should not be considered as investment advice. Investors are advised to consult their financial advisors before making any investment decisions.
