Nuvama has initiated coverage on Saregama India Limited (SIL), a part of the RPSG Group, with a ‘Buy’ rating and a target price of ₹635 per share. The share price target implies a 24% upside in the stock price from current levels of Rs 509. Recognized as the largest intellectual property (IP) player, the oldest music label, and one of the youngest film studios in India, Saregama stands out for its diverse revenue streams, including music licensing, video production, artist management, and live events.
Nuvama’s positive outlook on Saregama is underpinned by the company’s strategic goal to scale up its music licensing business, which aligns well with current industry trends. The brokerage forecasts a compound annual growth rate (CAGR) for Saregama’s revenue, EBITDA, and PAT at 21%, 25%, and 22%, respectively, over FY25–27. To support this growth, Saregama plans to invest ₹1,000 crore in content development during this period, aiming to further monetize its extensive IP portfolio.
Despite the optimistic forecast, Nuvama highlighted potential risks, including uncertainty around content quality and the increasingly competitive landscape. However, the company’s extensive reach, synergistic partnerships, and commitment to expanding its content library position it favorably in India’s entertainment sector.
