Saregama India Limited saw its shares rise more than 3% after Nuvama Institutional Equities reiterated a buy rating on the stock. The brokerage has set a target price of ₹630 per share, implying an upside potential of nearly 27.9% from the current market price of ₹492.50.
Nuvama highlighted that the music label plans to invest ₹700 crore in expanding its music content over the next two years. The move is aimed at capturing an additional 25–30% market share. According to the brokerage, these investments are expected to deliver an internal rate of return (IRR) of 26% with a payback period of 4–5 years, supported by AI-driven and decentralised decision-making models.
On the growth outlook, Nuvama estimates Saregama’s music business to expand at a 20–23% CAGR, while its live events segment is projected to grow at 25–30% CAGR. The company currently has around 80 lakh paid music subscribers, which translates to just 1% penetration, far below global benchmarks.
The brokerage believes that consolidation among free streaming platforms over the next 12–18 months could act as a key trigger for accelerating paid subscriber growth, thereby strengthening Saregama’s long-term revenue profile.
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