Multibagger hunt! Rs 10,000 investment in this BSE500 stock turned to Rs 5 lakh in just 10 years

economictimes.indiatimes.com:

Saregama India have offered massive returns to investors in the last 10 years, rising as much as 5,100%. Accordingly, if an investor had invested Rs 10,000 in the stock 10 years ago and stayed put, the investment would have turned to nearly Rs 5 lakh, according to an analysis by ET Markets. In the last five years, the shares have surged 380% while they have zoomed nearly 1250% in the last three years.

Saregama India, an RP Sanjiv Goenka Group company, is India's oldest music label and a multi-language TV content producer. The company's range of music encompasses both new and old Hindi films, regional films, ghazals, classical, indipop and international. Saregama also has a film business, which produces films and TV serials.

According to the shareholding pattern available with the exchanges, the company is majority owned by promoters at 58.49%, while public shareholders have the rest 41.27% stake. Among the public shareholders, mutual funds own a meagre 0.5% stake, while foreign portfolio investors have about 17% holding in the company. The BSE500 company has a market capitalisation of Rs 7,866 crore and has an EPS of 9.62 on a trailing twelve-month (TTM) basis.

The stock is currently trading at a PB of 5.37. For the fourth quarter, Saregama India posted its highest-ever revenue of Rs 207 crore, registering a 15% YoY. For FY23, the company’s operating revenue rose 29% YoY at Rs 751 crore, while full year PAT stood at Rs 189 crore, up 24% YoY.Technical OutlookAnalysts advise investors to buy the stock at current levels from a medium to long-term perspective.

«The stock is under consolidation from 2022. On a longer monthly chart, it has given a strong breakout of the monthly flag pattern. It can touch 750 levels in the next