Saregama to Outperform – ICICI Sec

ICICI Securities expects Saregama to once again dominate the Indian music industry and replicate its dominant performance which it showed for decades. Given the robust growth in the high margin business like publishing and home video coupled with effectively utilization of the music library ICICI expects Saregama to command improved valuations given its high earnings visibility. At the current price of Rs 302, the stock at a P/E of 21.15x FY08E EPS of Rs14.28 and 16.77x FY09E EPS of Rs 18.01. ICICI rates the stock as an OUTPERFORMER with a price target of Rs 405, 22.5x FY09E.

The company is expected to report an EPS of Rs 14.28 for FY08 and Rs 18.01 for FY09. You can download and read the entire report. [PDF]