Last Updated : Jun 09, 2020 01:53 PM IST | Source: Moneycontrol.com

Hold Saregama India; target of Rs 440: ICICI Direct

ICICI Direct recommended hold rating on Saregama India with a target price of Rs 440 in its research report dated June 08, 2020.

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ICICI Direct's research report on Saregama India

Saregama India's topline for Q4FY20 declined 14.3% YoY to Rs 108.7 crore as Carvaan sales fell to 74,000 units in Q4FY20 vs. 214,000 in Q4FY19, mainly due to no corporate buying and lockdown impact in March. EBITDA came in at Rs 21.5 crore, up 32% YoY, due to lower contract manufacturing charges & marketing costs. EBITDA margins at 19.8% were up 690 bps YoY. Consequently, PAT was at Rs 15.8 crore, down 7.1% YoY.

Outlook

We would await fructification of product demand growth given its strategy to convert it into platform for longer visibility. Therefore, we maintain HOLD rating with a revised target price of Rs 440/share at 14x FY22 P/E.

For all recommendations report, click here

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