Title: Relationship of Saregama India Limited with Nifty50.
Author: Sagar Anil Chhapru
Introduction: Saregama India Ltd is one of India’s oldest and most influential music and entertainment companies, known historically as the country’s first music label and a pioneer in recorded Indian music. Over more than a century, it has evolved from a traditional record label into a diversified content business spanning music, films, television, and digital products.
Objective: To calculate Beta of Saregama India Limited and observe its significance.
Literature Review:
Driving Digital Transformation for Competitive Distinctiveness: The Case of Saregama Carvaan 2.0
Shaunak Roy& Shivaji Banerjee (2021): In this article the author said that Saregama India Ltd, through Saregama Carvaan 2.0, has adeptly navigated post-COVID digital transformation by hybridizing its traditional physical music player—initially launched in 2018 with 5000+ retro songs—with cutting-edge digital features like access to over 200 podcast stations, strategic investments in new Hindi and Bhojpuri music, and a global platform for content creators, alongside Yoodlee Films’ originals on Netflix and Hotstar. This evolution redefines customer value propositions by blending nostalgic physical appeal for older audiences with seamless digital streaming and innovation for younger users, avoiding full digitization to preserve hardware’s tactile charm while licensing its vast IP catalogue across platforms like YouTube, Gaana, and JioSaavn. Operationally, Saregama integrates physical (devices, events) and digital (podcasts, licensing) elements efficiently, minimizing complexity, retaining loyalty across generations, and driving competitive distinction in a disrupted music industry.
Stock Performance of Selected Indian Entertainment Companies: An Empirical Study.
Deb Ishita & Mora Balanji Reddy (2025): The paper evaluates the stock performance of selected entertainment companies listed on the Bombay Stock Exchange (BSE) over a 10-year period (2015-2024). It employs quantitative methodology based on secondary data analysis, using mean-variance analysis, standard deviation, coefficient of variation, correlation and regression models. The findings reveal substantial differences in performance and risk exposure among companies. While firms like Network18 and Saregama Ltd. display relatively higher returns with moderate correlation to market trends, others such as PVR INOX Ltd. and Dish TV show high volatility and weaker predictability in returns. The study provides critical implications for investors, policymakers and industry stakeholders. Overall, the analysis offers actionable insights for navigating the evolving landscape of India’s entertainment industry.
Data Collection: Historical data of Saregama India Limited and Nifty50 index data was downloaded from NSE website for the period of 1/12/2024 to 30/11/2025.
The data was manipulated to get Friday closing prices.
Data Analysis: Regression equation with t-statistics for Beta (β)
Weekly return on Equity = -0.182 + 0.109
N = 48 | R square = 0.093 | F = 4.758 | P value = 0.034
This equation shows that when the Nifty’s weekly return increases by 1 unit, the expected return on the equity increases on average by about 0.109 units, so the slope (Beta) is positive and indicates that the stock tends to move in the same direction as the market. The intercept of -0.182
means that if the Nifty’s weekly return were zero, the expected return on the equity would be about -0.182
, suggesting a small negative base return when the market is flat.
The t‑statistic for Beta is about 2.18 (with p‑value ≈ 0.034), which is less than 0.05, so Beta is statistically significant at the 5% level; this implies that the relationship between the stock’s return and Nifty’s return is unlikely to be due to random chance. The R square of 0.093 means that about 9.3% of the variation in the equity’s weekly returns is explained by movements in the Nifty, while the remaining 90.7% is due to other factors not included in the model, such as firm‑specific news, sector shocks, or broader economic variables.
The F‑statistic of 4.758 with a corresponding p‑value of 0.034 indicates that the overall regression model is statistically significant at the 5% level, so taken together, the explanatory variable (Nifty return) provides a meaningful, though modest, explanation of the equity’s returns. However, because R square is low, the model has limited explanatory power, so while Nifty movements do have a significant directional effect on the stock, most of its week‑to‑week return behaviour is driven by other influences beyond the index.
Conclusion: Since the Beta value (2.18) is greater than 1, the stock moves more than the market. So, it is good for short-term investment when the market is rising, but it is riskier when the market falls.
Reference:
Roy, S., & Banerjee, S. (2021). Driving digital transformation for competitive distinctiveness: The case of Saregama Carvaan 2.0. In A. Omrane (Ed.), New business models in the course of global crises in South Asia (pp. 141–158).
Deb, I., & Mora, R. (2025). Stock Performance of Selected Indian Entertainment Companies: An Empirical Study. IUP Journal of Accounting Research & Audit Practices, 2025, Vol 24, Issue 3, p432.