Stock watch: Saregama india

Saregama India (the erstwhile Gramophone Company of India), the entertainment firm of the RPG Group, is a good scrip to watch out for.

The scrip was up 4 per cent in Wednesday's intra-day trades but it closed marginally down. The scrip moved up about eight per cent in the last one week from Rs 180.90.

The company recently announced about having struck a Rs 15 crore deal to sell-off 10 acre of land at Dumdum in Kolkata. The scrip moved pretty well in the previous months along with the broad media stocks rally.

The company announced about having achieved the distinction of being the first Indian company to set up a master server of three lakh songs, at an estimated Rs 2 crore.

It has already digitised 35 per cent of its songs and is now set to foray into the ring-tone business too. It will be using its existing archive for this purpose. It is also planning to collect roayalties from the film industry for using its songs.

Saregama is currently producing eight films, including two Bengali movies, which are at different stages of their production. It had recorded a turnover of Rs 100.87 crore, net profit of Rs 5.21 crore for the year ended March 31, 2005.