Well I will defer to management on that. I believe they have had the luxury to not acquire overpriced content because they saw they were growing still as per their targets of 30%. At some point that will wear off. Probably not for the next 3 quarters as the new revenue should kick in from the recent deal for YoY results.
However, i was more concerned about the margins and the bottomline. So far have stopped tracking the stock closely since it is compounding nicely without effort.
However, because of the elevated margins, I would like to see what kind of returns I should expect for the next year.
Saregama used to trade around 60 p/e with a worse business model (because of writeoff strategy and other lumpy businesses) when it was delivering 30% growth. So there is still some room here for peak valuations.
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