Agree that Tips looks slightly overvalued now, but still significantly cheaper than Saregama. Plus the demerger special situation is likely to play out soon. That said, Saregama is probably a more sustainable long term growth story with deeper pockets for content acquisition, especially after the QIP, and the professional management team. Assuming that there will be no incremental capital from music deployed into other businesses.
I am planning on swapping Tips for Saregama if the relative valuaiton becomes 1/2.5.
I had bought when the relative market caps were 1/5, which is already down to 1/3.5. Your thoughts on this approach?
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