R K Swamy Limited (RKSWAMY) AI Stock Analysis

• Market Cap: ₹4.36B
• Dividend Yield: 1.33%
• Average Volume (3M): 9.19K
• Price to Earnings (P/E): 51.4
• Beta (1Y): 1.44
• Revenue Growth: -3.97%
• EPS Growth: -43.83%
• Country: IN
• Employees: 2,500
• Sector: Services
• Sector Strength: N/A
• Industry: Advertising Agencies
• EPS (TTM): 0.55
• Shares Outstanding: 50,477,240
• 10 Day Avg. Volume: 23,180
• 30 Day Avg. Volume: 9,192
• PEG Ratio: -1.02
• Price to Book (P/B): 4.45
• Price to Sales (P/S): 3.77
• P/FCF Ratio: -55.99
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: ₹82.00 ▼(-40.17% Downside)
• Action: Reiterated Date: 03/24/26
• Date: Action: Reiterated 03/24/26

The score is anchored by solid financial performance and balance sheet improvement, but is held back by weak technical trends (price below all major moving averages with negative momentum) and a high P/E valuation that leaves less room for error.

Positive Factors

Revenue scale expansion

The multi-year jump from ~637m to 3.1bn demonstrates meaningful scale and client win momentum. Larger revenue base supports fixed-cost absorption, stronger negotiating leverage with media vendors, and a greater ability to invest in analytics and capabilities that sustain growth over the medium term.

Improved balance sheet strength

A stronger equity ratio and manageable leverage increase financial flexibility to fund working capital, M&A or capex without overreliance on costly debt. This buffer improves resilience to cyclic advertising spend swings and supports durable strategic investments over coming quarters.

Integrated service model

An integrated offering—creative, media buying, and research—creates cross‑sell opportunities and recurring retainer revenue. This diversification across service lines lowers dependency on one product, stabilizes cash flow profiles, and strengthens client relationships for sustainable revenue visibility.

Negative Factors

Operating cash flow weakness

A negative operating cash flow in 2025 and inconsistent FCF conversion signal cash‑conversion issues. If persistent, working capital demands or delayed client collections may force external financing, constraining reinvestment and raising long‑term funding risk for growth initiatives.

Margin pressure in 2025

Declining EBIT and EBITDA margins indicate rising cost or pricing pressure that erodes cash generation. Sustained margin compression would limit funds for capability build, reduce buffer against revenue volatility, and impair long‑term returns even if top line remains elevated.

Earnings volatility (EPS decline)

A ~43% EPS contraction reflects earnings volatility and potentially uneven client billing or margin swings. Persistent EPS decline undermines reinvestment capacity and makes planning for long‑term initiatives harder, increasing execution risk for strategic priorities over the medium term.

R K Swamy Limited Business Overview & Revenue Model

Company Description

R K Swamy Limited (RKSWAMY) is a prominent Indian advertising and marketing communications company that provides a wide range of services across various sectors, including advertising, digital marketing, public relations, and brand consulting. Established in 1972, the company has developed a strong presence in the market by delivering innovative solutions that enhance brand visibility and engagement for its diverse clientele, which spans multiple industries including FMCG, healthcare, technology, and consumer goods.

How the Company Makes Money

RKSWAMY makes money primarily by providing marketing and advertising services to corporate and public-sector clients under contracted engagements. Key revenue streams typically include (1) fees for creative and brand communication work (strategy, concept, content creation, production coordination, and campaign execution) billed as project fees, retainers, or time-and-materials; (2) media services revenues related to planning and buying ad inventory across channels and managing campaigns—earned through service fees/commissions and related client servicing charges (where applicable under client contracts); and (3) revenues from market research, measurement, and analytics services—earned from research studies, tracking programs, and data/insight deliverables sold on a project or subscription/retainer basis. Additional contributions can come from allied marketing services within the group (e.g., digital/PR/activation-type work) where offered under client mandates. Specific details such as exact segment split, named major clients/partnerships, commission structures, or proprietary product-level monetization are null.

R K Swamy Limited Financial Statement Overview

Summary

Strong multi-year revenue growth and improved margins over time, supported by a healthier equity position and manageable leverage. However, profitability pressure in 2025 (lower EBIT/EBITDA margins) and negative operating cash flow in 2025 temper the score.

Income Statement

R K Swamy Limited shows a strong revenue growth trend, increasing from 637 million in 2020 to 3.1 billion in 2025. The gross profit margin is healthy, and the net profit margin has improved over the years. However, the recent decline in both EBIT and EBITDA margins in 2025 suggests profitability pressures.

Balance Sheet

The company has significantly improved its equity position, with the equity ratio increasing from a low base in 2020. The debt-to-equity ratio is manageable, and the company has a strong cash position. However, the overall liabilities remain a point of concern.

Cash Flow

While the company has demonstrated strong free cash flow generation in past years, the negative operating cash flow in 2025 is concerning. The free cash flow to net income ratio has fluctuated, indicating potential cash management issues.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	3.15B	2.94B	3.32B	2.93B	2.34B	1.74B
Gross Profit	2.63B	685.70M	1.11B	777.80M	1.67B	1.36B
EBITDA	455.37M	414.06M	742.85M	629.08M	446.08M	283.30M
Net Income	193.74M	186.60M	397.25M	312.60M	192.55M	30.77M
Balance Sheet
Total Assets	3.96B	4.05B	3.96B	3.14B	4.06B	3.90B
Cash, Cash Equivalents and Short-Term Investments	1.44B	1.28B	491.73M	160.82M	404.51M	316.09M
Total Debt	364.55M	323.91M	204.68M	561.18M	505.78M	746.94M
Total Liabilities	1.50B	1.55B	1.55B	2.68B	3.90B	3.87B
Stockholders Equity	2.45B	2.50B	2.41B	452.31M	163.49M	36.48M
Cash Flow
Free Cash Flow	-3.76M	-198.26M	93.78M	243.13M	604.53M	489.29M
Operating Cash Flow	25.29M	-102.99M	111.84M	291.65M	640.09M	499.45M
Investing Cash Flow	70.29M	115.57M	-1.07B	-138.28M	-212.20M	-215.71M
Financing Cash Flow	-169.77M	-221.02M	1.36B	-442.65M	-334.87M	-276.07M

R K Swamy Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 137.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:RKSWAMY, the sentiment is Negative. The current price of 137.05 is above the 20-day moving average (MA) of 96.41, above the 50-day MA of 103.21, and below the 200-day MA of 137.37, indicating a bearish trend. The MACD of -4.68 indicates Positive momentum. The RSI at 21.64 is Positive, neither overbought nor oversold. The STOCH value of 17.54 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:RKSWAMY.

R K Swamy Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RKSWAMY	59 Neutral	₹4.36B	51.38	―	1.33%	-3.97%	-43.83%
HPIL	59 Neutral	₹1.28B	87.13	―	0.37%	42.23%	-50.43%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
RADIOCITY	49 Neutral	₹1.81B	15.77	―	―	-12.75%	-809.36%
CINEVISTA	43 Neutral	₹902.90M	6.41	―	―	37558.79%	-267.29%
CCHHL	42 Neutral	₹2.03B	-47.72	―	―	45.17%	―
RCOM	40 Underperform	₹2.49B	-0.03	―	―	-7.28%	-16.45%