R K Swamy Limited (RKSWAMY) AI Stock Analysis

• Market Cap: ₹5.51B
• Dividend Yield: 1.33%
• Average Volume (3M): 9.19K
• Price to Earnings (P/E): 28.4
• Beta (1Y): 1.59
• Revenue Growth: -3.97%
• EPS Growth: -43.83%
• Country: IN
• Employees: 2,500
• Sector: Services
• Sector Strength: N/A
• Industry: Advertising Agencies
• EPS (TTM): 0.11
• 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: 58 Neutral
• Price Target: ₹123.00 ▼(-10.25% Downside)

R K Swamy Limited's strong financial performance is offset by bearish technical indicators and a high valuation. The company's growth trajectory is promising, but recent cash flow issues and market momentum concerns weigh on the overall score.

Positive Factors

Revenue Growth

The company's strong revenue growth trend indicates a successful expansion of its market reach and service offerings, which is a positive indicator of its competitive position and ability to capture market opportunities over the long term.

Improving Profit Margins

Improving profit margins suggest operational efficiency and effective cost management, which enhance the company's profitability and financial health, supporting sustainable growth.

Solid Balance Sheet

A solid balance sheet with improved equity position provides financial stability and flexibility, enabling the company to invest in growth opportunities and weather economic fluctuations.

Negative Factors

Cash Flow Issues

Negative operating cash flow indicates potential liquidity challenges, which could hinder the company's ability to fund operations and growth initiatives, posing risks to long-term financial stability.

Profitability Pressures

Declining EBIT and EBITDA margins suggest increasing cost pressures or competitive pricing, which could impact profitability and necessitate strategic adjustments to maintain margins.

Liabilities Concern

High liabilities can strain financial resources and limit strategic flexibility, potentially impacting the company's ability to invest in growth and manage economic downturns effectively.

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 generates revenue primarily through its core services such as advertising, digital marketing, and public relations. The company operates on a fee-based model, charging clients for campaign management, creative services, and strategic consulting. Additionally, RKSWAMY collaborates with various businesses to create tailored marketing solutions, which often involve performance-based incentives tied to the success of campaigns. Significant partnerships with major brands and corporations further bolster its earnings by ensuring a steady stream of contracts and project work, while the growing demand for digital marketing services contributes to expanding revenue opportunities in the evolving advertising landscape.

R K Swamy Limited Financial Statement Overview

Summary

R K Swamy Limited is experiencing strong revenue growth and improving profit margins, with a solid equity position and manageable debt levels. However, the recent decline in cash flow metrics, particularly the negative operating cash flow in 2025, poses a risk to financial stability.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.07B	2.94B	3.32B	2.93B	2.34B	1.74B
Gross Profit	2.55B	685.70M	1.11B	777.80M	1.67B	1.36B
EBITDA	429.50M	414.06M	742.85M	629.08M	446.08M	283.30M
Net Income	193.55M	186.60M	397.25M	312.60M	192.55M	30.77M
Balance Sheet
Total Assets	0.00	4.05B	3.96B	3.14B	4.06B	3.90B
Cash, Cash Equivalents and Short-Term Investments	646.00M	1.28B	491.73M	160.82M	404.51M	316.09M
Total Debt	0.00	323.91M	204.68M	561.18M	505.78M	746.94M
Total Liabilities	-2.50B	1.55B	1.55B	2.68B	3.90B	3.87B
Stockholders Equity	2.50B	2.50B	2.41B	452.31M	163.49M	36.48M
Cash Flow
Free Cash Flow	0.00	-198.26M	93.78M	243.13M	604.53M	489.29M
Operating Cash Flow	0.00	-102.99M	111.84M	291.65M	640.09M	499.45M
Investing Cash Flow	0.00	115.57M	-1.07B	-138.28M	-212.20M	-215.71M
Financing Cash Flow	0.00	-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: Negative
• RSI: Neutral
• STOCH: Neutral

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 111.64, above the 50-day MA of 118.25, and below the 200-day MA of 161.51, indicating a bearish trend. The MACD of -2.72 indicates Negative momentum. The RSI at 36.64 is Neutral, neither overbought nor oversold. The STOCH value of 27.23 is Neutral, 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
HPIL	59 Neutral	₹1.55B	162.00	―	0.37%	42.23%	-50.43%
RKSWAMY	58 Neutral	₹5.51B	28.44	―	1.33%	-3.97%	-43.83%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
RADIOCITY	49 Neutral	₹2.22B	-5.28	―	―	-12.75%	-809.36%
CCHHL	45 Neutral	₹2.33B	28.22	―	―	45.17%	―
CINEVISTA	43 Neutral	₹924.73M	-3.41	―	―	37558.79%	-267.29%
RCOM	41 Neutral	₹2.96B	-0.03	―	―	-7.28%	-16.45%