Check Before You Invest : RK Swamy Ltd

Q: Which industry/sub-sector does RK Swamy Ltd belong to?

RK Swamy Ltd belongs to the Media sector, operating specifically within the Advertising & Media segment.

Q: Is RK Swamy Ltd a good quality company?

RK Swamy Ltd is a average quality company, based on a somewhat consistent multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is RK Swamy Ltd undervalued or overvalued?

RK Swamy Ltd appears Undervalued, as its key valuation ratios are lower than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 26.1, Historic Median: 47.78. Price to Book, Current: 1.87, Historic Median: 3.90. Price to Sales, Current: 3.36, Historic Median: 7.40. EV to EBITDA, Current: 12.16, Historic Median: 24.40

Q: Is RK Swamy Ltd a good buy now?

RK Swamy Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Q: Gross Profit margin of RK Swamy Ltd?

RK Swamy Ltd Gross profit margin which is the profit after deduction of direct costs, is 17.9% for FY-2025, which is in line with its 5-year median of 18.6%, indicating stable margins.

Q: Operating Profit Margin of RK Swamy Ltd?

RK Swamy Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 8.47% for FY-2025, which is below its 5-year median of 18.33% indicating decreasing margins.

Q: Net Profit Margin of RK Swamy Ltd?

RK Swamy Ltd Net Profit Margin is 11.32% for FY-2025, is in line with its 5-year median of 11.32%, indicating stable margins. Profitability Metrics. Gross Profit Margin (%), Current: 17.9, Historic Median: 18.6. Operating Profit Margin (%), Current: 8.47, Historic Median: 18.33. Net Profit Margin (%), Current: 11.32, Historic Median: 11.32

Q: Return on Asset of RK Swamy Ltd?

RK Swamy Ltd Return on Asset is 3.34%, which is below its 5-year historical median of 4.46%, indicating deteriorated asset utilization efficiency.

Q: Return on capital employed (ROCE) of RK Swamy Ltd?

RK Swamy Ltd Return on capital employed is 7.31% for FY-2025, which is below its 5-year historical median of 22.74%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q: Return on Equity (ROE) of RK Swamy Ltd?

RK Swamy Ltd Return on equity is 5.45% for FY-2025, which is below its 5-year historical median of 17.07%, indicating the business is making worse use of its shareholders capital.

Check Before You Invest : RK Swamy Ltd

BSE: 544136 NSE: RKSWAMY ISIN: INE0NQ801033

| Sector: Media | Industry: Advertising & Media

Snapshot

Q.1 Which industry/sub-sector does RK Swamy Ltd belong to?

RK Swamy Ltd belongs to the Media sector, operating specifically within the Advertising & Media segment.

Q.2 Is RK Swamy Ltd a good quality company?

RK Swamy Ltd is a average quality company, based on a somewhat consistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is RK Swamy Ltd undervalued or overvalued?

RK Swamy Ltd appears Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	26.1	47.78
Price to Book	1.87	3.90
Price to Sales	3.36	7.40
EV to EBITDA	12.16	24.40

Q.4 Is RK Swamy Ltd a good buy now?

RK Swamy Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

Q.1 Gross Profit margin of RK Swamy Ltd?

RK Swamy Ltd Gross profit margin which is the profit after deduction of direct costs, is 17.9% for FY-2025, which is in line with its 5-year median of 18.6%, indicating stable margins.

Q.2 Operating Profit Margin of RK Swamy Ltd?

RK Swamy Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 8.47% for FY-2025, which is below its 5-year median of 18.33% indicating decreasing margins.

Q.3 Net Profit Margin of RK Swamy Ltd?

RK Swamy Ltd Net Profit Margin is 11.32% for FY-2025, is in line with its 5-year median of 11.32%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	17.9	18.6
Operating Profit Margin (%)	8.47	18.33
Net Profit Margin (%)	11.32	11.32

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of RK Swamy Ltd?

RK Swamy Ltd Return on Asset is 3.34%, which is below its 5-year historical median of 4.46%, indicating deteriorated asset utilization efficiency.

Q.5 Return on capital employed (ROCE) of RK Swamy Ltd?

RK Swamy Ltd Return on capital employed is 7.31% for FY-2025, which is below its 5-year historical median of 22.74%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.6 Return on Equity (ROE) of RK Swamy Ltd?

RK Swamy Ltd Return on equity is 5.45% for FY-2025, which is below its 5-year historical median of 17.07%, indicating the business is making worse use of its shareholders capital.

C: How much debt does the business have and is it at a sustainable level?

Q.7 Debt to Equity ratio of RK Swamy Ltd?

RK Swamy Ltd Debt-to-Equity ratio is 0.10, which is lower the industry average of 0.16, indicating lower debt levels in the industry.

Q.8 Debt to cash flow from operations of RK Swamy Ltd?

RK Swamy Ltd Debt to cash flow from operations is -1.06, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of RK Swamy Ltd?

Q.1 Promoter shareholding and pledge status of RK Swamy Ltd?

Promoters hold 69.61% of the RK Swamy Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does RK Swamy Ltd performance compare with that of its Peers?

Q.1 Revenue growth of RK Swamy Ltd vs industry peers?

RK Swamy Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 0.00%, indicating stable growth and maintaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	-	0
Gross Profit Growth (%)	-48.8	25.6
Operating Profit Growth (%)	-77.3	20.6
Net Profit Growth (%)	-48.2	31.3

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.29	0.92
ROE (%)	5.45	8.74
ROCE (%)	7.31	12.1
Cash Conversion Cycle (days)	7.07	30

Valuation & price assessment

Q.1 Stock return of RK Swamy Ltd over the last decade?

Over the last 1 year(s), the stock has delivered a CAGR of -53.15% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	-53.2%

Q.2 Valuation ratios of RK Swamy Ltd vs historical?

The current P/E ratio of 26.1 is lower than its historical median of 47.78, indicating that the stock is trading below its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	26.1	47.78	23.28
Price to Book	1.87	3.90	2.66
Price to Sales	3.36	7.40	2.73
EV to EBITDA	12.16	24.40	11.36

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Check Before You Invest : RK Swamy Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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Check trending companies

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