RK Swamy Ltd - Stock Valuation and Financial Performance

BSE: 544136 | NSE: RKSWAMY | Business Support | Small Cap

RK Swamy Share Price

245.75 8.55 3.60%
as on 09-Dec'24 16:59

DeciZen - make an informed investing decision on RK Swamy

Overall Rating
Bole Toh

1. Quality

2. Valuation

Overvalued

3. Price Trend

RK Swamy stock performance -

mw4me loader
P/E Ratio (SA):
49.22
Market Cap:
1,197.3 Cr.
52-wk low:
191.1
52-wk high:
320.5

Is RK Swamy Ltd an attractive stock to invest in?

1. Is RK Swamy Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that RK Swamy Ltd is a average quality company.

2. Is RK Swamy Ltd undervalued or overvalued?

The key valuation ratios of RK Swamy Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.

3. Is RK Swamy Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Strong which suggest that the price of RK Swamy Ltd is likely to Rise in the short term. However, please check the rating on Quality and Valuation before investing

10 Year X-Ray of RK Swamy:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
RK Swamy Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide

Mar'21Mar'22Mar'23Mar'24TTM
ROCE % 15%30.7%41.5%22.7%-
Value Creation
Index
0.11.22.00.6-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 57.5111144162148
Sales YoY Gr.-92.8%29.9%12.6%-
Adj EPS 0.434.85.24.8
YoY Gr.-641.5%58.9%6.6%-
BVPS (₹) 8.710.814.348.947.4
Adj Net
Profit
1.712.421.52624
Cash Flow from Ops. 19.447.511.35.7-
Debt/CF from Ops. 1.80.43.75.6-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales NANA41.3%12.6%
Adj EPS NANA132.5%6.6%
BVPSNANA78%241.4%
Share Price - - - -

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'21Mar'22Mar'23Mar'24TTM
Return on
Equity %
4.831.139.816.810
Op. Profit
Mgn %
18.318.124.527.321.4
Net Profit
Mgn %
2.911.214.91616.5
Debt to
Equity
10.40.70.10
Working Cap
Days
0801597420314
Cash Conv.
Cycle
0-375-329-158168

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 41.25%

Net Profit is growing at healthy rate in last 3 years 132.46%

Return on Equity has declined versus last 3 years average to 10.00%

Sales growth is not so good in last 4 quarters at 0.11%

Latest Financials - RK Swamy Ltd.

Standalone Consolidated
TTM EPS (₹) 4.8 6.8
TTM Sales (₹ Cr.) 148 324
BVPS (₹.) 47.4 46.3
Reserves (₹ Cr.) 214 208
P/BV 5.01 5.12
PE 49.22 34.72
From the Market
52 Week Low / High (₹) 191.05 / 320.50
All Time Low / High (₹) 191.05 / 320.50
Market Cap (₹ Cr.) 1,197
Equity (₹ Cr.) 25.2
Face Value (₹) 5
Industry PE 52.8

Management X-Ray of RK Swamy:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of RK Swamy

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'21Mar'22Mar'23Mar'24
Sales58111144162
Operating Expenses 4791109118
Manufacturing Costs9465657
Material Costs0000
Employee Cost 24273237
Other Costs 14182024
Operating Profit 10203544
Operating Profit Margin (%) 18.2%18.1%24.5%27.3%
Other Income 6655
Interest 8568
Depreciation 6655
Exceptional Items 0000
Profit Before Tax 3152935
Tax 1279
Profit After Tax 2132227
PAT Margin (%) 2.9%11.3%15.0%16.3%
Adjusted EPS (₹)0.43.14.95.3
Dividend Payout Ratio (%)99%16%8%38%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'21Mar'22Mar'23Mar'24

Equity and Liabilities

Shareholders Fund 354464247
Share Capital 44425
Reserves 314059222
Minority Interest0000
Debt35184132
Long Term Debt0000
Short Term Debt35184132
Trade Payables17521318375
Others Liabilities 21214456
Total Liabilities 266296332410

Fixed Assets

Gross Block22252829
Accumulated Depreciation6111621
Net Fixed Assets1614127
CWIP 0000
Investments 009696
Inventories0000
Trade Receivables15416817999
Cash Equivalents 18257151
Others Assets78883857
Total Assets 266296332410

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'21Mar'22Mar'23Mar'24
Cash Flow From Operating Activity 1948116
PBT 3152935
Adjustment 86811
Changes in Working Capital 125-20-27
Tax Paid 82-6-14
Cash Flow From Investing Activity -5-11-41-104
Capex 0-1-10
Net Investments 00-1-105
Others -5-10-401
Cash Flow From Financing Activity -20-2612137
Net Proceeds from Shares 000173
Net Proceeds from Borrowing 0000
Interest Paid -5-3-5-6
Dividend Paid 0-2-2-2
Others -14-2118-29
Net Cash Flow -610-1839
PARTICULARSMar'21Mar'22Mar'23Mar'24
Ratios
ROE (%)4.6631.5840.0217.07
ROCE (%)14.9530.6641.4822.74
Asset Turnover Ratio0.220.390.460.44
PAT to CFO Conversion(x)9.53.690.50.22
Working Capital Days
Receivable Days975530439313
Inventory Days0000
Payable Days0000

RK Swamy Ltd Stock News

RK Swamy Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of RK Swamy on 09-Dec-2024 16:59 is ₹245.8.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 09-Dec-2024 16:59 the market cap of RK Swamy stood at ₹1,197.3.
The latest P/E ratio of RK Swamy as of 09-Dec-2024 16:59 is 49.22.
The latest P/B ratio of RK Swamy as of 09-Dec-2024 16:59 is 5.01.
The 52-week high of RK Swamy is ₹320.5 and the 52-week low is ₹191.1.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of RK Swamy is ₹147.5 ( Cr.) .

About RK Swamy Ltd

RK Swamy Limited was originally incorporated on February 16, 1973, at Madras, India as ‘R. K. Swamy Advertising Associates Private Limited’, a private limited company under the Companies Act, 1956, pursuant to a certificate of incorporation issued by the Registrar of Companies, Tamil Nadu at Madras. Due to strategic investment by BBDO into the Company, the Board of the company approved the change in the name of the company from ‘R. K. Swamy Advertising Associates Private Limited’ to ‘R. K. Swamy BBDO Advertising Private Limited’ by their resolution dated June 30, 1990, which was thereafter approved by the Shareholders of the company through their special resolution dated September 3, 1990 and a fresh certificate of incorporation, under the Companies Act, 1956, was issued by the Registrar of Companies, Tamil Nadu at Madras on September 11, 1990. Afterwards, the Board of the company approved the change in the name of the company from ‘R. K. Swamy BBDO Private Limited’ to ‘R K Swamy Private Limited’ by their resolution dated May 16, 2022, which was thereafter approved by the Shareholders of the Company pursuant to a special resolution dated May 19, 2022, due to the disinvestment of BBDO from the Company and a fresh certificate of incorporation, under the Companies Act, 2013, was issued by the RoC on June 21, 2022. Subsequently, the company was converted into a public limited company under the Companies Act, 2013 and consequently the name of the Company was changed from ‘R K Swamy Private Limited’ to ‘R K Swamy Limited’ pursuant to a resolution passed by the Board of the company on June 16, 2023 and a special resolution passed by the Shareholders of the company on July 3, 2023, and a fresh certificate of incorporation dated July 17, 2023 was issued by the RoC.

The company is one of the leading integrated marketing service groups in India, offering a single-window solution for creative, media, data analytics and market research services. The company offers a comprehensive range of services in the following interrelated and complementary business segments: (i) Integrated Marketing Communications, (ii) Customer Data Analytics and Marketing Technology (Customer Data Analytics and MarTech); and (iii) Full Service Market Research (including customer experience measurement) and Syndicated Studies (Full-Service Market Research). It has a track record of many decades, and has been serving leading companies such as Aditya Birla Sun Life AMC, Cera Sanitaryware, Dr. Reddy’s Laboratories, E.I.D. Parry (India), Havells India, Hawkins Cookers, Himalaya Wellness Company, Hindustan Petroleum Corporation, ICICI Prudential Life Insurance Company, IFB Industries, Mahindra and Mahindra, Oil and Natural Gas Corporation, Royal Enfield (a unit of Eicher Motors), Shriram Finance, Tata Play, Ultratech Cement, and Union Bank of India.

The company is a data driven integrated marketing services provider and all segments of its business use digital initiatives extensively. The company aims to provide the highest levels of professional service to meet the continuous needs of its clients and aims to continue growing its capabilities with an unyielding focus on the needs of its clients. Driven by its clients’ continuous demand for more effective and efficient marketing services, it strives to pursue a contrarian strategy by providing a wide range of advertising and marketing services under a unified management.

Business area of the company

The company is one of the leading integrated marketing service groups in India, offering a single-window solution for creative, media, data analytics and market research services.

Services of the company

  • Integrated marketing communications 
  • Customer data analytics and MarTech
  • Full-Service market research

Awards, accreditations & recognitions

  • 2019: Maddys 2019-Category - Packaging.
  • 2019: Pepper Awards 2019 -Category -TV single.
  • 2019: Pepper Awards 2019OOH Campaign Unpublished.
  • 2021: Maddys 2021-Agency of the year.
  • 2022: Maddy’s Award 2022 -Agency of the Year (Creative).
  • 2023: AFAA-Changemakers for Good- 2023 -Government Category -Department of Financial Services, Ministry of Finance, Government of India.
  • 2023: AFAA-Changemakers for Good 2023 -Pan Asia Winner-Government Category-Department of Financial Services, Ministry of Finance, Government of India.

History and milestones

  • 1973: Incorporation of the company.
  • 1974: Setting up of office in Delhi.
  • 1975: Setting up of office in Bombay.
  • 1977: Setting up of office in Calcutta.
  • 1980: Setting up of office in Bangalore.
  • 1989: Setting up of office in Hyderabad.
  • 1990: Investment by BBDO in the company.
  • 1995: Setting up of media agency, Media Direction.
  • 2011: Setting up of office in Cochin.
  • 2015: Broadcast Audience Research Council entered into agreement with the company for panel management of the television audience measurement. 
  • 2022: Disinvestment by BBDO from the Company.
  • 2022: Acquisition of Hansa Research.
  • 2022: Setting up of Hansa Marketing Services LLC in Dubai.
  • 2022: Setting up of Hansa Marketing Services Private Limited in Bangladesh.
  • 2022: Acquisition of Hansa Customer Equity.
  • 2023: Implementation of Scheme of Arrangement for demerger between HVIPL and R K Swamy Private Limited.
  • 2023: Conversion to public limited company.

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