R K SWAMY IPO Financial Analysis

R K SWAMY IPO Financial Analysis
R K SWAMY IPO Financial Analysis

by Tanushree Jaiswal Last Updated: Feb 28, 2024 - 02:57 pm 519 Views
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R K Swamy Limited is a leading provider of integrated marketing services in India specializing in customer data analysis, market research, and digital initiatives including creative, media, and data analytics solutions. R K Swamy is set to launch its IPO on 4 March 2024. Below is a summary of the company's business model, strengths, risks, and financials to assist investors in making informed decisions.

R K SWAMY IPO Overview

Established in 1973, R K Swamy Limited focuses on integrated marketing communications, customer data analysis, and comprehensive market research services. Its comprehensive range of services includes creative solutions, media management, data analytics, and market research. In the fiscal year 2023 R K Swamy Limited executed over 818 creative campaigns across various media platforms for its clients. It also processed a massive volume of data totaling over 97.69 terabytes and conducted more than 2.37 million consumer interviews through various survey methods.

The company serves a diverse clientele including prominent names such as Aditya Birla Sun Life AMC Limited, Dr. Reddy's Laboratories Limited, Havells India Limited and Tata Play Limited among others. Ranked among the top 10 diversified integrated marketing communications services groups in India, R K Swamy Limited operates across three main business segments Integrated Marketing Communications, Customer Data Analytics and MarTech and Full Service Market Research.

R K SWAMY IPO Strengths

1. R K Swamy has been helping clients with integrated marketing services for 50 years.

2. With a 15 year history in Data Analytics and Marketing Technology, RK Swamy is recognized for its expertise in generating large scale digital content and its leadership in market research.

3. The company has a wide range of customers with whom it has strong, lasting relationships.

4. Established an internal infrastructure to ensure the efficient delivery of services.

R K SWAMY IPO Risk

1. Its revenue is dependent on key clients. Losing them or if they cut marketing budgets could impact its business, growth and financial health.

2. Its revenues heavily rely on specific key industries. Any decline in demand for marketing services within these sectors could adversely impact its business, financial condition and operational results.

3. Digital marketing and Integrated Marketing Communications are key revenue streams. Changes in trends, client spending, and delays in adapting to market advancements could impact its business and financial health.

4. Inability to upgrade data analytics or incorrect predictions due to outdated technology may affect service quality and client satisfaction. Implementing new technologies may also strain finances.

R K SWAMY IPO Details

R K Swamy's IPO is scheduled from 4th March to 6th March 2024. The price band for the IPO has been set at ₹270- ₹288 per share.

Total IPO size (₹Cr) 423.56
Offer for sale (₹Cr) 250.56
Fresh issue (₹Cr) 173.00
Price band (₹) 270-288
Subscription dates 4 March 2024 to 6 March 2024

Financial Performance of R K SWAMY IPO

R K Swamy's profits after taxes were ₹3.08 Crore on March 31, 2021 surged to ₹19.26 Crore by March 31, 2022 and continued to rise to ₹31.26 Crore by March 31, 2023. This increasing growth reflects an improvement in the company's financial performance during this period.

Period 31 Mar 2023 31 Mar 2022 31 Mar 2021
Assets (₹ Crore ) 313.65 406.44 390.06
Revenue (₹ Crore ) 299.91 244.97 183.22
PAT (₹ Crore ) 31.26 19.26 3.08
Total Borrowing (₹ Crore ) 4.51 28.73 45.68

R K SWAMY IPO Vs Peers

Among its peers, R K Swamy IPO has the lowest EPS of 7.03 whereas Affle (India) Limited has highest EPS of 18.43.

Company EPS Basic P/E(x)
R K SWAMY Limited 7.03 40.96
Affle (India) Limited 18.43 66.74
Latent View Analytics Limited 7.71 63.7
Vertoz Advertising Limited 9.22 78.07

Promoters of R K SWAMY IPO

1. Srinivasan K Swamy (Sundar Swamy)
2. Narasimhan Krishnaswamy (Shekar Swamy)

The promoters of the company are Srinivasan K Swamy also known as Sundar Swamy, and Narasimhan Krishnaswamy known as Shekar Swamy. Currently they collectively hold 83.03% of the company's shares.

Final Words

This article takes a closer look into R K Swamys IPO scheduled for subscription from 4th March 2024. It suggests that potential investors thoroughly review the company's details, financials and subscription status before applying for the IPO

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About the Author

Tanushree is a seasoned professional with 6 years of experience in the Fintech and Edtech industry.

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