Recent Price Movement and Market Context
On 20 Jan 2026, R K Swamy Ltd’s stock price fell by 1.87%, underperforming the Sensex which declined by 0.41% on the same day. The stock has been on a losing streak for three consecutive days, accumulating a negative return of 6.32% over this period. Its performance over longer intervals paints a more concerning picture: a 5.18% decline over the past week versus a 0.87% drop in the Sensex, a 10.16% fall in one month compared to the Sensex’s 2.39%, and a steep 24.00% drop over three months against the Sensex’s modest 1.73% decline.
Most notably, the stock has plummeted 60.51% over the last year, while the Sensex has gained 7.56% during the same timeframe. Year-to-date, R K Swamy Ltd has declined 8.35%, lagging behind the Sensex’s 2.72% fall. Over the medium to long term, the stock has failed to generate any returns in the last three and five years, contrasting sharply with the Sensex’s gains of 36.75% and 66.50% respectively. The ten-year performance remains flat at 0.00%, while the Sensex surged 244.54%.
Currently, the stock trades below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a persistent bearish trend.
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Financial Performance and Profitability
The company reported negative results in the quarter ending September 2025, with a Profit After Tax (PAT) of Rs.0.54 crore, representing a sharp decline of 88.8% compared to the average PAT of the previous four quarters. This significant drop in profitability has contributed to the stock’s weak performance.
Non-operating income accounted for 87.22% of the Profit Before Tax (PBT) in the same quarter, indicating that core business earnings have been limited. This reliance on non-operating income highlights the challenges faced in generating sustainable profits from primary operations.
Over the past year, profits have contracted by 53%, further underscoring the financial strain on the company. Despite these setbacks, the company maintains a low average Debt to Equity ratio of zero, reflecting a debt-free capital structure.
Valuation and Market Perception
R K Swamy Ltd currently holds a Mojo Score of 31.0 and a Mojo Grade of Sell, an improvement from its previous Strong Sell rating as of 22 Dec 2025. The Market Capitalisation Grade stands at 4, indicating a relatively small market cap within its sector.
The stock is trading at a Price to Book Value of 2.2, which is considered very attractive relative to its peers’ historical valuations. Its Return on Equity (ROE) is 7.9%, suggesting moderate profitability from shareholders’ equity.
Despite these valuation metrics, the stock’s performance remains below par both in the near term and over extended periods. It has underperformed the BSE500 index over the last three years, one year, and three months, reflecting persistent challenges in delivering shareholder value.
Shareholding and Sectoral Position
The majority shareholding is held by promoters, indicating concentrated ownership. The company operates within the Media & Entertainment industry, a sector that has experienced varied performance trends in recent years.
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Summary of Performance Trends
R K Swamy Ltd’s stock has demonstrated a consistent pattern of decline across multiple time horizons, with the most pronounced losses occurring over the past year. The stock’s inability to keep pace with broader market indices and sector benchmarks highlights the severity of its current position.
Its recent all-time low of Rs.102.5 is a reflection of these cumulative pressures, underscored by weak quarterly earnings and a reliance on non-operating income to sustain profitability. While valuation metrics suggest some degree of attractiveness, the overall trend remains subdued.
Trading below all major moving averages further confirms the prevailing negative momentum in the stock price.
Market Capitalisation and Sector Comparison
With a Market Cap Grade of 4, R K Swamy Ltd is classified among smaller capitalisation stocks within the Media & Entertainment sector. This positioning often entails higher volatility and sensitivity to sectoral shifts.
The stock’s underperformance relative to the BSE500 and Sensex indices over multiple periods indicates challenges in maintaining competitive standing within the broader market environment.
Conclusion
The recent all-time low reached by R K Swamy Ltd’s shares encapsulates a period of sustained underperformance and financial contraction. The stock’s decline has been marked by significant drops in profitability, a heavy dependence on non-operating income, and a consistent failure to outperform market benchmarks.
While the company’s low debt levels and valuation metrics offer some positive context, the prevailing market sentiment and price action reflect ongoing difficulties in the business environment and investor confidence.
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