R K Swamy Ltd: Is It a Deep Value Opportunity?

R K Swamy Ltd has a deep value score of 84/100 (rated Very Strong). This score is calculated from three components

• Earnings Score: 36/40 — measures PAT growth momentum across quarters
• Underperformance Score: 26/35 — how much the stock trails Nifty 500 (deeper underperformance = higher contrarian signal)
• Quality Score: 22/25 — operational quality (margins, revenue growth, valuation)

R K Swamy Ltd's quarterly profit (PAT) growth trajectory

• Latest Quarter PAT Growth (QoQ): +480%
• Previous Quarter PAT Growth (QoQ): +409%
• 2 Quarters Ago PAT Growth (QoQ): -81%
• PAT Acceleration: +280.4pp (profits are accelerating)
• 2 consecutive quarters of positive PAT growth

R K Swamy Ltd is underperforming the market despite improving earnings — this is the core deep value thesis

• 1-Year Return vs Nifty 500: -46%
• 6-Month Return vs Nifty 500: -5%
• 3-Month Return vs Nifty 500: +3%
• Yet average quarterly PAT growth is +269% — earnings are improving
• The market often takes time to re-rate stocks with improving fundamentals. This gap between price performance and earnings improvement is what deep value research seeks to identify.

R K Swamy Ltd's earnings momentum is Accelerating — profit growth is speeding up.

• PAT QoQ progression: -81% → +409% → +480% (2Q ago → 1Q ago → latest)
• Acceleration: +280.4pp
• PAT YoY Growth: +33%

R K Swamy Ltd's valuation metrics

• Price-to-Earnings (PE): 23.0x
• Price-to-Book (PB): 1.9x
• PEG Ratio: 0.5x

R K Swamy Ltd's revenue and margin trends

• Latest Quarter Revenue Growth (QoQ): +14%
• Average Quarterly Revenue Growth: +10%
• Revenue Acceleration: +9.4pp
• Latest OPM Change: +10.7pp (margins expanding)
• Average OPM Change: +4.6pp
• Revenue YoY: +20%

R K Swamy Ltd's trailing twelve month (TTM) performance

• TTM PAT: ₹23 Cr
• TTM PAT Growth: +21.1% YoY
• TTM Revenue: ₹342 Cr
• TTM Revenue Growth: +15.9% YoY
• TTM Operating Margin: 12.9%

R K Swamy Ltd key facts

• Sector: Miscellaneous
• Market Cap: ₹509 Cr
• Rank in Miscellaneous: #1 by value score
• Overall rank among all deep value stocks: #2

R K Swamy Ltd shows strong deep value signals — good score (84/100), accelerating earnings, and significant underperformance vs Nifty.

• Value Score: 84/100 (Very Strong)
• Earnings: Accelerating
• 1Y Underperformance: -46% vs Nifty 500

Other deep value stocks in Miscellaneous

• Kaveri Seed Company Ltd — monitoring
• TCC Concept Ltd — Score 71/100, Strong, earnings accelerating
• Unitech Ltd — Score 54/100, Average, earnings accelerating

Miscellaneous deep value sector overview

• 3 deep value stocks in this sector
• Average value score: 70/100
• Avg PAT acceleration: +118.9pp
• Top pick: R K Swamy Ltd

Deep value investing studies stocks that are underperforming the market despite showing improving fundamentals. The thesis is that the market has not yet recognized the earnings recovery, creating a potential valuation gap. It requires patience — recovery can take several quarters.

The deep value score (0-100) combines three factors:

- Earnings (0-40 pts): PAT growth across last 3 quarters, acceleration, and consecutive growth - Underperformance (0-35 pts): How much the stock trails Nifty 500 over 1Y, 6M, 3M (deeper underperformance = higher score) - Quality (0-25 pts): Revenue growth, margin trends, and valuation metrics (PEG, P/B)

Higher score indicates a stronger contrarian research signal.