Company Overview

Incorporated in 1986, Crayons Advertising Ltd is in the business of advertising, branding, and communication. Originally incorporated on July 3, 1986, as "Crayons Advertising and Marketing Private Limited," the Company later converted from a Private Company to a Public Company, consequently changing its name to `Crayons Advertising Limited`. A Fresh Certificate of Incorporation was issued on November 22, 2022, by the Registrar of Companies, NCT of Delhi and Haryana.

Crayons Advertising Ltd is an India-based advertising solutions company. The Company is engaged in providing an ecosystem and an end-to-end ad-tech communication solution platform for advertising media services. It is a full-fledged innovative advertising solutions provider, primarily operating in Delhi, Mumbai, Chandigarh, Chennai, Kolkata, and Lucknow.

Business Operations and Services

The company provides a comprehensive range of advertising and communication services across multiple segments. These include:

- Print Media: Newspapers, brochures, magazines.

- Electronic Media: Television channels, Frequency Modulation (FM) channels.

- Outdoor Media Services: Advertising hoardings.

The company operates in five key locations: New Delhi, Mumbai, Chennai, Kolkata, and Lucknow.

Services Offered:

- Strategy & Consulting: Digital Brand Building & Communications, Social Media Strategy, Content & Engagement Strategy.

- Creative Services: Campaign Conceptualization & Design, Digital Content, Integrated Campaign, UI/UX Design.

- Execution & Management: Social Platform Management, Website Development & Management, Proto typing, Film & Photo Studio, Influencer Outreach, Mobile Application Development, SEO.

- Media Buying: Mobile Marketing, Search Engine Marketing, Email Marketing, Display, Video, Social, and Native Content Alliances.

- Data Analytics: Social Listening, Website Analytics, Online Reputation Management.

The Company executes advertising campaigns across various media to help client businesses and brands grow. It offers a complete range of designing, media, and printing services. Its key strength lies in media buying, where the Company aligns media usage with clients' marketing objectives. It utilizes various Digital Media Tools such as Marin Software, AdParlor, AdEspresso, Criteo, Adobe Marketing Cloud, App Nexus/Xandr, ReTargeter, Nielsen, and Moat.

Market Position and Stock Performance

Market Capitalization: ₹156 Crore (down -52.6% in 1 year) as per latest available data.

Stock Symbol: CRAYONS

ISIN: INE0OFK01019

52-Week Range: ₹148 / ₹42.2

The company's stock has experienced significant volatility over the past year. Over the past 6 months, the Crayons Advertising share price has decreased by 38.21%, and in the last one year, it has decreased by 50.47%. As per Value Research classification, it is a Small Cap company.

Financial Performance and Key Metrics

Revenue and Profitability

For the year ended 2024, Crayons Advertising Ltd posted a profit of Rs 17.19 crore on a total income of Rs 233.92 crore. The company has an operating revenue of Rs. 233.92 Cr. on a trailing 12-month basis. Key highlights include:

- Annual Revenue De-growth: -27% (needs improvement)

- Pre-tax Margin: 10% (healthy)

- Return on Equity (ROE): 16% (good)

Key Financial Ratios

The company's valuation metrics show attractive levels compared to peers:

- Stock P/E: 23.1 (based on one source)

- P/E Ratio: 6.42 times as on 09-May-2025, representing an 83% discount to its peers' median range of 37.04 times.

- P/B Ratio: 1.08 times as on 09-May-2025, representing a 73% discount to its peers' median range of 4.02 times.

Corporate Governance and Management

- Chairman & Managing Director: Kunal Lalani

- Promoter Holding: 73.5% (as of December 2024)

There is no promoter pledging in Crayons Advertising Ltd, indicating a healthy corporate governance structure. The company is exempt from the Corporate Governance Report under SEBI LODR Regulation 27(2) due to its SME listing as of July 11, 2025. Mr. Lalani, the promoter, began his advertising media services career in 1986 by securing advertisement assignments from renowned brands.

Recent Developments and Capital Raising

The Company completed a public issue of 64,30,000 Equity Shares in May 2023, raising an aggregate of Rs 41.79 Cr through a Fresh Issue. This was a significant milestone in the company's growth journey.

Recent corporate announcements include Crayons Advertising joining a consortium to operate the Delhi Premier League franchise 'New Delhi Tigers' as of July 10, 2025, demonstrating diversification into sports marketing.

Financial Health and Balance Sheet

- Debt to Equity Ratio: 3% (reasonable, signaling a healthy balance sheet).

While the company has maintained profitability, it faces growth challenges. It has delivered a poor sales growth of 3.61% over the past five years, indicating a need for strategic initiatives to accelerate growth in the competitive advertising industry. The company is also not paying dividends, which may be a concern for income-focused investors.

Crayons Advertising Ltd operates in the dynamic advertising and marketing communications sector, offering end-to-end solutions to help brands enhance their market presence. While the company maintains profitability and a strong balance sheet, investors should consider the recent stock price volatility and growth challenges when making investment decisions.