Current Rating and Its Implications
MarketsMOJO’s 'Sell' rating on Radhe Developers (India) Ltd indicates a cautious stance for investors considering this stock. This recommendation suggests that the stock is expected to underperform relative to the broader market or its sector peers in the near to medium term. Investors should carefully evaluate the underlying factors that have led to this rating before making investment decisions.
Here’s How Radhe Developers Looks Today
As of 06 January 2026, Radhe Developers operates within the Realty sector and is classified as a microcap company. The stock’s Mojo Score currently stands at 36.0, reflecting a 'Sell' grade, down from a previous 'Hold' rating with a score of 58. This decline in score by 22 points underscores the challenges the company faces in various performance parameters.
The stock price has experienced volatility recently, with a 1-day decline of 1.02% and a 3-month drop of 11.42%. Over the past year, the stock has delivered a negative return of 35.33%, significantly underperforming the BSE500 benchmark consistently over the last three years. Despite this, the company’s profits have shown a remarkable increase of 348.9% over the same period, indicating some operational improvements amid market headwinds.
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- - Fundamental Analysis
- - Technical Signals
- - Peer Comparison
Quality Assessment
The company’s quality grade is assessed as average. This suggests that while Radhe Developers maintains a stable operational base, it does not exhibit standout characteristics in terms of profitability, efficiency, or competitive advantage. Investors should note that average quality may limit the stock’s ability to generate superior returns in challenging market conditions.
Valuation Perspective
Valuation is a critical factor influencing the current rating. Radhe Developers is considered very expensive, trading at a premium relative to its capital employed. The company’s Return on Capital Employed (ROCE) stands at 6.9%, which is modest given the valuation metrics. The Enterprise Value to Capital Employed ratio is 1.4, indicating that the market values the company at a significant premium to the capital it employs. Despite this, the stock trades at a discount compared to its peers’ average historical valuations, which may offer some relative value but does not fully offset the high absolute valuation.
Financial Trend
Financially, Radhe Developers shows a positive trend. The substantial profit growth of 348.9% over the past year is a notable highlight, reflecting operational improvements or one-off gains. The company’s PEG ratio of 0.1 suggests that earnings growth is not fully priced into the stock, which could be a point of interest for value-oriented investors. However, the overall negative stock returns and underperformance against benchmarks temper this optimism.
Technical Analysis
From a technical standpoint, the stock is graded bearish. Recent price movements, including a 1.02% decline on the latest trading day and a 3-month negative return of 11.42%, indicate downward momentum. This bearish technical outlook aligns with the 'Sell' rating, signalling that market sentiment remains cautious and that the stock may face further pressure in the near term.
Investment Considerations
For investors, the 'Sell' rating on Radhe Developers (India) Ltd serves as a warning to approach the stock with caution. While the company’s improving profits and relatively low PEG ratio may suggest some underlying strength, the high valuation, average quality, and bearish technical signals collectively point to limited upside potential. The consistent underperformance against the BSE500 benchmark over multiple years further emphasises the challenges faced by the stock.
Investors should weigh these factors carefully, considering their risk tolerance and investment horizon. Those seeking growth opportunities might find better prospects elsewhere, while value investors may want to monitor the stock for signs of a more sustainable turnaround before committing capital.
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Summary
In summary, Radhe Developers (India) Ltd’s current 'Sell' rating by MarketsMOJO, last updated on 16 Oct 2025, reflects a comprehensive evaluation of its present-day fundamentals as of 06 January 2026. The stock’s average quality, very expensive valuation, positive financial trend, and bearish technical outlook collectively inform this cautious recommendation. Investors should consider these factors carefully and remain vigilant about the stock’s performance relative to broader market conditions and sector peers.
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