Current Rating and Its Significance
MarketsMOJO currently assigns a 'Sell' rating to Relic Technologies Ltd, indicating a cautious stance for investors. This rating 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 consider this recommendation as a signal to evaluate their exposure carefully, balancing potential risks against any speculative opportunities.
The rating was revised from 'Strong Sell' to 'Sell' on 26 May 2025, reflecting a modest improvement in the company's outlook. Despite this, the 'Sell' grade still denotes concerns about the stock's quality and valuation, which investors must weigh alongside other factors.
Here's How the Stock Looks Today: Fundamentals and Returns
As of 26 December 2025, Relic Technologies Ltd remains a microcap entity operating within the Non Banking Financial Company (NBFC) sector. The company's financial health continues to show signs of weakness, with operating losses contributing to a below-average quality grade. Specifically, the operating profit has declined at an annualised rate of -222.78%, signalling significant challenges in generating sustainable earnings.
Despite these fundamental headwinds, the stock has delivered a remarkable return of +235.50% over the past year, reflecting heightened market speculation or other non-fundamental factors influencing its price. However, this price appreciation contrasts sharply with the company's deteriorating profitability, as profits have fallen by -203% over the same period. This divergence underscores the risky nature of the stock's valuation.
Currently, the company's financial metrics indicate flat results in the September 2025 quarter, with no significant improvement in earnings or cash flow generation. The negative EBITDA further emphasises the risk profile, as the stock trades at valuations that are considered risky compared to its historical averages.
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- - Fundamental Analysis
- - Technical Signals
- - Peer Comparison
Quality Assessment
The quality grade for Relic Technologies Ltd is currently below average. This assessment reflects the company's ongoing operating losses and weak long-term fundamental strength. The negative growth in operating profit at an annual rate of -222.78% highlights the difficulties the company faces in establishing a stable earnings base. For investors, this signals caution as the company has yet to demonstrate a consistent ability to generate profits or improve operational efficiency.
Valuation Considerations
Valuation remains a critical concern, with the stock graded as risky. Despite the impressive price returns over the past year, the underlying financial performance does not support such valuations. Negative EBITDA and deteriorating profits suggest that the current market price may be disconnected from the company's intrinsic value. Investors should be wary of potential volatility and reassess the stock's price in relation to its fundamentals before committing capital.
Financial Trend Analysis
The financial trend for Relic Technologies Ltd is flat, indicating no meaningful improvement or deterioration in recent quarters. The flat results reported in September 2025 reinforce this view, showing that the company has not yet reversed its negative earnings trajectory. This stagnation in financial performance limits the stock's appeal for investors seeking growth or turnaround opportunities.
Technical Outlook
Technically, the stock exhibits a mildly bullish grade. This suggests some positive momentum or short-term price strength, which may be driven by market sentiment or speculative interest rather than fundamental improvements. While this technical signal could offer trading opportunities, it does not offset the broader concerns raised by the company's financial and valuation metrics.
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Investor Takeaway
For investors, the 'Sell' rating on Relic Technologies Ltd serves as a cautionary signal. While the stock has delivered substantial returns over the past year, these gains are not underpinned by improving fundamentals or a positive financial trend. The company's ongoing operating losses, risky valuation, and flat financial performance suggest that the stock carries significant downside risk.
Investors should carefully consider their risk tolerance and investment horizon before increasing exposure to this microcap NBFC. Those seeking stable growth or value may find more attractive opportunities elsewhere, while speculative traders might monitor technical signals for short-term moves but remain mindful of the underlying financial challenges.
In summary, the current 'Sell' rating reflects a comprehensive assessment of Relic Technologies Ltd's quality, valuation, financial trend, and technical outlook as of 26 December 2025. This balanced view aims to equip investors with the insights needed to make informed decisions in a complex market environment.
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