Current Rating and Its Significance
MarketsMOJO’s 'Sell' rating for Relic Technologies Ltd indicates a cautious stance towards the stock, suggesting that investors should consider reducing exposure or avoiding new purchases at this time. This rating reflects a comprehensive evaluation of the company’s quality, valuation, financial trend, and technical indicators as they stand today, rather than solely relying on past performance or historical data.
Background on the Rating Update
The rating was revised from 'Strong Sell' to 'Sell' on 26 May 2025, accompanied by an improvement in the Mojo Score from 24 to 33 points. This change signalled a slight easing of the negative outlook but maintained a cautious recommendation. It is important to note that all financial data and performance metrics referenced below are current as of 15 January 2026, ensuring that investors receive the latest insights into the company’s position.
Quality Assessment: Below Average Fundamentals
As of 15 January 2026, Relic Technologies Ltd’s quality grade remains below average. The company continues to face challenges in establishing strong long-term fundamental strength. Operating losses persist, with operating profit declining at an annualised rate of -222.78%, signalling significant difficulties in generating sustainable earnings. This weak fundamental base raises concerns about the company’s ability to deliver consistent shareholder value over time.
Valuation: Risky Investment Profile
The valuation grade for Relic Technologies Ltd is classified as risky. Despite the stock’s impressive one-year return of 224.56%, the company’s profitability has deteriorated sharply, with profits falling by -203% over the same period. Negative EBITDA further compounds the risk profile, indicating that the company is currently not generating sufficient earnings before interest, taxes, depreciation, and amortisation to cover its operational costs. Investors should be wary of the stock’s elevated valuation relative to its earnings performance.
Financial Trend: Flat Performance Amidst Volatility
The financial grade is flat, reflecting a lack of meaningful improvement or deterioration in recent quarters. The latest results for September 2025 showed no significant growth, underscoring the company’s struggle to reverse its operating losses or improve profitability. This stagnation in financial performance suggests that the company is yet to find a clear path to recovery or growth, which is a critical consideration for investors evaluating the stock’s medium-term prospects.
Technical Outlook: Mildly Bullish Signals
Technically, the stock exhibits a mildly bullish grade. Short-term price movements show some positive momentum, with a modest day change of +0.24% and a year-to-date gain of +0.22%. However, the stock has experienced volatility over the past month and quarter, with declines of -2.59% and -1.74% respectively. While these technical indicators suggest some buying interest, they are insufficient to offset the fundamental and valuation concerns that weigh heavily on the stock’s overall outlook.
Stock Returns and Market Performance
As of 15 January 2026, Relic Technologies Ltd’s stock has delivered a remarkable 224.56% return over the past year. This strong price appreciation contrasts sharply with the company’s deteriorating profitability and operating losses, highlighting a disconnect between market sentiment and underlying fundamentals. Investors should carefully consider whether the current price levels are justified given the company’s financial challenges and risk profile.
Sector and Market Context
Operating within the Non Banking Financial Company (NBFC) sector, Relic Technologies Ltd faces sector-specific headwinds including regulatory scrutiny, credit risk, and market volatility. The company’s microcap status further adds to liquidity and volatility risks. Compared to broader market indices and sector peers, the stock’s valuation and financial metrics remain less favourable, reinforcing the cautious 'Sell' rating.
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What This Rating Means for Investors
The 'Sell' rating advises investors to exercise caution with Relic Technologies Ltd. While the stock has shown strong price gains recently, the underlying financial health remains fragile, with operating losses and negative EBITDA signalling ongoing challenges. The risky valuation and flat financial trend suggest that the stock may not sustain its recent gains without a meaningful turnaround in fundamentals.
Investors should weigh the mildly bullish technical signals against the company’s weak quality and valuation metrics. For those holding the stock, it may be prudent to reassess exposure and consider risk tolerance carefully. Prospective investors are advised to monitor the company’s financial performance closely and seek clearer signs of recovery before initiating positions.
Summary
In summary, Relic Technologies Ltd’s current 'Sell' rating by MarketsMOJO reflects a balanced assessment of its below-average quality, risky valuation, flat financial trend, and mildly bullish technical outlook. The rating update on 26 May 2025 marked a slight improvement from 'Strong Sell', but the company’s fundamentals as of 15 January 2026 continue to warrant caution. Investors should remain vigilant and prioritise risk management when considering this stock within their portfolios.
Company Profile Snapshot
Relic Technologies Ltd operates as a microcap entity within the NBFC sector. The company’s market capitalisation remains modest, and it faces significant operational challenges that have impacted profitability and growth. The current Mojo Score of 33.0 aligns with the 'Sell' grade, reflecting the overall risk and uncertainty surrounding the stock’s outlook.
Performance Metrics at a Glance (As of 15 January 2026)
Daily price change: +0.24%
Weekly change: -0.75%
Monthly change: -2.59%
Quarterly change: -1.74%
Six-month change: 0.00%
Year-to-date change: +0.22%
One-year return: +224.56%
Financial Highlights
Operating profit growth rate: -222.78% annually
Profit decline over past year: -203%
EBITDA status: Negative
Fundamental strength: Weak long term
These figures underscore the disconnect between the stock’s price performance and its underlying financial health, reinforcing the rationale behind the current 'Sell' rating.
Conclusion
Relic Technologies Ltd’s current rating and financial profile suggest that investors should approach the stock with caution. While technical indicators offer some optimism, the company’s fundamental weaknesses and risky valuation present significant headwinds. Continuous monitoring of financial results and market conditions will be essential for investors considering this stock in the coming months.
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