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 the risks carefully before committing capital, especially given the company's financial and operational challenges.
Quality Assessment: Below Average Fundamentals
As of 29 January 2026, Relic Technologies Ltd exhibits below average quality metrics. The company’s long-term fundamental strength remains weak, primarily due to persistent operating losses. Operating profit has declined at an alarming annualised rate of -222.78%, signalling deteriorating core business performance. This negative trend undermines confidence in the company’s ability to generate sustainable earnings and maintain operational efficiency.
Valuation Perspective: Risky Terrain
The valuation grade for Relic Technologies Ltd is classified as risky. Despite the stock’s impressive price appreciation—delivering a 160.03% return over the past year—the underlying profitability metrics tell a different story. The company is currently reporting negative EBITDA, which raises concerns about its cash flow generation and financial health. The stock trades at valuations that are elevated compared to its historical averages, suggesting that the market may be pricing in expectations that are not yet supported by fundamentals.
Financial Trend: Flat and Challenging
The financial trend for Relic Technologies Ltd is flat, reflecting a lack of meaningful improvement in recent quarters. The latest results for September 2025 showed no significant growth, reinforcing the narrative of stagnation. Profitability has deteriorated sharply, with profits falling by over 200% in the past year. This flat trajectory indicates that the company has yet to reverse its operational challenges or demonstrate a clear path to recovery.
Technical Outlook: Mildly Bullish Signals
From a technical standpoint, the stock exhibits mildly bullish characteristics. Recent price movements show positive momentum, with a 4.98% gain on the latest trading day and a 10.77% increase over the past week. The one-month return stands at 8.96%, and the year-to-date gain is 5.53%. These short-term technical indicators suggest some investor interest and buying activity, although they are tempered by the broader fundamental concerns.
Stock Performance Summary
As of 29 January 2026, Relic Technologies Ltd’s stock has delivered mixed performance metrics. While the one-year return is a robust 160.03%, this has been accompanied by significant operational losses and financial strain. The six-month return is nearly flat at -0.20%, indicating recent volatility and uncertainty. Such divergence between price appreciation and fundamental weakness warrants a cautious approach from investors.
Implications for Investors
The 'Sell' rating reflects a comprehensive evaluation of Relic Technologies Ltd’s current standing. Investors should interpret this as a recommendation to limit exposure or consider exiting positions until there is clearer evidence of fundamental improvement. The combination of weak quality, risky valuation, flat financial trends, and only mild technical support suggests that the stock carries elevated risk in the current market environment.
Sector and Market Context
Operating within the Non Banking Financial Company (NBFC) sector, Relic Technologies Ltd faces sector-specific challenges including regulatory scrutiny and credit risk management. The company’s microcap status further adds to liquidity and volatility considerations. Compared to broader market indices and sector peers, the stock’s fundamentals lag behind, reinforcing the cautious stance advised by the current rating.
Turnaround taking shape! This Small Cap from NBFC sector just hit profitability with strong business fundamentals showing up. Catch it before the major breakout happens!
- - Recently turned profitable
- - Strong business fundamentals
- - Pre-breakout opportunity
Understanding the Mojo Score and Grade
The MarketsMOJO score for Relic Technologies Ltd currently stands at 33.0, which corresponds to a 'Sell' grade. This score reflects a composite assessment of quality, valuation, financial trend, and technical factors. The previous grade was 'Strong Sell' with a score of 24, updated on 26 May 2025. The nine-point improvement indicates some positive movement, but the overall score remains in the lower range, signalling caution.
Conclusion: A Cautious Approach Recommended
In summary, Relic Technologies Ltd’s current 'Sell' rating is justified by its below average quality, risky valuation, flat financial trend, and only mildly bullish technical signals. While the stock has shown strong price returns over the past year, these gains are not supported by improving fundamentals or profitability. Investors should carefully weigh these factors and consider the elevated risks before making investment decisions. Monitoring future quarterly results and any shifts in operational performance will be critical to reassessing the stock’s outlook.
Unlock special upgrade rates for a limited period. Start Saving Now →
