Current Rating and Its Significance
MarketsMOJO currently assigns Relic Technologies Ltd a 'Sell' rating, reflecting a cautious stance on the stock. This rating indicates that investors should consider reducing exposure or avoiding new purchases at present, given the company's financial and operational challenges. The 'Sell' grade is derived from a comprehensive assessment of four key parameters: Quality, Valuation, Financial Trend, and Technicals, each contributing to the overall investment recommendation.
Quality Assessment: Below Average Fundamentals
As of 11 February 2026, Relic Technologies Ltd exhibits below average quality metrics. The company’s long-term fundamental strength is weak, primarily due to sustained operating losses. Operating profit has declined at an alarming annual rate of -222.78%, signalling deteriorating core business performance. This negative trajectory undermines confidence in the company’s ability to generate consistent earnings and maintain operational stability over time.
Moreover, the company reported flat financial results in the quarter ending September 2025, indicating a lack of meaningful growth momentum. Such stagnation in earnings growth further weighs on the quality grade, suggesting that the company is struggling to improve its profitability or expand its business effectively.
Valuation: Risky Investment Profile
The valuation of Relic Technologies Ltd is currently considered risky. Despite the stock’s impressive price appreciation, with a one-year return of 104.73% as of 11 February 2026, this surge is not supported by underlying profitability. The company is trading with negative EBITDA, which raises concerns about its ability to sustain earnings and cash flow generation in the near term.
Compared to its historical valuation averages, the stock is priced at a premium that may not be justified by its financial fundamentals. This disconnect between price and profit metrics suggests heightened risk for investors, as the market may be pricing in expectations that are not yet realised in the company’s financial performance.
Financial Trend: Flat and Challenging
The financial trend for Relic Technologies Ltd remains flat, reflecting a lack of significant improvement or deterioration in recent quarters. The company’s operating losses and negative EBITDA highlight ongoing challenges in generating sustainable profits. Over the past year, profits have fallen by -203%, underscoring the difficulties faced in reversing the downward earnings trend.
While the stock price has delivered strong returns, this has not translated into improved financial health. Investors should be cautious, as the disconnect between stock performance and financial results may indicate speculative trading rather than fundamental strength.
Technical Outlook: Mildly Bullish Signals
From a technical perspective, Relic Technologies Ltd shows mildly bullish indicators. The stock has recorded modest gains over recent periods, including a 0.29% increase on the latest trading day and a 3.40% rise over the past six months. Shorter-term returns such as 1 week (+1.84%) and 1 month (+1.16%) also suggest some positive momentum.
However, these technical signals are tempered by the company’s weak fundamentals and risky valuation. While the mild bullishness may attract short-term traders, long-term investors should weigh these factors carefully against the broader financial challenges.
Here's How the Stock Looks Today
As of 11 February 2026, Relic Technologies Ltd remains a microcap entity within the Non Banking Financial Company (NBFC) sector. The company’s Mojo Score stands at 33.0, reflecting its 'Sell' grade, which is an improvement from the previous 'Strong Sell' rating with a score of 24. This change, effective from 26 May 2025, indicates a slight easing in negative sentiment but still advises caution.
The stock’s recent price movements show resilience, with a year-to-date return of 1.13% and a remarkable one-year return exceeding 100%. Despite this, the underlying financials reveal operating losses and a lack of profit growth, which are critical considerations for investors seeking sustainable value.
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Investor Implications and Considerations
For investors, the 'Sell' rating on Relic Technologies Ltd signals a need for prudence. The combination of weak quality metrics, risky valuation, flat financial trends, and only mild technical support suggests that the stock carries elevated risk. Investors should carefully evaluate their risk tolerance and investment horizon before considering exposure to this microcap NBFC.
While the stock’s price appreciation over the past year is notable, it is not underpinned by improving profitability or operational strength. This divergence may reflect speculative interest or market sentiment rather than fundamental value creation. Consequently, the current recommendation advises caution and suggests that investors may be better served by seeking opportunities with stronger financial health and clearer growth prospects.
In summary, the 'Sell' rating reflects a comprehensive analysis of Relic Technologies Ltd’s current standing as of 11 February 2026. Investors should monitor the company’s financial performance closely and remain alert to any changes in fundamentals or market conditions that could alter its outlook.
Summary of Key Metrics as of 11 February 2026
• Mojo Score: 33.0 (Sell grade)
• Market Capitalisation: Microcap segment
• Operating Profit Growth Rate: -222.78% annually
• Profit Decline Over Past Year: -203%
• Stock Returns: 1D +0.29%, 1W +1.84%, 1M +1.16%, 6M +3.40%, YTD +1.13%, 1Y +104.73%
• Valuation: Risky due to negative EBITDA
• Technical Grade: Mildly bullish
These figures collectively inform the current 'Sell' rating, underscoring the importance of a cautious approach to this stock.
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