Relic Technologies Ltd is Rated Sell

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 outlook. It is important to understand that while the rating was assigned on 26 May 2025, the following analysis is based on the most recent data available as of 23 February 2026, ensuring relevance for current investment decisions.

Quality Assessment: Below Average Fundamentals

As of 23 February 2026, Relic Technologies Ltd exhibits below average quality metrics. The company continues to face operational challenges, with operating losses impacting its long-term fundamental strength. Specifically, operating profit has declined at an annualised rate of -228.62%, signalling significant difficulties in generating sustainable earnings. The latest quarterly results for December 2025 reveal a PBDIT (Profit Before Depreciation, Interest and Taxes) of Rs -1.64 crore and a PBT (Profit Before Tax) less other income of Rs -1.74 crore, both at their lowest levels. These figures underscore the ongoing pressure on the company’s core profitability and highlight the risks associated with its business model.

Valuation: Risky Terrain

The valuation of Relic Technologies Ltd remains risky when compared to its historical averages. Despite the stock delivering a remarkable 81.27% return over the past year as of 23 February 2026, this price appreciation contrasts sharply with a 34.8% decline in profits during the same period. This divergence suggests that the market may be pricing in expectations not yet supported by the company’s financial performance. Investors should be wary of this disconnect, as it indicates potential overvaluation relative to the underlying fundamentals.

Financial Trend: Flat and Challenging

The financial trend for Relic Technologies Ltd is currently flat, reflecting stagnation rather than growth. The company’s financial grade is assessed as flat, with no significant improvement in key metrics over recent quarters. Operating losses and negative EBITDA continue to weigh heavily on the balance sheet, limiting the company’s ability to generate positive cash flows or reinvest in growth initiatives. This flat trend reinforces the cautious stance embedded in the 'Sell' rating, as the company has yet to demonstrate a clear path to financial recovery.

Technical Outlook: Bullish Momentum Amidst Challenges

Interestingly, the technical grade for Relic Technologies Ltd is bullish, indicating positive price momentum in the stock’s trading patterns. As of 23 February 2026, the stock recorded a daily gain of 3.85%, with modest gains over one month (+2.66%) and six months (+2.34%). Year-to-date returns stand at +2.76%, while the one-year return is notably strong at +81.27%. This technical strength suggests that market sentiment remains optimistic despite the company’s fundamental challenges. However, investors should balance this bullish technical outlook with the underlying financial risks before making investment decisions.

Summary for Investors

In summary, Relic Technologies Ltd’s 'Sell' rating reflects a complex picture. The company struggles with below average quality and risky valuation metrics, compounded by flat financial trends and ongoing operating losses. While technical indicators show bullish momentum, this is not sufficient to offset the fundamental concerns. Investors should approach the stock with caution, recognising that the current rating advises prudence and potential reduction of holdings rather than accumulation.

Market Capitalisation and Sector Context

Relic Technologies Ltd operates within the Non Banking Financial Company (NBFC) sector and is classified as a microcap stock. This positioning often entails higher volatility and risk compared to larger, more established companies. The NBFC sector itself has faced regulatory and economic headwinds in recent years, which may contribute to the company’s operational difficulties. Investors should consider these sector-specific risks alongside the company’s individual performance when evaluating the stock.

Stock Performance Overview

The stock’s recent performance shows mixed signals. While the one-day gain of 3.85% as of 23 February 2026 reflects short-term buying interest, the one-week return is slightly negative at -0.77%. Over longer periods, the stock has delivered modest gains: +0.31% over three months and +2.34% over six months. The year-to-date return of +2.76% is positive but modest relative to the substantial one-year return of +81.27%. This disparity suggests that the stock experienced significant appreciation earlier in the year, possibly driven by speculative factors rather than fundamental improvements.

Investor Takeaway

For investors, the 'Sell' rating on Relic Technologies Ltd serves as a cautionary signal. The company’s weak fundamental quality, risky valuation, and flat financial trend highlight the challenges ahead. Although technical indicators show some bullish momentum, this should not overshadow the underlying risks. Investors seeking stability and growth may find better opportunities elsewhere, while those with a higher risk tolerance should monitor the company closely for any signs of operational turnaround or financial improvement.

Conclusion

Relic Technologies Ltd’s current 'Sell' rating by MarketsMOJO, last updated on 26 May 2025, is grounded in a thorough analysis of its present-day fundamentals and market behaviour as of 23 February 2026. The rating advises investors to exercise caution, given the company’s ongoing operating losses, risky valuation, and flat financial trajectory, despite some positive technical signals. This comprehensive view equips investors with the necessary insights to make informed decisions in a complex and evolving market environment.

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