Key Events This Week
Feb 9: Stock opens strong at Rs.71.49, up 2.80%
Feb 10: Continued rally to Rs.73.93 (+3.41%)
Feb 12: Q3 FY26 results reveal record profit surge but margin concerns
Feb 13: Bearish technical momentum emerges amid valuation upgrade
Strong Start to the Week on Positive Market Sentiment
Radhika Jeweltech began the week on a robust note, opening at Rs.71.49 on 9 Feb 2026, a 2.80% increase from the previous Friday’s close of Rs.69.54. This outpaced the Sensex’s 1.04% gain to 37,113.23, signalling early investor optimism. The stock’s momentum accelerated on 10 Feb, climbing another 3.41% to Rs.73.93, while the Sensex rose a modest 0.25%. These gains were supported by healthy volumes of 62,998 and 54,736 shares respectively, indicating strong buying interest.
Q3 FY26 Results Highlight Profit Surge but Raise Margin Concerns
On 12 Feb, Radhika Jeweltech reported its Q3 FY26 results, revealing a record profit surge that initially buoyed sentiment. However, the announcement also flagged margin pressures, tempering enthusiasm. The stock price reacted negatively, falling 2.65% to Rs.71.87 on relatively lower volume of 31,775 shares. This decline contrasted with the Sensex’s 0.56% drop, reflecting sector-specific caution despite broader market weakness.
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Bearish Technical Momentum Emerges Amid Mixed Signals
On 13 Feb, the stock closed lower at Rs.70.79, down 1.50% on thin volume of 17,472 shares, while the Sensex declined 1.40%. Technical analysis revealed a shift from mildly bearish to more pronounced bearish momentum. Key indicators such as the Moving Average Convergence Divergence (MACD) on weekly and monthly charts turned bearish, signalling weakening momentum. The Relative Strength Index (RSI) remained neutral, suggesting no immediate oversold or overbought conditions.
Bollinger Bands indicated increased volatility with prices trading near the lower band, often a precursor to further downside pressure. The Know Sure Thing (KST) oscillator also confirmed bearish trends, while the On-Balance Volume (OBV) showed mild bullishness on the weekly chart, hinting at some underlying buying interest despite price declines.
Valuation Upgrade Reflects Renewed Price Attractiveness
Alongside technical developments, Radhika Jeweltech’s valuation metrics improved notably. The price-to-earnings (P/E) ratio moderated to 10.88, positioning the stock attractively relative to peers such as Khazanchi Jewell (P/E 42.65) and Asian Star Co. (P/E 30.39). The price-to-book value (P/BV) ratio stood at 2.64, consistent with sector norms. Enterprise value to EBITDA (EV/EBITDA) at 7.93 and EV to EBIT at 8.06 further underscored operational efficiency and fair valuation.
Return on capital employed (ROCE) and return on equity (ROE) both hovered around 24.3%, signalling strong profitability. These fundamentals supported an upgrade in the MarketsMOJO mojo grade from Sell to Hold as of 10 Feb 2026, with the mojo score rising to 51.0. Despite this, the stock’s proximity to its 52-week low of Rs.64.00 and recent price volatility counsel caution.
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Daily Price Comparison: Radhika Jeweltech vs Sensex
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-09 | Rs.71.49 | +2.80% | 37,113.23 | +1.04% |
| 2026-02-10 | Rs.73.93 | +3.41% | 37,207.34 | +0.25% |
| 2026-02-11 | Rs.73.83 | -0.14% | 37,256.72 | +0.13% |
| 2026-02-12 | Rs.71.87 | -2.65% | 37,049.40 | -0.56% |
| 2026-02-13 | Rs.70.79 | -1.50% | 36,532.48 | -1.40% |
Key Takeaways
Positive Signals: The stock outperformed the Sensex by 2.34% over the week, supported by strong early-week gains and a record profit surge in Q3 FY26. Improved valuation metrics, including a moderate P/E of 10.88 and robust ROCE/ROE of 24.3%, underpin the recent upgrade to a Hold rating by MarketsMOJO. Mildly bullish volume indicators suggest some underlying buying interest despite price weakness.
Cautionary Signals: Technical indicators have shifted to a more bearish stance, with MACD and KST oscillators signalling weakening momentum. The stock closed near its 52-week low and experienced declines in the latter half of the week amid margin concerns flagged in the quarterly results. The negative 1-year return of -26.71% contrasts with the Sensex’s positive 9.85%, highlighting sector-specific challenges and volatility.
Conclusion
Radhika Jeweltech Ltd’s week was characterised by a strong start driven by positive earnings and valuation improvements, followed by a technical pullback reflecting caution among investors. The stock’s 1.80% weekly gain against a Sensex decline of 0.54% demonstrates relative resilience, yet the emerging bearish momentum and margin concerns warrant careful monitoring. The upgrade to a Hold rating and attractive valuation multiples provide a foundation for measured optimism, but the technical signals suggest that any recovery may be tentative without further fundamental catalysts. Investors should weigh these mixed signals carefully within the context of the gems and jewellery sector’s inherent volatility and broader market conditions.
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