Stock Price Movement and Market Context
On the trading day, Radhika Jeweltech Ltd’s share price touched Rs.64, its lowest level in the past year, after two consecutive days of decline. Despite a slight recovery on the day with a 0.13% gain, the stock underperformed its sector by 0.86%. The company’s shares are trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — indicating sustained downward momentum.
In contrast, the Sensex opened flat but gained steadily, climbing 355.39 points. The benchmark index remains 4.76% shy of its 52-week high of 86,159.02, supported by strong performances from mega-cap stocks. While the Sensex trades below its 50-day moving average, the 50DMA remains above the 200DMA, signalling a cautiously optimistic market environment.
Long-Term and Recent Performance Analysis
Radhika Jeweltech Ltd’s one-year return stands at -35.77%, significantly lagging behind the Sensex’s 8.40% gain over the same period. The stock’s 52-week high was Rs.111.48, highlighting the extent of the recent decline. Over the last three years, the company has also underperformed the BSE500 index across multiple time frames, including one year and three months, reflecting persistent challenges in maintaining market confidence.
Financial Metrics and Valuation Insights
Despite the stock’s price weakness, several financial indicators present a more nuanced picture. The company maintains a low average debt-to-equity ratio of 0.10 times, suggesting a conservative capital structure. Net sales have exhibited robust growth, increasing at an annual rate of 31.21%, signalling healthy top-line expansion.
Profitability metrics from the nine months ended September 2025 reveal a 35.92% increase in PAT to Rs.47.75 crores and a 38.55% rise in PBT excluding other income to Rs.24.51 crores. Return on capital employed (ROCE) stands at a strong 24.3%, accompanied by an enterprise value to capital employed ratio of 2.3, indicating an attractive valuation relative to capital utilisation.
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Market Position and Institutional Holding
Radhika Jeweltech Ltd operates within the Gems, Jewellery and Watches sector, a segment that has witnessed varied performance across peers. The company’s Mojo Score currently stands at 46.0, with a Mojo Grade of Sell, downgraded from Hold on 12 Jan 2026. This reflects a reassessment of the stock’s outlook based on recent trends and financial data.
Notably, domestic mutual funds hold no stake in the company, a factor that may indicate limited institutional conviction. Given that domestic funds typically conduct thorough research and maintain positions in companies with favourable prospects, their absence from Radhika Jeweltech Ltd’s shareholding pattern is a noteworthy consideration.
Valuation Relative to Peers
The stock is trading at a discount compared to the average historical valuations of its peers. Despite the negative price performance, the company’s profits have increased by 38.7% over the past year, resulting in a price-to-earnings-to-growth (PEG) ratio of 0.3. This low PEG ratio suggests that the market is pricing in subdued growth expectations relative to the company’s earnings expansion.
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Summary of Key Financial and Market Indicators
To summarise, Radhika Jeweltech Ltd’s stock has experienced a marked decline to Rs.64, its 52-week low, amid a market environment where the broader indices have shown resilience. The company’s financials reveal strong sales growth and improving profitability, yet the stock’s valuation and institutional interest remain subdued. The Mojo Grade downgrade to Sell and the absence of domestic mutual fund holdings underscore the cautious stance adopted by market participants.
While the stock has shown a minor gain following two days of losses, it continues to trade below all major moving averages, reflecting ongoing pressure. The contrast between the company’s operational metrics and market valuation highlights the complexities investors face when assessing stocks in the Gems, Jewellery and Watches sector.
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