Radhika Jeweltech Ltd Stock Falls to 52-Week Low of Rs.64

Stock Price Movement and Market Context

On 28 Jan 2026, Radhika Jeweltech Ltd recorded its lowest price in the past year at Rs.64, underperforming its sector by 0.86% on the day. Despite a slight recovery following two consecutive days of decline, the stock remains below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning indicates sustained downward pressure over multiple timeframes.

In contrast, the broader market showed resilience, with the Sensex rising 0.48% to close at 82,247.75 points. The index is currently 4.76% below its 52-week high of 86,159.02, supported by gains in mega-cap stocks. Notably, the Sensex trades below its 50-day moving average, though the 50DMA remains above the 200DMA, signalling a mixed but cautiously optimistic market environment.

Long-Term Performance and Relative Comparison

Over the last twelve months, Radhika Jeweltech Ltd’s stock has declined by 35.77%, a stark contrast to the Sensex’s positive return of 8.40% over the same period. The stock’s 52-week high was Rs.111.48, highlighting the extent of the recent price erosion. This underperformance extends beyond the past year, with the company lagging behind the BSE500 index across one-year, three-year, and three-month intervals.

Mojo Score and Rating Update

Radhika Jeweltech Ltd currently holds a Mojo Score of 46.0, reflecting a Sell grade as of 12 Jan 2026, a downgrade from its previous Hold rating. This adjustment underscores the stock’s deteriorating momentum and relative weakness within its sector. The company’s market capitalisation grade stands at 4, indicating a smaller market cap relative to larger peers.

Ownership and Institutional Interest

One notable factor contributing to the stock’s subdued performance is the absence of domestic mutual fund holdings, which currently stand at 0%. Given that domestic mutual funds typically conduct thorough on-the-ground research, their lack of exposure may suggest reservations regarding the company’s valuation or business prospects at prevailing price levels.

Financial Metrics and Operational Highlights

Despite the stock’s price challenges, Radhika Jeweltech Ltd exhibits several positive financial indicators. The company maintains a low average debt-to-equity ratio of 0.10 times, signalling conservative leverage. Net sales have grown at a robust annual rate of 31.21%, reflecting healthy top-line expansion over the long term.

Profitability metrics from the September 2025 quarter reveal encouraging trends. The company reported a Profit After Tax (PAT) of Rs.47.75 crores for the nine-month period, representing a growth rate of 35.92%. Similarly, Profit Before Tax excluding other income (PBT less OI) for the quarter stood at Rs.24.51 crores, up 38.55% year-on-year.

Return on Capital Employed (ROCE) is notably strong at 24.3%, accompanied by an attractive enterprise value to capital employed ratio of 2.3. These figures suggest efficient capital utilisation and a valuation discount relative to peer averages. The company’s Price/Earnings to Growth (PEG) ratio of 0.3 further indicates that profits have grown faster than the stock price, which has declined by 35.77% over the past year despite a 38.7% increase in profits.

Sectoral and Peer Comparison

Within the Gems, Jewellery And Watches sector, Radhika Jeweltech Ltd’s valuation metrics place it at a discount compared to historical averages of its peers. However, the stock’s consistent underperformance relative to sector indices and broader market benchmarks highlights ongoing challenges in regaining investor confidence. The sector itself has seen mixed trends, with some companies benefiting from market tailwinds while others face headwinds from changing consumer demand and competitive pressures.

Technical Indicators and Trend Analysis

Technically, the stock’s position below all major moving averages signals a bearish trend. The recent slight gain after two days of decline may indicate short-term consolidation, but the overall trend remains subdued. The day’s marginal positive change of 0.13% was insufficient to offset the broader downward momentum experienced over recent months.

Summary of Key Financial and Market Data

To summarise, Radhika Jeweltech Ltd’s stock has reached a 52-week low of Rs.64, reflecting a 35.77% decline over the past year against a Sensex gain of 8.40%. The company’s financials show strong sales growth and profitability improvements, yet these have not translated into positive stock performance. Institutional interest remains minimal, and the stock’s technical indicators suggest continued caution among market participants.

While the company’s fundamentals such as low leverage, high ROCE, and profit growth are noteworthy, the market’s valuation and rating downgrade to Sell highlight the challenges faced in the current environment. The stock’s discount to peer valuations and low PEG ratio provide context to its price movement, underscoring the complex interplay between financial performance and market sentiment.

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