Radico Khaitan Ltd. Falls 3.09%: Mixed Technical Signals Shape Weekly Performance

16 February 2026: Downgrade to Hold Reflects Mixed Fundamentals and Technicals

On the first trading day of the week, Radico Khaitan’s stock price closed nearly flat at ₹2,792.50, a marginal increase of 0.02% from the previous close. This came amid MarketsMOJO’s downgrade of the stock from Buy to Hold, citing a complex interplay of strong operational fundamentals and weakening technical momentum.

The company’s financial health remains robust, with a low Debt to EBITDA ratio of 1.04 times and a return on capital employed (ROCE) of 19.28%. Profit after tax surged 40.1% to ₹162.10 crores in the recent quarter, supported by six consecutive quarters of positive results. Institutional investors hold a significant 43.85% stake, underscoring confidence in the company’s long-term prospects.

However, valuation metrics such as an EV/CE ratio of 10.7 and a PEG ratio of 1 suggest the stock is expensive relative to peers, limiting upside potential. Technical indicators had shifted from mildly bullish to mildly bearish, with bearish MACD signals on weekly and monthly charts and neutral RSI readings, signalling caution among traders.

17 February 2026: Technical Momentum Turns Mildly Bearish Amid Mixed Signals

Radico Khaitan’s share price rose 0.76% to ₹2,813.65, outperforming the Sensex’s 0.32% gain. Despite this, technical momentum deteriorated further as the stock’s trend shifted from mildly bullish to mildly bearish. The MACD indicator showed bearish signals on the weekly chart and mildly bearish on the monthly, indicating weakening upward momentum.

RSI remained neutral, reflecting indecision, while Bollinger Bands suggested bearishness on the weekly scale but mild bullishness monthly. Daily moving averages maintained a mildly bullish stance, hinting at short-term support. Other indicators such as the Know Sure Thing (KST) and Dow Theory echoed the bearish weekly trend, while on-balance volume (OBV) remained neutral, indicating no strong accumulation or distribution.

This technical shift coincided with the downgrade to Hold, reinforcing a more cautious market outlook despite the stock’s resilience above recent lows.

18 February 2026: Shift to Sideways Trend Suggests Consolidation Phase

The stock closed at ₹2,788.20, down 0.90% from the previous day, while the Sensex gained 0.43%. Technical momentum shifted from mildly bearish to a sideways trend, signalling a pause in the recent downward pressure. The MACD remained bearish weekly but mildly bearish monthly, indicating ongoing uncertainty in momentum.

RSI readings stayed neutral, reinforcing the sideways narrative. Bollinger Bands showed mild bearishness weekly but mild bullishness monthly, suggesting a balance between short-term caution and longer-term optimism. Daily moving averages turned mildly bullish, hinting at emerging support.

Volume-based indicators such as OBV were mildly bullish weekly but neutral monthly, indicating tentative accumulation. Despite short-term underperformance year-to-date (-14.64%), Radico Khaitan’s long-term returns remain strong, with 44.12% over one year and over 400% over five years, far exceeding Sensex benchmarks.

19 February 2026: Price Declines Sharply Amid Market Weakness

On 19 February, the stock fell sharply by 2.38% to ₹2,721.90, underperforming the Sensex’s 1.45% decline. This drop reflected lingering bearish pressures despite the recent sideways consolidation. Technical indicators remained mixed, with bearish MACD and KST signals contrasting with mildly bullish daily moving averages and OBV.

The stock’s price volatility increased, with intraday swings between ₹2,712.00 and ₹2,808.40. The broader market weakness and sector-specific factors likely contributed to the decline, reinforcing the cautious stance adopted earlier in the week.

20 February 2026: Technical Momentum Shifts to Mildly Bullish Despite Price Drop

The week closed with Radico Khaitan’s stock at ₹2,705.85, down 0.59% on the day and 3.09% for the week. Despite the price decline, technical momentum shifted from sideways to mildly bullish, signalling tentative improvement in short-term price action. Daily moving averages turned mildly bullish, and the monthly RSI showed bullish tendencies, suggesting underlying support.

However, weekly MACD and KST remained bearish, and Bollinger Bands on the weekly chart continued to indicate downside risk. On-balance volume was mildly bullish weekly but neutral monthly, reflecting cautious accumulation. The mixed signals highlight a transitional phase where the stock may be preparing for a recovery or further consolidation.

Radico Khaitan’s long-term performance remains impressive, with a 34.78% gain over one year and a 390.65% rise over five years, substantially outperforming the Sensex. The current Hold rating and technical complexity suggest investors should monitor momentum indicators closely before making directional calls.

Key Takeaways

Positive Signals: Radico Khaitan’s strong operational metrics, including a 40.1% PAT increase and a robust ROCE of 19.28%, underpin its long-term growth potential. Institutional holding of 43.85% provides stability. The recent shift to mildly bullish daily moving averages and monthly RSI suggests emerging support and possible recovery.

Cautionary Signals: The stock underperformed the Sensex by 3.48% this week, reflecting short-term weakness. Technical indicators such as weekly MACD and KST remain bearish, and valuation metrics indicate the stock is expensive relative to peers. The downgrade to Hold by MarketsMOJO highlights the need for prudence amid mixed signals.

Market Context: The broader market showed resilience with the Sensex gaining 0.39% over the week, contrasting with Radico Khaitan’s 3.09% decline. This divergence emphasises sector-specific or stock-specific challenges impacting price momentum.

Conclusion

Radico Khaitan Ltd.’s week was characterised by a complex interplay of strong fundamentals and shifting technical momentum. While the company’s financial performance remains solid and its long-term returns impressive, the recent downgrade to Hold and mixed technical signals have weighed on the stock price. The week’s 3.09% decline against a modest Sensex gain underscores this cautious sentiment.

Technical indicators suggest the stock is navigating a transitional phase, with short-term bullish signs tempered by medium-term bearish pressures. Investors should monitor key momentum and volume indicators closely to assess whether Radico Khaitan can stabilise and resume its upward trajectory or face further consolidation.

Given the nuanced outlook, a measured approach is warranted, balancing the company’s operational strengths against valuation concerns and technical uncertainties.

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