Technical View: A Look at this ‘56% Gainer’ in 8 Days!

  • Stock Market Analysis

There aren’t many jewelry stocks listed on the NSE and out of those only a few names are known to the majority of investors. Stocks such as Titan (NS: TITN ), PC Jeweller Ltd (NS: PCJE ), Kalyan Jewellers (NS: KALN ), etc are known to everyone, but there is a lesser-known stock that is currently making a buzz on the street. 

The company is Radhika Jeweltech Limited which is a small-cap precious metals, jewellery & watches retailer, having a market capitalization of INR 504 crores. The company recently got listed on the NSE, in July last year and is yet to complete its one year of listing. 

Talking about the financials, FY22 was a great year for the company as it recorded a 62.2% jump in revenue to INR 234.73 crores, the highest since FY18. However, due to the much higher EBITDA than FY18, the net income surged to the highest ever at INR 27.07 crores. It has been increasing its net income at a 5-year CAGR of 23.9%.

Image Description: Daily chart of Radhika Jeweltech with volume bars at the bottom

Image Source: Investing.com

In the last couple of weeks, the stock has been catching a lot of attention on the street. On 12 January 2023, it rallied to hit a 20% upper circuit which was the beginning of a relentless rally. Since then, a never-before-seen rally in the stock is continuing as the stock has risen to an all-time high of INR 244 in today’s session, clocking a stellar run of 56% in a mere 8 sessions.   

The volume figures have also started to ramp up, as investors are lapping up the company’s shares. However, investors/traders should not get lured by looking at this massive rally and waiting for a retracement to find a long opportunity might be a good idea. The level of around INR 200 can prove to be a great support in case profit booking takes place. This is the same level where the stock was facing a bit of a hurdle on its way up as it was the previous all-time high. 

As this is a small-cap stock, the liquidity is a bit less, but lesser-known stocks like these should be kept on the watchlist if traders are seeking momentum stocks.

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  • NIRAV JARIWALA @NIRAV JARIWALA
    ALL CLEAR POSITION NO BUY
    Like 0
  • NIRAV JARIWALA @NIRAV JARIWALA
    sell canfihome sell below 556 target   539.5 intraday
    Like 0
  • NIRAV JARIWALA @NIRAV JARIWALA
    buy bank nifty 42500 put buy on 32 target 55 rs
    Like 0
  • Rakesh Sharma @Rakesh Sharma
    Khanna sir please tell me about tata elexi
    Like 0
  • Ravishankar Desai @Ravishankar Desai
    What purpose does your post martem serve Khanna sahab. It makes sense only if you can identify multi baggers.
    Like 2
    • RajDeep Singh @RajDeep Singh
      These kinds of shares are a big trap.
      Like 0
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  • Rakesh Prasad @Rakesh Prasad
    How good, if you have told me before.
    Like 3
    • Anand Ra @Anand Ra
      this is only postmortem... no one will be benefited
      Like 0
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