Bonanza Wealth Management Research gives a Buy Call on Radhika Jeweltech Ltd

For the financial year 2021-22, Radhika Jeweltech clocked a net profit of Rs 27.07 crore, with total revenue of Rs 232.78 crore. The company has a market cap of less than Rs 400 crore but is almost debt-free.

Earlier, following its results, Mumbai-based brokerage Khambatta Securities had also initiated coverage on the stock, with a buy rating and a target price of Rs 295, hinting at a more than 65 per cent rise in the counter.

“It has delivered an overall strong performance in FY22, marked by robust growth in sales and profits. With a history of over three decades in Rajkot, the Radhika brand has gained considerable goodwill among customers.”

The most important driver for its growth in the near-to-medium term is the planned new showroom that is expected to start operating by Q2FY23, pushing the revenues to a significantly higher trajectory, it added.

The company operates a 2,500 sq feet showroom in the heart of Rajkot’s jewellery market. Radhika Jeweltech generates 85 per cent of its revenue from the pure-gold jewellery business, while the remainder comes from diamond and platinum jewellery items.

If you have any objection to this press release content, kindly contact pr.error.rectification@gmail.com to notify us. We will respond and rectify the situation in the next 24 hours.