Khambatta Securities has given Buy recommendation for Radhika Jeweltech with a target price of Rs. 303 in its research report issued on Apr 21, 2022

Khambatta Securities’ research report on Radhika Jeweltech

Radhika Jeweltech Limited (RJL) is a retail jeweller dealing in gold and diamond-studded jewellery, operating through a retail store in the western Indian city of Rajkot in Gujarat. With 35 years’ rich experience in gold and jewellery entrepreneurship, the promoters of RJL have in-depth knowledge of the industry as well as the local jewellery market of Rajkot. With operational presence for over 3 decades, the name Radhika has considerable goodwill with customers. RJL’s 2,500 sqft showroom in the heart of Rajkot’s jewellery market attracts footfalls of over 200 customers a day on average. Rajkot is the primary socioeconomic urban centre of the Saurashtra region and a major one in the state of Gujarat. Going forward, rapid urbanisation, an expanding working-age population, growing economic opportunities, and rising disposable income along with the tradition of buying/investing in gold will drive demand for jewellery.


The RJL stock currently trades at an attractive forward P/E of 5.8x FY24E EPS. Assigning a target multiple of 10.0x FY24E EPS, our valuation generates a price target of Rs 303, informing an upside potential of 71%, as we initiate coverage on RJL with a BUY rating.

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