Operating Leverage Inflection
Expected: Q3 FY26HIGH confidence
What: PAT Growth: 66.48% QoQ
Impact: 34.8% YoY PAT increase
Radhika Jeweltech Ltd: Is It a Deep Value Opportunity?
AverageSteady Growth
As of , Radhika Jeweltech Ltd (Diamond, Gems & Jewellery) has a deep value score of 58/100 (rated Average). Earnings are accelerating. 1Y return vs Nifty 500: -37%.
Radhika Jeweltech Ltd Key Facts
- PE Ratio
- 8.5x
- Market Cap
- ₹668 Cr
- Value Score
- 58/100
- Margin of Safety
- 131%
- PAT Growth YoY
- +35%
- Revenue Growth YoY
- +4%
- OPM
- 20.0%
PE: Mid ContractionStrong Opportunity
What's Happening
💎PE falling while earnings hold — value emerging
💪Debt reduced 16% YoY — balance sheet strengthening
👔Promoter stake down 6.0% this quarter
💰Trading 131% below estimated fair value — significant discount
Earnings Acceleration Triggers
1. Operating Leverage Inflection
Q3 FY26HIGH
2. Interest Cost Reduction Deleveraging
Q3 FY26LOW
Key Risks
1. Volatility in gold prices impacting margins and investor sentiment
MEDIUM2. Ongoing income tax appeals regarding assessment year 2017-18
LOWSector-Specific Signals
Net Profit Margin14.35%29.9%
Debt to Equity Ratio0.10
Return on Capital Employed24.3%
Interest to Operating Revenue1%
Key Numbers
PAT Growth YoY
+35%
Stable
Revenue YoY
+4%
Stable
Operating Margin
20.0%
+500 bps YoY
PE Ratio
8.5
PEG Ratio
0.30
Current Price
₹57
3Y PAT CAGR
+31%
Market Cap
668 Cr
Valuation
Significantly UndervaluedWhy Are Radhika Jeweltech Ltd's Earnings Accelerating?
Based on Q3 FY26 (web) earnings • Updated Apr 18, 2026
Interest Cost Reduction Deleveraging
Expected: Q3 FY26LOW confidence
What: Interest Cost: ₹0.56 Cr
Impact: 25% QoQ reduction
What Are the Key Risks for Radhika Jeweltech Ltd?
Earnings deceleration risks from management commentary
Volatility in gold prices impacting margins and investor sentiment
MEDIUMTrigger: Volatility in gold prices impacting margins and investor sentiment.
Management view: Not Given
Monitor: commodity
Ongoing income tax appeals regarding assessment year 2017-18
LOWTrigger: Ongoing income tax appeals regarding assessment year 2017-18.
Management view: Contesting additions made under section 68 of the Income Tax Act.
Monitor: litigation
What Did Radhika Jeweltech Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
₹213.59 Cr
YoY +3.65%QoQ +60.53%
Revenue hit an all-time high driven by festive and wedding season demand, though YoY growth was modest.
EBITDA
₹41.78 Cr
Margin 19.56%
Operating profit reached a record high alongside sales, maintaining a margin of 19.56%.
PAT
₹30.64 Cr
YoY +34.8%QoQ +66.48%
Net profit growth outpaced revenue growth due to lower interest costs and a normalized tax rate.
Other Highlights
• Interest costs declined to ₹0.56 crores from ₹0.75 crores quarter-on-quarter.
• Tax rate normalized to 25.25% in Q3 FY26 from 26.02% in the previous quarter.
• 9M FY26 cumulative net profit reached ₹67.26 crores compared to ₹46.40 crores in 9M FY25.
What Sector Metrics Matter for Radhika Jeweltech Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Net Profit Margin
14.35%
YoY 29.9%QoQ 3.84%
Why: Margin volatility highlights the seasonal nature of the jewellery business and the impact of gold price fluctuations.
Debt to Equity Ratio
0.10
Why: Not explained in source
Return on Capital Employed
24.3%
Why: Reflects efficient utilisation of capital and operational effectiveness.
Interest to Operating Revenue
1%
Why: Not explained in source
How Fast Is Radhika Jeweltech Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +4% | +36% | Stable |
| PAT (Net Profit) | +35% | +31% | Stable |
| OPM | 20.0% | +500 bps | Volatile |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
Other Deep Value Stocks in Diamond, Gems & Jewellery
Frequently Asked Questions: Radhika Jeweltech Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What is Radhika Jeweltech Ltd's deep value score?
Radhika Jeweltech Ltd has a deep value score of 58/100 (rated Average). This score is calculated from three components
- Earnings Score: 27/40 — measures PAT growth momentum across quarters
- Underperformance Score: 20/35 — how much the stock trails Nifty 500 (deeper underperformance = higher contrarian signal)
- Quality Score: 12/25 — operational quality (margins, revenue growth, valuation)
Is Radhika Jeweltech Ltd fundamentally improving?
Radhika Jeweltech Ltd's quarterly profit (PAT) growth trajectory
- Latest Quarter PAT Growth (QoQ): +66%
- Previous Quarter PAT Growth (QoQ): +1%
- 2 Quarters Ago PAT Growth (QoQ): +64%
- PAT Acceleration: +1.4pp (profits are accelerating)
- 3 consecutive quarters of positive PAT growth
Why is Radhika Jeweltech Ltd underperforming despite good earnings?
Radhika Jeweltech Ltd is underperforming the market despite improving earnings — this is the core deep value thesis
- 1-Year Return vs Nifty 500: -37%
- 6-Month Return vs Nifty 500: -27%
- 3-Month Return vs Nifty 500: -17%
- Yet average quarterly PAT growth is +44% — earnings are improving
- The market often takes time to re-rate stocks with improving fundamentals. This gap between price performance and earnings improvement is what deep value research seeks to identify.
What is the earnings momentum for Radhika Jeweltech Ltd?
Radhika Jeweltech Ltd's earnings momentum is Steady — consistent growth.
- PAT QoQ progression: +64% → +1% → +66% (2Q ago → 1Q ago → latest)
- Acceleration: +1.4pp
- PAT YoY Growth: +35%
Is Radhika Jeweltech Ltd undervalued?
Radhika Jeweltech Ltd's valuation metrics
- Price-to-Earnings (PE): 8.5x
- Price-to-Book (PB): 1.9x
- PEG Ratio: 0.3x
- Margin of Safety: +189% (appears undervalued)
What are the revenue and margin trends for Radhika Jeweltech Ltd?
Radhika Jeweltech Ltd's revenue and margin trends
- Latest Quarter Revenue Growth (QoQ): +61%
- Average Quarterly Revenue Growth: +19%
- Revenue Acceleration: +48.6pp
- Latest OPM Change: +0.2pp (margins expanding)
- Average OPM Change: +2.4pp
- Revenue YoY: +4%
What is Radhika Jeweltech Ltd's trailing twelve month (TTM) performance?
Radhika Jeweltech Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹78 Cr
- TTM PAT Growth: +34.5% YoY
- TTM Revenue: ₹603 Cr
- TTM Revenue Growth: +3.1% YoY
- TTM Operating Margin: 18.7%
What sector does Radhika Jeweltech Ltd belong to?
Radhika Jeweltech Ltd key facts
- Sector: Diamond, Gems & Jewellery
- Market Cap: ₹668 Cr
- Rank in Diamond, Gems & Jewellery: #3 by value score
- Overall rank among all deep value stocks: #39
Is Radhika Jeweltech Ltd a good deep value opportunity to study?
Radhika Jeweltech Ltd shows limited deep value signals currently — score is 58/100 (Average). Monitor for improvement.
- Value Score: 58/100 (Average)
- Earnings: Accelerating
- 1Y Underperformance: -37% vs Nifty 500
What is the bull and bear case for Radhika Jeweltech Ltd?
Research Signals (Bull Case)
- Earnings accelerating — profit growth speeding up
- 3 consecutive quarters of positive PAT growth
- Appears undervalued based on fair value analysis
- Revenue growth also accelerating
- Operating margins expanding
Risk Factors (Bear Case)
- Significant underperformance (-37% vs Nifty 1Y)
Which other Diamond, Gems & Jewellery stocks are deep value opportunities?
Other deep value stocks in Diamond, Gems & Jewellery
- Tribhovandas Bhimji Zaveri Ltd — Score 61/100, Strong, earnings accelerating
- Manoj Vaibhav Gems N Jewellers Ltd — Score 57/100, Average, earnings accelerating
- Kalyan Jewellers India Ltd — Score 56/100, Average
- DP Abhushan Ltd — Score 53/100, Average
- Rajesh Exports Ltd — Score 45/100, Average, earnings accelerating
- Motisons Jewellers Ltd — Score 42/100, Average, earnings accelerating
How does the Diamond, Gems & Jewellery sector look for deep value?
Diamond, Gems & Jewellery deep value sector overview
- 7 deep value stocks in this sector
- Average value score: 53/100
- Avg PAT acceleration: +40.6pp
- Top pick: Tribhovandas Bhimji Zaveri Ltd
What is deep value investing?
Deep value investing studies stocks that are underperforming the market despite showing improving fundamentals. The thesis is that the market has not yet recognized the earnings recovery, creating a potential valuation gap. It requires patience — recovery can take several quarters.
How is the deep value score calculated?
The deep value score (0-100) combines three factors:
- Earnings (0-40 pts): PAT growth across last 3 quarters, acceleration, and consecutive growth - Underperformance (0-35 pts): How much the stock trails Nifty 500 over 1Y, 6M, 3M (deeper underperformance = higher score) - Quality (0-25 pts): Revenue growth, margin trends, and valuation metrics (PEG, P/B)
Higher score indicates a stronger contrarian research signal.
What are the growth catalysts for Radhika Jeweltech Ltd?
Radhika Jeweltech Ltd has 2 key growth catalysts identified from recent earnings analysis
- Operating Leverage Inflection
- Interest Cost Reduction Deleveraging
What are the key risks in Radhika Jeweltech Ltd?
Radhika Jeweltech Ltd has 2 key risks worth monitoring
- Volatility in gold prices impacting margins and investor sentiment
- Ongoing income tax appeals regarding assessment year 2017-18
The above FAQs are generated from publicly available earnings data. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.