IIFL Securities Sees Further Upside In This Multibagger Jewel Stock That Has Run Up 1123% In A Year

IIFL Securities is bullish on Radhika Jeweltech i.e. a jewellery retailer. The company is into sellinggold jewelry and diamond studded jewellery. Its showroom is located at Rajkot, India. The scrip of Radhika Jeweltech in a year has yielded 1123% returns, moving from a price of Rs. 16.1 as on April 29, 2021 to currently at Rs. 196.85 per share while its YTD return has been over 51%.

Brokerage's view on the stock

As per IIFL Securities, the stock has seen a fresh breakout at Rs. 180 and has the potential to scale up to Rs. 230 in the near term, implying gains of close to 17%.

Rationale for bullishness on Radhika Jeweltech:

The brokerage report on the rationale for bullishness in the stock mentions that "Radhika Jeweltech share price has appreciated around 12 per cent after strong breakout at ₹180 levels. This breakout is a strong breakout and the stock has sustained above this levels even when the market sentiments have remained almost bearish throughout last week."

Technical observations for Radhika Jeweltech

The analyst at the firm notes that the scrip is depicting a bullish chart pattern with the formation of higher top higher bottom that signals positive momentum". "It is also following bullish candlestick pattern which provide support to the stock," said Anuj Gupta, Vice President - Research at IIFL Securities.

Also, volumes for the stock are huge together with stock price increase.

Fundamental view on the stock

There remains a view that the company shall get margin benefit owing to the gold price rise as well as expected rise given a slew of global factors such as the ongoing Ukraine, Russia tensions and inflaiton, And the latest trigger being the fall in the US GDP. For the spot market, there are estimates that gold price could inch higher up to $1960 per ounce. So, the margin benefit will continue to bode well for this jewellery player.

 

What to do with Radhika Jeweltech- Buy says IIFL at between Rs. 185-190

To positional imvestors, the brokerage advices to bet on the stock at any correction between Rs. 185-190 for a target of Rs. 220-230 attainable in one or 2 months. The stop loss suggested is Rs. 167 per share.

Disclaimer:

The above stock is taken from the IIFL Securities report. Bet on the stock only after your due diligence, note markets are highly volatile at this point in time.