Khambatta Securities Gives a Buy Call on Radhika Jeweltech Ltd
New Delhi (India), April 28: Radhika Jeweltech Ltd.(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, 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.
Khambatta Securities’ Outlook: Khambatta Securities is bullish on Radhika Jeweltech Ltd and has Recommended Buy Rating with a Target price of Rs.303 in its recent Report. 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, Khambatta Securities, valuation generates a price target of Rs 303, informing an upside potential of 71%.