IIFL Securities sees 30% upside in multibagger stock that has given 1000% return in one year

Radhika Jeweltech shares are one of the multibagger stocks in 2021. In last one year, Radhika Jeweltech share price has appreciated from around ₹17 to ₹196.85 apiece levels, logging more than 1,000 per cent rise in this period. However, IIFL Securities sees more upside in the multibagger stock. The brokerage research report says that the stock has given fresh breakout at ₹180 and in near term it may go up to ₹230 levels.

Pointing towards reason for being bullish on the multibagger stock, IIFL Securities report says, "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."

"Volumes are substantial and we observed increment in volumes coupled with price rise," the brokerage report says.

"The multibagger stock is following the bullish chart structure “Higher Top Higher Bottom” formation, which indicates positive momentum. It is also following bullish candlestick pattern which provide support to the stock," said Anuj Gupta, Vice President — Research at IIFL Securities.

The IIFL Securities expert said that the jewelry company is expected to get margin benefit after spurt in gold price and expected rise in the yellow metal due to various global and domestic triggers. He said that gold price is expected to go up to $1960 per ounce in spot market that means this margin benefit is expected to continue for Radhika Jeweltech Ltd.

On suggestion to positional investors in regard to Radhika Jeweltech share price outlook, IIFL Securities report says, "Buy this stock at any correction till ₹185 to ₹190 levels with the stop loss of ₹167 levels for the potential target of ₹220 levels to ₹230 levels in a near term."

On what does near term exactly mean, Anuj Gupta of IIFL Securities said, "near term means one can expect the given target to hit by one to two months."

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.