InvestorQ : what are your long term views on rajesh export ?
appurva bafana made post

what are your long term views on rajesh export ?

Answer
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1 year ago


Rajesh Exports is a 30-year-old company operating in the complete gold value chain ranging from gold refining to gold retailing. Interestingly, Rajesh Exports is the largest processor of gold and actually processes more than 35% of all gold that is produced in the world each year. Rajesh Exports is not only the largest exporter of gold from India but it is also the lowest cost producer of gold jewelry in India.

Rajesh Exports has been a solid performer in the stock markets and at the current price of Rs.722, it commands an attractive P/E ratio of more than 45 times earnings. Unlike other gold and jewelry stocks, Rajesh Exports is not too vulnerable to gold prices; demand cycles and operates in a largely de-risked model. The company has consistently maintained its ROE and its ROCE at above 17%. Apart from a consistent dividend-paying track record, Rajesh Exports is also a Zero Debt company. 

The year 2018 had seen some pressure on the top line but Rajesh Exports managed to maintain net profits flat and actually grew EBITDA through better cost management. With strong brands, profitable growth and zero debt, this could be a good way to participate in the big gold consumption story.