BSE:531500

Stock Analysis Report

Executive Summary

Rajesh Exports Limited, a gold refiner, manufactures, wholesales, and retails gold and diamond jewelry, and various gold products in India.

Rewards

Trading at 6.5% below its fair value

Earnings are forecast to grow 13.33% per year

Risk Analysis

No risks detected for 531500 from our risk checks.


Snowflake Analysis

Flawless balance sheet with questionable track record.

Share Price & News

How has Rajesh Exports's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 531500 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-8.7%

531500

-2.2%

IN Luxury

-1.2%

IN Market


1 Year Return

12.8%

531500

13.7%

IN Luxury

6.4%

IN Market

Return vs Industry: 531500 matched the Indian Luxury industry which returned 13.7% over the past year.

Return vs Market: 531500 exceeded the Indian Market which returned 6.4% over the past year.


Shareholder returns

531500IndustryMarket
7 Day-8.7%-2.2%-1.2%
30 Day-10.8%-0.6%-3.6%
90 Day-3.4%7.6%-0.5%
1 Year12.9%12.8%14.4%13.7%8.4%6.4%
3 Year21.2%20.7%49.0%47.2%20.9%14.3%
5 Year293.2%290.0%101.2%94.5%29.8%18.0%

Price Volatility Vs. Market

How volatile is Rajesh Exports's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Rajesh Exports undervalued compared to its fair value and its price relative to the market?

6.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 531500 (₹640.5) is trading below our estimate of fair value (₹685.26)

Significantly Below Fair Value: 531500 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 531500 is poor value based on its PE Ratio (15.8x) compared to the Luxury industry average (10.7x).

PE vs Market: 531500 is poor value based on its PE Ratio (15.8x) compared to the Indian market (13x).


Price to Earnings Growth Ratio

PEG Ratio: 531500 is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: 531500 is overvalued based on its PB Ratio (2x) compared to the IN Luxury industry average (0.5x).


Next Steps

Future Growth

How is Rajesh Exports forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

13.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 531500's forecast earnings growth (13.3% per year) is above the savings rate (6.5%).

Earnings vs Market: 531500's earnings (13.3% per year) are forecast to grow slower than the Indian market (20.4% per year).

High Growth Earnings: 531500's earnings are forecast to grow, but not significantly.

Revenue vs Market: 531500's revenue (8.3% per year) is forecast to grow slower than the Indian market (9% per year).

High Growth Revenue: 531500's revenue (8.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 531500's Return on Equity is forecast to be low in 3 years time (13.6%).


Next Steps

Past Performance

How has Rajesh Exports performed over the past 5 years?

10.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 531500 has high quality earnings.

Growing Profit Margin: 531500's current net profit margins (0.7%) are lower than last year (0.8%).


Past Earnings Growth Analysis

Earnings Trend: 531500's earnings have grown by 10.8% per year over the past 5 years.

Accelerating Growth: 531500's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 531500 had negative earnings growth (-14.5%) over the past year, making it difficult to compare to the Luxury industry average (6.4%).


Return on Equity

High ROE: 531500's Return on Equity (12.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Rajesh Exports's financial position?


Financial Position Analysis

Short Term Liabilities: 531500's short term assets (₹281.4B) exceed its short term liabilities (₹211.1B).

Long Term Liabilities: 531500's short term assets (₹281.4B) exceed its long term liabilities (₹1.0B).


Debt to Equity History and Analysis

Debt Level: 531500's debt to equity ratio (30.5%) is considered satisfactory.

Reducing Debt: 531500's debt to equity ratio has reduced from 104.3% to 30.5% over the past 5 years.

Debt Coverage: 531500's debt is well covered by operating cash flow (120.3%).

Interest Coverage: 531500's interest payments on its debt are well covered by EBIT (103x coverage).


Balance Sheet

Inventory Level: 531500 has a high level of physical assets or inventory.

Debt Coverage by Assets: 531500's debt is covered by short term assets (assets are 9.7x debt).


Next Steps

Dividend

What is Rajesh Exports's current dividend yield, its reliability and sustainability?

0.16%

Current Dividend Yield


Dividend Yield vs Market

company0.2%marketbottom25%0.6%markettop25%2.6%industryaverage0.7%forecastin3Years0.2%

Current dividend yield vs market & industry

Notable Dividend: 531500's dividend (0.16%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: 531500's dividend (0.16%) is low compared to the top 25% of dividend payers in the Indian market (2.63%).


Stability and Growth of Payments

Stable Dividend: 531500 is not paying a notable dividend for the Indian market, therefore no need to check if payments are stable.

Growing Dividend: 531500 is not paying a notable dividend for the Indian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 531500 is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 531500's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

18.5yrs

Average board tenure


CEO

Rajesh Mehta (55yo)

₹120,000

Compensation

Mr. Rajesh Jasvantrai Mehta serves as the Executive Chairman of Rajesh Exports Ltd. and has been its Director since February 1, 1995. He has an experience of over twenty five years in the functioning and m ...


CEO Compensation Analysis

Compensation vs Market: Rajesh's total compensation ($USD1.67K) is below average for companies of similar size in the Indian market ($USD754.76K).

Compensation vs Earnings: Rajesh's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Rajesh Mehta
Executive Chairman0yrs₹120.00k38.09% 73.7b
Prashant Mehta
MD & Executive Director25yrs₹120.00k12.59% 24.3b
Y. Venu Reddy
Non-Executive & Independent Director18.5yrsno datano data
Gopichandrohra Prasad
Non-Executive & Independent Director18.5yrsno data0.0051% 9.8m
T. Joseph
Non Executive & Non Independent Director0.7yrsno datano data
Vijaya Lakshmi
Non-Executive & Independent Director4.9yrsno datano data

18.5yrs

Average Tenure

57yo

Average Age

Experienced Board: 531500's board of directors are seasoned and experienced ( 18.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Rajesh Exports Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Rajesh Exports Limited
  • Ticker: 531500
  • Exchange: BSE
  • Founded: 1989
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: ₹193.336b
  • Shares outstanding: 295.26m
  • Website: https://www.rajeshindia.com

Location

  • Rajesh Exports Limited
  • # 1, Brunton Road
  • Opposite Old Passport Office
  • Bengaluru
  • Karnataka
  • 560001
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
531500BSE (Mumbai Stock Exchange)YesEquity SharesININRFeb 2000
RAJESHEXPONSEI (National Stock Exchange of India)YesEquity SharesININRFeb 2000

Biography

Rajesh Exports Limited, a gold refiner, manufactures, wholesales, and retails gold and diamond jewelry, and various gold products in India. As of April 23, 2019, the company operated through a network of 82 retail jewelry showrooms under the SHUBH Jewellers brand name. It also distributes its products to the jewelry showrooms; and exports its products to approximately 60 countries worldwide. The company was incorporated in 1989 and is based in Bengaluru, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 12:45
End of Day Share Price2020/02/26 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.