Mehabe score: 3 G Factor: 3 Piotski Score: 7 The stock has a rating OBSERVE & HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 3 and Piotski score of 7.
Description
Rajesh Exports Ltd is headquartered in Bangalore and is involved in Extensive global manufacturing of gold and gold products and marketing network with distribution through Exports, Wholesale and directly to consumers by its own retail brand. It refines over 35% of world’s gold. [1]Site:RAJESHEXPOMain Symbol:RAJESHEXPO
Stock trades at 669.0, above its 50dma 590.52. It also trades above its 200dma 552.11. The stock remains bullish on techicals
The 52 week high is at 657.75 and the 52week low is at 440.80
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
– is expected to give good quarter
Weakness
– The company has delivered a poor sales growth of 9.35% over past five years.
-Tax rate seems low
– has a low return on equity of 11.71% for last 3 years.
-Dividend payout has been low at 2.74% of profits over last 3 years
Competition
– The industry trades at a mean P/E of 28.6x. Titan Company trades at the industry’s max P/E of 128.97x. RAJESHEXPO trades at a P/E of 20.3x
– Industry’s mean G-Factor is 3.2 while the mean Piotski score is 7.0. RAJESHEXPO has a G-Factor of 3 and Piotski scoreof 7.
– Average 1 month return for industry is -4.5%. The max 1- month return was given by Rajesh Exports: a return of 3.44 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 50897.0 cr compared to Rs 46054.0 cr for period ended Jun 2020, a rise of 10.5%
Operating Profits reported at Rs 302.0 cr for period ended Jun 2021 vis-vis 186.0 for period ended Jun 2020 .
Operating Margins expanded 18.9 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 9.43 compared to Rs 9.92 for previous quarter ended Mar 2021 and Rs 5.15 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 263156.0 cr for period ended TTM vis-vis sales of Rs 258313.0 cr for the period ended Mar 2021, a growth of 1.8%. The 3 year sales cagr stood at 14.4%.
Net Profit reported at Rs 972.0 cr for period ended TTM vis-vis sales of Rs 846.0 cr for the period ended Mar 2021, rising 13.0%.
Company reported a poor Net Profit CAGR of -9.1% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was 8.0% compared to 12.0% over the last 3 Years. – The stock has given a return of 45% on a 1 Year basis vis-vis a return of 6% over the last 3 Years. – The compounded sales growth on a TTM bassis is 31% vis-vis a compounded sales growth of 11% over the last 3 Years. – The compounded profit growth on a TTM basis is -8% vis-vis a compounded profit growth of -13% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Sep 2021 fii holding stood at 16.8% vis-vis 16.99% for Jun 2021 – Public shareholding has remained largely constant. The Sep 2021 public holding stood at 18.68% vis-vis 19.32% for Jun 2021
Conclusion
– has reduced debt.
– is almost debt free.
– is expected to give good quarter – The company has delivered a poor sales growth of 9.35% over past five years.
-Tax rate seems low
– has a low return on equity of 11.71% for last 3 years.
-Dividend payout has been low at 2.74% of profits over last 3 years
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 590.52 and is trading at 669.0 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
