Rajesh Exports (RAJESHEXPO)
Asset PlayFairStock Score: 36/100 — MIXED
Score breakdown: P/E: 1/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹81.62 |
| Market Cap | ₹2,409.91 Cr |
| P/E Ratio | 21.42 |
| ROCE | 1.47% |
| ROE | 0.68% |
| Dividend Yield | 0% |
| Profit Growth | 101.35% |
| Debt/Equity | 0.06 |
| Sales Growth | 19% |
| Promoter Holding | 54.55% |
| 52-Week Range | ₹49 — ₹237.88 |
| Sector | Consumer Durables |
| Book Value | ₹584.27 |
AI Analysis
AI-generated, general educational analysis — not personal investment advice.
I start with the first question Graham asks: what does this business earn, and am I paying too much for those earnings? Rajesh Exports sells enormous quantities of gold and jewellery—quarterly sales were ₹2.35 lakh crore—but it kept only ₹71 crore as profit. That is a net margin of barely 0.03%. In Buffett's language, a business that grows on turnover but not on per-rupee profit has no moat. It is a giant, low-margin commodity intermediary exposed to gold prices and the jewellery cycle. The trailing P/E of 25.28 confirms that the market is paying ₹25 for every ₹1 of profit, and since there is no dividend, I earn nothing while I wait. The balance sheet is conservative: debt/equity is only 0.05 and promoter holding is 54.55%. The F-score of 7 out of 9 suggests the financial position strengthened recently. Book value is ₹173.91, while the share price is ₹128.69, so the stock trades below book at 0.74 times. That gives some asset-backing. But here is the trap: book value only protects you if the assets can earn a fair return. ROE is just 1.10% and ROCE 1.47%, so this pile of assets is not productive. Sales growth of 143% and profit growth of 101% look exciting, and the PEG of 0.21 appears cheap. I would ignore that. A commodity business can show huge revenue jumps when gold rises, and the profit growth is off a very small base. The 52-week range of ₹73.20 to ₹237.88 tells me how volatile this can be. This is a cyclical, low-return business trading below book. It is not a franchise I would buy without a wider margin of safety, a management plan to improve returns, or evidence that margins are structurally better.
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Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer