Rajesh Exports Limited

Consumer Cyclical — Luxury Goods · BSE

₹59.40+₹0.76 (+1.30%)

DalalBaazaar Score

46 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

The 60-second version of Rajesh Exports Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Rajesh Exports Limited, a gold refiner, engages in the manufacture, wholesale, and retail of gold and various gold jewellery products in India. It also owns retail showrooms under the SHUBH Jewellers brand. The company also exports its products.

IndustryLuxury Goods

SectorConsumer Cyclical

Employees107

Annual revenue₹7.79 L Cr

How does it make money?

Turns over ₹7.79 L Cr a year. Of every ₹100 of sales, about ₹0 reaches shareholders as profit, with ₹0 left at the operating level before interest, tax and depreciation. Each of its 107 employees supports ₹7277.72 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹7277.72 Cr

Who are its competitors?

The closest listed comparisons in its industry are TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED, ASIAN PAINTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 1.9% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE25.9%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +129% while net margin moved -97% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+129%

Margin effect-97%

DalalBaazaar Score

46/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROCE of 1.9% is below 10% — capital is not working hard
✗ ROCE has fallen by 8.6 points — returns are eroding
✗ EBITDA margin of 0.0% is thin — little cushion if costs rise
✗ Net margin of 0.0% is slim
• Revenue has compounded at 31.9% a year, which is the base these returns are earned on

Quality vs. Valuation

Company Quality

38/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

88/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

Optically cheap, but the underlying business scores poorly. Cheap-and-weak is what a value trap looks like from the outside — the low price may be deserved.

Historical Valuation

Current P/E

10.4x

3Y Median

17.6x

40 monthly readings · mean 23.0x · range 5.4x–58.2x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 41% below its 3y median of 17.6x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 85% below the peer median of 69.2x.

vs. its own history

Cheap

17.6x median over 40 months · -41%

vs. sector peers

Cheap

69.2x median of 4 peers · -85%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

2.7x

PEG

0.56

What's Good / What's Bad

🟢 What's Going Well2

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 9.7% to 0.7% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 10.5% to 1.9% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 3 high · 2 watch

🔴High leverageFinancial
Debt/Equity of 5.83x — earnings must service borrowings before shareholders see anything.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴Inventory building faster than salesFinancial
Inventory up 193% against revenue up 129% — stock may not be moving.
🟡Debt is increasingFinancial
Total debt is up 40% over 3 years.
🟡Profit is decliningFinancial
Net profit is down 92% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 41% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 85% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 5.83x. Interest is payable whether or not the business has a good year.
Returns on shareholder capital are falling
ROE has dropped from 9.7% to 0.7%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 24% a year✓ 31.9% CAGR
Latest reported year was 82.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above -2%✓ 0.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.7x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Interest cover stays above 3x✗ 2.0x
How much operating profit can fall before interest stops being comfortably covered.
5Free cash flow remains positive✓ ₹329 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

6 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 2 neutral · 3 weak

Market Cap

₹1,754 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

10.4x

Cheap

Cheap against the generic band

P/B Ratio

0.10x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹5.72

Profitable

Profitable on a per-share basis

ROE

0.7%

Weak

Weak capital efficiency

ROCE

1.9%

Weak

Low return on total capital employed

Debt/Equity

5.83x

High

High leverage

Revenue Growth (YoY)

82.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

18.6%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹329 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

1.2x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

0.0%

Weak

Thin margins leave little room for error

Net Margin

0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.19

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.85

Market-like

Moves roughly in line with the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

62.9 / 73.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

32.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹3.40 L Cr	₹2.81 L Cr	₹4.23 L Cr	₹7.79 L Cr	+31.9%
EBITDA	₹1,711 Cr	₹627 Cr	₹285 Cr	₹380 Cr	-39.4%
EBITDA Margin	0.5%	0.2%	0.1%	0.0%	—
PAT (Net Profit)	₹1,432 Cr	₹337 Cr	₹95 Cr	₹112 Cr	-57.2%
EPS	₹48.51	₹11.41	₹3.21	₹3.81	-57.2%
ROE	9.7%	2.2%	0.6%	0.7%	—
ROCE	10.5%	3.3%	1.5%	1.9%	—
Total Debt	₹723 Cr	₹655 Cr	₹923 Cr	₹1,016 Cr	+12.0%
Free Cash Flow	-₹259 Cr	₹72 Cr	₹7,738 Cr	₹329 Cr	—

🟢 Revenue has grown at 31.9% a year over 3 years.

🔴 EBITDA has shrunk at 39.4% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 0.0% over 3 years.

🔴 PAT (Net Profit) has shrunk at 57.2% a year over 3 years.

🔴 EPS has shrunk at 57.2% a year over 3 years.

🔴 ROE has fallen from 9.7% to 0.7% over 3 years (-9.1 pts).

🔴 ROCE has fallen from 10.5% to 1.9% over 3 years (-8.6 pts).

🔴 Total Debt has grown at 12.0% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹259 Cr to ₹329 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹40,893 Cr

Total Liabilities

₹23,476 Cr

Cash & Equivalents

₹1,731 Cr

Operating Cash Flow

₹372 Cr

Capex

-₹43 Cr

Shareholding (proxy)

Institutional Holding

13.6%

Insider Holding

67.8%

Corporate Actions

Ex-Dividend Date

22 Sept 2022

Peer Comparison

Company	P/E	ROE
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%
ASIAN PAINTS LIMITED	46.9x	22.3%

Recent News

1 positive1 negative4 general

Rajesh Exports FY26 standalone net profit rises to ₹320.92 million

scanx.trade, 11 OctResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Rajesh Exports Upper Circuit Today: Price, Data and Peers

Univest, 14 Oct

Sebi confirms interim curbs on Rajesh Exports, says financial disclosure concerns remain unresolved

The Economic Times, 14 Oct

Sebi confirms Rajesh Exports curbs, flags incomplete information in probe

Business Standard, 14 OctRegulatory

🔴Potentially negativeRegulatory and legal actions carry a financial cost and a governance question. The second usually matters more than the first.

Sebi bars Rajesh Mehta from trading in Rajesh Exports, keeps curbs in place

Livemint, 14 Oct

Rajesh Exports Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 31 Aug

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongValuation

MiddlingFinancial Health · Growth

WeakBusiness Quality · Profitability · Risk

Points for each in the Score ↑

Cheap, but for a reason

The low price is the whole case here, and the business underneath scores poorly. Cheap-and-weak is what a value trap looks like from the outside — it needs a specific reason the numbers are about to improve, not just the observation that they are low. 3 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Interest cover stays above 3x · see Key things to watch ↑