Value Added Product Mix Shift
Expected: Long-termMEDIUM confidence
What: Margin growth: Not quantified
Rajesh Exports Ltd: Is It a Deep Value Opportunity?
AverageTurnaround
As of , Rajesh Exports Ltd (Diamond, Gems & Jewellery) has a deep value score of 41/100 (rated Average). Earnings are accelerating. 1Y return vs Nifty 500: -39%.
Rajesh Exports Ltd Key Facts
- PE Ratio
- 21.4x
- Market Cap
- ₹3,602 Cr
- Value Score
- 41/100
- Margin of Safety
- -68%
- PAT Growth YoY
- +97%
- Revenue Growth YoY
- +143%
- OPM
- 0.0%
PE: Near TroughRiding Wave
What's Happening
💰Trading 68% above estimated fair value — significant premium
Earnings Acceleration Triggers
1. Value Added Product Mix Shift
Long-termMEDIUM
2. Geographical Expansion
OngoingMEDIUM
Key Risks
1. NSE warned of trading suspension due to failure to submit shareholding patterns
HIGH2. Massive operational dependency on the Gulf region (UAE/Dubai) for 80-85% of reve
HIGH3. Pending litigation with sole banking partner Canara Bank
MEDIUMSector-Specific Signals
Operating Margin0.05%-28.57%
Cost of Raw Materials₹2,34,937.05 Cr143.46%
Inventory Holdings₹50,000 Cr
Retail Showrooms80
Key Numbers
PAT Growth YoY
+97%
Stable
Revenue YoY
+143%
Stable
Operating Margin
0.0%
0 bps YoY
PE Ratio
21.4
PEG Ratio
0.00
Current Price
₹122
3Y PAT CAGR
-50%
Market Cap
3.6K Cr
Valuation
Significantly OvervaluedWhy Are Rajesh Exports Ltd's Earnings Accelerating?
Based on Q3 FY26 (web) earnings • Updated Apr 18, 2026
Geographical Expansion
Expected: OngoingMEDIUM confidence
What: Showroom count: 80 showrooms
What Are the Key Risks for Rajesh Exports Ltd?
Earnings deceleration risks from management commentary
NSE warned of trading suspension due to failure to submit shareholding patterns
HIGHTrigger: NSE warned of trading suspension due to failure to submit shareholding patterns for June and Sept 2025 quarters; SEBI forensic investigation communication received.
Management view: Mistakes described as inadvertent in past instances.
Monitor: regulatory
Massive operational dependency on the Gulf region (UAE/Dubai) for 80-85% of reve
HIGHTrigger: Massive operational dependency on the Gulf region (UAE/Dubai) for 80-85% of revenue; Middle East conflict threatens logistics and insurance costs.
Impact: PAT impact: High risk of volume contraction
Management view: Not Given
Monitor: geopolitical
Pending litigation with sole banking partner Canara Bank
MEDIUMTrigger: Pending litigation with sole banking partner Canara Bank; ongoing NCLT case filed by lender at Bengaluru branch.
Impact: PAT impact: ₹1100 Cr loans in NPA status
Management view: Non-cooperation with rating agencies noted.
Monitor: litigation
What Did Rajesh Exports Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
₹2,35,098.28 Cr
YoY +143.3%QoQ +34.18%
Revenue surged to record highs driven by massive volume expansion in the gold refining and manufacturing segments.
EBITDA
₹113.65 Cr
YoY +70.15%Margin 0.05%
Operating margins remain razor-thin at 0.05%, reflecting the low-margin nature of high-volume gold processing.
PAT
₹71.48 Cr
YoY +101.35%QoQ -31.3%
While PAT doubled year-on-year, it fell 31% sequentially due to rising interest costs and thin operating spreads.
Other Highlights
• Negative tax charge of ₹6.00 Cr in Q3 FY26 boosted net profit figures.
• Interest costs rose to ₹45.51 Cr from ₹38.63 Cr in the previous quarter.
• Nine-month FY26 net sales reached ₹5.42 lakh crores, up 141.2% YoY.
What Sector Metrics Matter for Rajesh Exports Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Operating Margin
0.05%
YoY -28.57%QoQ -50.00%
Why: Operating in a business with razor-thin margins where sequential deterioration occurred despite high volume growth.
Cost of Raw Materials
₹2,34,937.05 Cr
YoY 143.46%
Why: Raw material costs jumped in tandem with the massive increase in total income and processing volumes.
Inventory Holdings
₹50,000 Cr
Why: Massive inventory is required to support the integrated gold supply chain, leading to high working capital needs.
Retail Showrooms
80
Why: Focus on the SHUBH Jewelers brand in Karnataka to capture higher retail margins.
Interest Expense
₹45.51 Cr
YoY 37.9%QoQ 17.8%
Why: Reflecting the working capital intensive nature of the gold refining business and increased borrowing costs.
Effective Tax Rate
-9.16%
Why: A negative tax charge of ₹6.00 Cr boosted the net profit figure despite operational weakness.
What Is Rajesh Exports Ltd's Management Guidance?
Forward-looking targets from management for Multi-year
Revenue Outlook
The company expects to grow in coming years both in terms of revenue and profit through innovative efforts and global positioning.
Margin Outlook
Management is working towards further growth of profit margins by expanding retail footprint and adding value-added products.
Management Tone: CAUTIOUS
How Fast Is Rajesh Exports Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +143% | +20% | Stable |
| PAT (Net Profit) | +97% | -50% | Stable |
| OPM | 0.0% | 0 bps | Expanding |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
Other Deep Value Stocks in Diamond, Gems & Jewellery
Frequently Asked Questions: Rajesh Exports Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What is Rajesh Exports Ltd's deep value score?
Rajesh Exports Ltd has a deep value score of 41/100 (rated Average). This score is calculated from three components
- Earnings Score: 15/40 — measures PAT growth momentum across quarters
- Underperformance Score: 20/35 — how much the stock trails Nifty 500 (deeper underperformance = higher contrarian signal)
- Quality Score: 12/25 — operational quality (margins, revenue growth, valuation)
Is Rajesh Exports Ltd fundamentally improving?
Rajesh Exports Ltd's quarterly profit (PAT) growth trajectory
- Latest Quarter PAT Growth (QoQ): -31%
- Previous Quarter PAT Growth (QoQ): +500%
- 2 Quarters Ago PAT Growth (QoQ): -500%
- PAT Acceleration: +234.3pp (profits are accelerating)
Why is Rajesh Exports Ltd underperforming despite good earnings?
Rajesh Exports Ltd is underperforming the market despite improving earnings — this is the core deep value thesis
- 1-Year Return vs Nifty 500: -39%
- 6-Month Return vs Nifty 500: -30%
- 3-Month Return vs Nifty 500: -28%
- The market often takes time to re-rate stocks with improving fundamentals. This gap between price performance and earnings improvement is what deep value research seeks to identify.
What is the earnings momentum for Rajesh Exports Ltd?
Rajesh Exports Ltd's earnings momentum is Turnaround — recovering from losses.
- PAT QoQ progression: -500% → +500% → -31% (2Q ago → 1Q ago → latest)
- Acceleration: +234.3pp
- PAT YoY Growth: +97%
Is Rajesh Exports Ltd undervalued?
Rajesh Exports Ltd's valuation metrics
- Price-to-Earnings (PE): 21.4x
- Price-to-Book (PB): 0.2x
- PEG Ratio: 0.0x
- Margin of Safety: -24% (appears overvalued)
What are the revenue and margin trends for Rajesh Exports Ltd?
Rajesh Exports Ltd's revenue and margin trends
- Latest Quarter Revenue Growth (QoQ): +34%
- Average Quarterly Revenue Growth: +11%
- Revenue Acceleration: +34.1pp
- Latest OPM Change: -0.1pp (margins contracting)
- Average OPM Change: +0.0pp
- Revenue YoY: +143%
What is Rajesh Exports Ltd's trailing twelve month (TTM) performance?
Rajesh Exports Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹167 Cr
- TTM PAT Growth: +100.0% YoY
- TTM Revenue: ₹7.4 Lakh Cr
- TTM Revenue Growth: +100.0% YoY
- TTM Operating Margin: 0.0%
What sector does Rajesh Exports Ltd belong to?
Rajesh Exports Ltd key facts
- Sector: Diamond, Gems & Jewellery
- Market Cap: ₹3.6K Cr
- Rank in Diamond, Gems & Jewellery: #2 by value score
- Overall rank among all deep value stocks: #36
Is Rajesh Exports Ltd a good deep value opportunity to study?
Rajesh Exports Ltd shows limited deep value signals currently — score is 41/100 (Average). Monitor for improvement.
- Value Score: 41/100 (Average)
- Earnings: Accelerating
- 1Y Underperformance: -39% vs Nifty 500
What is the bull and bear case for Rajesh Exports Ltd?
Research Signals (Bull Case)
- Earnings accelerating — profit growth speeding up
- Revenue growth also accelerating
- Operating margins expanding
Risk Factors (Bear Case)
- Significant underperformance (-39% vs Nifty 1Y)
- Appears overvalued despite underperformance
Which other Diamond, Gems & Jewellery stocks are deep value opportunities?
Other deep value stocks in Diamond, Gems & Jewellery
- Tribhovandas Bhimji Zaveri Ltd — Score 58/100, Average, earnings accelerating
How does the Diamond, Gems & Jewellery sector look for deep value?
Diamond, Gems & Jewellery deep value sector overview
- 2 deep value stocks in this sector
- Average value score: 50/100
- Avg PAT acceleration: +121.8pp
- Top pick: Tribhovandas Bhimji Zaveri Ltd
What is deep value investing?
Deep value investing studies stocks that are underperforming the market despite showing improving fundamentals. The thesis is that the market has not yet recognized the earnings recovery, creating a potential valuation gap. It requires patience — recovery can take several quarters.
How is the deep value score calculated?
The deep value score (0-100) combines three factors:
- Earnings (0-40 pts): PAT growth across last 3 quarters, acceleration, and consecutive growth - Underperformance (0-35 pts): How much the stock trails Nifty 500 over 1Y, 6M, 3M (deeper underperformance = higher score) - Quality (0-25 pts): Revenue growth, margin trends, and valuation metrics (PEG, P/B)
Higher score indicates a stronger contrarian research signal.
What are the growth catalysts for Rajesh Exports Ltd?
Rajesh Exports Ltd has 2 key growth catalysts identified from recent earnings analysis
- Value Added Product Mix Shift
- Geographical Expansion
What are the key risks in Rajesh Exports Ltd?
Rajesh Exports Ltd has 3 key risks worth monitoring
- NSE warned of trading suspension due to failure to submit shareholding patterns
- Massive operational dependency on the Gulf region (UAE/Dubai) for 80-85% of reve
- Pending litigation with sole banking partner Canara Bank
The above FAQs are generated from publicly available earnings data. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.