As of Mar 28, 2026, Rajesh Exports Ltd (Diamond, Gems & Jewellery) has a deep value score of 51/100 (rated Average). Earnings are accelerating. 1Y return vs Nifty 500: -55%.
Deep value thesis based on recent earnings • Updated Mar 7, 2026
Rajesh Exports is experiencing a dramatic earnings inflection with PAT surging 101% YoY to Rs 71.74 crore in Q3 FY26, driven by massive revenue growth of 143% YoY to Rs 2.35 lakh crore, signaling a potential margin recovery phase after years of depressed performance in the diamond industry.
Verdict
EARLY_INNINGS
Re-rating catalysts over the next 2-4 quarters • Updated Mar 7, 2026
Potential for third consecutive quarter of >100% PAT growth confirming sustained turnaround.
Impact: +₹250000 Cr revenue
“Two consecutive quarters of >100% PAT growth (Q2: 128%, Q3: 101%)”
First time in years showing sustained profitability with estimated PAT of ~Rs 250 crore.
Impact: +₹741042 Cr revenue
“Nine-month net income up 78.7% YoY to Rs 1,659.97 crore”
Global diamond demand rebounding after post-pandemic inventory correction.
Impact: +₹100000 Cr revenue
“Revenue growth accelerating from 143% YoY in Q3”
Risks that could prevent re-rating or deepen the value trap
If diamond prices decline or volatility increases
Impact: -50 bps margin impact
Management view: Company has been working on vertical integration to improve margins but progress has been slow.
Monitor: OPM trend over next 2 quarters
Forward-looking targets from management for FY26
Implied PAT Growth
75%
Key Milestones
• Q4 results showing sustained profitability
• Full-year results confirming turnaround
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 AI-generated from publicly available financial data. This is educational research only — not investment advice. Last updated Mar 7, 2026.
Based on publicly available financial data. This is educational research, not investment advice.
Rajesh Exports Ltd has a deep value score of 51/100 (rated Average). This score is calculated from three components
Rajesh Exports Ltd's quarterly profit (PAT) growth trajectory
Rajesh Exports Ltd is underperforming the market despite improving earnings — this is the core deep value thesis
Rajesh Exports Ltd's earnings momentum is Turnaround — recovering from losses.
Rajesh Exports Ltd's valuation metrics
Rajesh Exports Ltd's revenue and margin trends
Rajesh Exports Ltd's trailing twelve month (TTM) performance
Rajesh Exports Ltd key facts
Rajesh Exports Ltd shows limited deep value signals currently — score is 51/100 (Average). Monitor for improvement.
Other deep value stocks in Diamond, Gems & Jewellery
Diamond, Gems & Jewellery deep value sector overview
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.
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.
Rajesh Exports Ltd has 3 key growth catalysts identified from recent earnings analysis
Rajesh Exports Ltd has 1 key risk worth monitoring
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.
