Shares of this fundamentally strong small-cap stock present in the ‘Jewellery’ sector have seen a downfall of around percent from their 52-week high levels.
With a market capitalization of Rs 15,272 crores, the stocks of Rajesh Exports Limited started their trading session today at Rs 521.40 and currently trade at Rs 517.30, slipping about 0.60 percent as compared to the previous close of Rs 520.20 apiece.
The scrip hit its 52-week high mark at Rs 1028.4 on the 6th of February 2023. Comparing the same with the current price prevailing in the market, it depicts a discount of nearly 50 percent to the 52-week high levels.
The company, apart from the dip during FY21-22, has been able to increase its revenue figures with the most recent movement being from Rs 2,43,127 crores during FY21-22 to Rs 3,39,689 crores in FY22-23. Moreover, the after-tax profits were on the rise shifting from Rs 1,009 crores to Rs 1,432 crores during the same time horizon.
Apart from the above, the profitability metrics have seen some improvements with the return on equity (RoE) moving from 8.10 percent during FY21-22 to 9.72 percent in FY22-23, and, the return on capital employed (RoCE) shifting from 9.00 percent to 9.94 percent.
Looking at the price-to-earnings (P/E) number of 10.70, the company exhibits characteristics of an undervalued stock as the industry P/E stands at 26.90.
The company has proved to be successful in keeping the debt-to-equity ratio well under the limits and reported the same at 0.05 times during FY22-23. Additionally, the short-term liquidity position of the company has increased with improved current and quick ratios.
Rajesh Exports Limited is engaged in the business of manufacturing gold jewellery, medallions, and many other products. The company, with its refineries in India as well as Switzerland, exports its products to over 60 countries and, the same, form nearly 90 percent of its revenue.
Written by Amit Madnani
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