This Stock at 2016 Levels - Risk or Reward?
Discover a unique entity with a global presence across the entire gold value chain, handling an astonishing 35 per cent of the world's gold production.
Delve into a fascinating journey through the world of a company that has left an indelible mark in the realm of gold and gold products. Our story begins with an entity that has remained a pioneer in the industry for over three decades, evolving and thriving with each passing year.
The Gold Odyssey
Business Overview
Discover a unique entity with a global presence across the entire gold value chain, handling an astonishing 35 per cent of the world's gold production. Unveil the secret behind its success, from refining to retailing, and explore its refined craftsmanship. And, as you might have already guessed, the company at the heart of this remarkable journey is none other than Rajesh Exports.
Stock Price
Rajesh Exports, CMP: 438.8
The stock revisited these price levels in 2016 and 2020. It's worth noting that 2020, marked by the global pandemic, saw unprecedented market volatility, making it an exceptional year for analysis. Fast forward to 2023, and the stock finds itself resting firmly on a strong support level.
- Historically, the stock has displayed consolidation periods lasting roughly 80 to 130 days before experiencing significant price surges.
- On average, it took approximately 480 days to reach a price point of Rs 870.
Volume Analysis
At the beginning of October, the stock witnessed a remarkable surge in delivery volume, soaring to a staggering 400 per cent above the stock's average delivery volume. This indicates significant accumulation by a sizeable entity or entities.
Sales and Profit Growth from 2016
(In Rs Crore)
|
|
Mar-16
|
Mar-23
|
|
Sales
|
1,65,179
|
3,39,690
|
|
Sales Growth
|
|
105.6%
|
|
|
|
|
|
Net Profit
|
1,069
|
1,432
|
|
EPS in Rs
|
36.21
|
48.51
|
|
EPS Growth
|
|
34.0%
|
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Key Insights
PLI Scheme
The company signed a Programme Agreement with the Ministry of Heavy Industries, Government of India, focusing on the production of Advanced Chemistry Cells (Energy Storage Lithium Ion Cells).
Change of Key Management Personnel
In December 2022, there was a change in the Managing Director position, with Prashant Mehta being replaced by Suresh Kumar Sarojamma Linge Gowda on May 30th, 2023. Additionally, there was a change in the statutory auditors during FY22.
Disclaimer: The article is for informational purposes only and not investment advice.