The Third Eye: Rajesh Exports

All that glitters is Gold !!!

Rajesh Exports scrip has show good strength in last few sessions. The stock has been able to garner investor confidence with slew of order wins and impressive performance.

The company has announced results for the third quarter with Revenues clocking a 46% growth. Net profits zoomed by 114 % and exports grew by 46%.

The company has recently bagged an order from a major jewellery wholesaler worth Rs.1.5 billion which will be executed by March,2006.

Given the strong performance in Q3 and the orders in hand, the company is expected to post robust results for Q4 too. The performance of the company has not yet been fully factored in terms of its stock price and hence give ample room to the stock for upward movement.


Shankar Nath said...

Hi Rajesh,

Rajesh Export from a value-ist viewpoint.
1. The stock has an NCAV of 28.47 rupees.
2. And although we can fume on the heavy debt the co. has on its B/S, the cash of 167 rupees per share more than makes up for this.
3. The strength of this stock is the wonderful P/E it holds. I would predict a PAT closure of 65 crs for this FY for the company and at today's P/E .. thats 11.96 (typical good)

Now we can make some intelligent guesses here after looking at the books (qtr data) such as -The dividend payout for this yr will be higher than 100%. I am attempted to assume a payout of 200% because at 1.4 crore shares, thats a apportionment of 5.6 crores which is less than 10% of the estimated PAT. That would make the dividend yeild - 1.96%.

It would take some portions of this stock at this price. Given the bouyancy in the market, I dont expect the stock price to go any further down, so donot expect too much of down-side to the price of this stock.

Warm Regards, Shankar


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