Recent Price Movement and Market Context
The stock has experienced a consecutive three-day decline, losing 4.55% over this period. Today's price of Rs.150 represents the lowest level in the past year, down from its 52-week high of Rs.239. This decline contrasts with the broader market, where the Sensex opened higher at 82,418.78 points, gaining 142.71 points (0.17%) and currently trading near 82,393.33 points, just 4.57% shy of its own 52-week high of 86,159.02. Despite the Sensex's modest gains, Rajesh Exports has lagged behind, underperforming its sector by 0.77% today.
The stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a persistent bearish momentum. This technical positioning underscores the challenges the stock faces in regaining upward traction in the near term.
Financial Performance and Valuation Metrics
Over the last year, Rajesh Exports has delivered a total return of -9.63%, underperforming the Sensex's 10.44% gain and consistently lagging behind the BSE500 index across the past three annual periods. Despite this, the company reported a substantial increase in profits, with net sales growing by 34.18% and profits rising by 168.1% over the same timeframe. The latest six-month figures show net sales at Rs.410,310.04 crore, up 150.87%, and profit after tax (PAT) at Rs.175.53 crore, up 116.54%. Profit before tax excluding other income (PBT less OI) for the latest quarter stood at Rs.54.77 crore, reflecting a 184.6% increase compared to the previous four-quarter average.
However, these positive earnings trends have not translated into improved investor sentiment or stock performance. The company’s return on equity (ROE) remains low at 0.8%, and it carries a price-to-book value ratio of 0.3, indicating a valuation premium relative to its peers’ historical averages. The long-term growth outlook appears subdued, with operating profit declining at an annual rate of -20.67% over the past five years.
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Sector and Market Comparison
Rajesh Exports operates within the Gems, Jewellery and Watches sector, which has seen mixed performance in recent months. While mega-cap stocks have led the Sensex's gains, Rajesh Exports has not mirrored this trend, continuing to trade at a discount to its historical highs and sector averages. The company’s market capitalisation grade stands at 3, reflecting a mid-tier valuation relative to its peers.
Institutional investors hold a significant stake of 26.22%, indicating a level of confidence in the company’s fundamentals despite the stock’s recent price weakness. The company maintains a low average debt-to-equity ratio of zero, suggesting a conservative capital structure that limits financial risk.
Rating and Quality Assessment
MarketsMOJO has downgraded Rajesh Exports from a Hold to a Sell rating as of 31 December 2025, reflecting concerns over the company’s long-term growth trajectory and valuation metrics. The current Mojo Score stands at 41.0, categorised as Sell, signalling caution for investors. This downgrade follows a period of consistent underperformance against benchmark indices and peers, with the company’s PEG ratio at 0.2, indicating a disconnect between earnings growth and stock price appreciation.
Summary of Key Metrics
To summarise, Rajesh Exports Ltd’s stock has reached a 52-week low of Rs.150, down from Rs.239 at its peak within the last year. The stock’s recent three-day decline of 4.55% and trading below all major moving averages highlight ongoing price pressure. Despite strong profit growth and positive quarterly results, the company’s valuation remains expensive relative to its returns and sector peers. The downgrade to a Sell rating and a Mojo Grade of 41.0 further underline the challenges faced by the stock in the current market environment.
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Conclusion
Rajesh Exports Ltd’s stock performance over the past year has been marked by a steady decline culminating in a fresh 52-week low of Rs.150. While the company has demonstrated robust profit growth and maintained a strong balance sheet with negligible debt, these factors have not translated into positive stock price momentum. The stock’s valuation metrics and long-term growth rates remain areas of concern, as reflected in the recent downgrade and Mojo Grade. The broader market’s relative strength contrasts with the stock’s underperformance, underscoring the challenges Rajesh Exports faces in regaining investor confidence.
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