Recent Price Movement and Market Context
On the trading day, Rajesh Exports Ltd’s stock touched an intraday low of Rs.147, representing a 2.75% decline from the previous close. This marks the fourth consecutive day of losses, with the stock shedding 6.98% over this period. The decline outpaced the sector’s underperformance, as the stock lagged behind the Gems, Jewellery And Watches sector by 2.18% on the day.
The broader market context saw the Sensex open flat but subsequently fall by 333 points, or 0.44%, closing at 81,887.48. The index remains below its 50-day moving average, although the 50DMA itself is positioned above the 200DMA, indicating mixed technical signals for the market overall.
Rajesh Exports Ltd is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, underscoring the prevailing bearish momentum in the stock.
Performance Over the Past Year
Over the last 12 months, Rajesh Exports Ltd’s stock has declined by 11.04%, contrasting sharply with the Sensex’s positive return of 9.75% during the same period. The stock’s 52-week high was Rs.239, indicating a substantial drop of approximately 38.5% from its peak.
This sustained underperformance is further highlighted by the stock’s consistent lag behind the BSE500 index in each of the past three annual periods, reflecting challenges in maintaining competitive returns within its sector and the broader market.
Momentum just kicked in! This Small Cap from the Auto - Trucks sector entered our list with explosive short-term signals. Catch the wave while it's still building!
- - Fresh momentum detected
- - Explosive short-term signals
- - Early wave positioning
Valuation and Financial Metrics
Rajesh Exports Ltd currently holds a Mojo Score of 41.0 and carries a Mojo Grade of Sell, downgraded from Hold as of 31 Dec 2025. The company’s market capitalisation grade stands at 3, indicating a mid-tier valuation relative to its peers.
The stock’s valuation metrics reveal a Price to Book Value ratio of 0.3, which is considered very expensive given the company’s Return on Equity (ROE) of just 0.8%. This premium valuation is notable when compared to the average historical valuations of its sector peers.
Despite the stock’s negative price performance, the company’s profits have shown significant growth, with a 168.1% increase over the past year. The Price/Earnings to Growth (PEG) ratio is 0.2, suggesting that earnings growth has outpaced the stock price decline, although this has not translated into positive returns for shareholders.
Profitability and Sales Growth
Rajesh Exports Ltd reported a growth in net sales of 34.18%, reflecting robust top-line expansion. The company declared positive results for three consecutive quarters, with the latest quarter’s Profit Before Tax excluding other income (PBT LESS OI) reaching Rs.54.77 crores, a 184.6% increase compared to the previous four-quarter average.
Net profit after tax (PAT) for the quarter stood at Rs.71.48 crores, marking a 116.7% growth versus the prior four-quarter average. Additionally, the company’s cash and cash equivalents at the half-year mark were at a record high of Rs.2,592.14 crores, indicating a strong liquidity position.
Capital Structure and Institutional Holdings
The company maintains a low average debt-to-equity ratio of zero, signalling a debt-free balance sheet which reduces financial risk. Institutional investors hold a significant 26.22% stake in Rajesh Exports Ltd, reflecting confidence from entities with extensive analytical resources.
Considering Rajesh Exports Ltd? Wait! SwitchER has found potentially better options in Gems, Jewellery And Watches and beyond. Compare this small-cap with top-rated alternatives now!
- - Better options discovered
- - Gems, Jewellery And Watches + beyond scope
- - Top-rated alternatives ready
Long-Term Growth Trends
One of the key factors influencing the stock’s current valuation and market sentiment is the company’s long-term growth trajectory. Over the past five years, operating profit has declined at an annualised rate of 20.67%, indicating challenges in sustaining profitability growth over an extended period.
This trend contrasts with the recent quarterly profit improvements and sales growth, highlighting a divergence between short-term financial performance and longer-term earnings momentum.
Summary of Key Concerns
Rajesh Exports Ltd’s stock has experienced a notable decline to Rs.147, its lowest level in the past year, driven by a combination of factors including persistent underperformance relative to benchmarks, a premium valuation despite modest ROE, and a negative long-term growth rate in operating profit.
While recent quarterly results have been positive, the stock’s price action and technical indicators reflect caution among market participants. The company’s strong liquidity and low leverage provide a stable financial foundation, but the valuation and growth metrics continue to weigh on investor sentiment.
Technical and Market Positioning
The stock’s position below all major moving averages signals a bearish technical outlook. The four-day consecutive decline and underperformance relative to the sector and Sensex reinforce the current downward momentum. The broader market’s mixed signals add to the cautious environment surrounding the stock.
Conclusion
Rajesh Exports Ltd’s fall to a 52-week low of Rs.147 encapsulates a complex interplay of valuation concerns, long-term growth challenges, and recent market dynamics. The company’s financial results show pockets of strength, particularly in sales growth and quarterly profits, but these have yet to translate into sustained positive stock performance.
Investors and market observers will continue to monitor the stock’s price action and fundamental developments as it navigates this phase of its market cycle.
Limited Period Only. Start at Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Get 71% Off →
