Rajesh Exports (REL) isn’t just another jewelry company—it claims to process 35% of the world’s gold, but manages to squeeze out a net profit margin of 0.02%. That’s like running a dosa stall that serves half of Bengaluru but earns less than the chutney supplier. With ₹4.2 lakh crore in revenues, ₹95 Cr PAT, and multiple corporate governance red flags, REL is the Desi version of “too big to be believable.”
2. Introduction
Incorporated in 1989, REL has grown from a Bengaluru jewelry shop into a “global gold powerhouse.” On paper, it looks dazzling: refining capacity of 2,400 tonnes, design portfolio of 29,000 SKUs, exports to 60+ countries, and ownership of Valcambi, Switzerland—the Rolls Royce of refineries.
But the glamour fades when you peek into the financials: 99% of revenue is eaten up by material costs, leaving operating margins thinner than papad. Employee costs? ₹183 Cr for 111 employees. Either these guys are mining Bitcoin on office servers, or they’ve mastered the art of high-paying ghost jobs.
So the question is: Is REL a misunderstood gold behemoth or just a high-gloss accounting puzzle wrapped in Swiss chocolate foil?
Manufacturing: 350 TPA of jewelry & products via plants in Bangalore, Cochin, Dubai.
Products: Chains, bangles, antique jewelry, machine-made studs, plus 29,000 designs.
Exports: To 60+ countries, mainly Europe & UAE. Valcambi bars go to global bullion banks.
Retail: 82 SHUBH Jewellers stores in Karnataka.
New Bets: EV batteries via ACC Energy Storage (PLI scheme, 5 GWh Dharwad project).
On paper, this is vertically integrated gold nirvana. In practice, it’s like running a massive wedding catering service and pocketing less than the tip jar.
4. Financials Overview
Metric
Latest Qtr (Jun’25)
YoY Qtr (Jun’24)
Prev Qtr (Mar’25)
YoY %
QoQ %
Revenue
₹1,99,190 Cr
₹91,445 Cr
₹96,630 Cr
+118%
+106%
EBITDA
₹67 Cr
₹37 Cr
₹67 Cr
+81%
Flat
PAT
₹1.95 Cr
-₹30 Cr
₹35.5 Cr
+106%
-94%
EPS (₹)
0.07
-1.03
1.20
NA
-94%
👉 With these margins, even vada pav stalls in Dadar might have higher profitability.
5. Valuation – Fair Value Range
P/E = 54.5x (for a company growing profits at -40% over 5 years).
EV/EBITDA = 14.8x (rich, given wafer-thin OPM).
PB = 0.33x (cheap, but only because the market doesn’t trust the “B” in BV).
Fair Value Range (EduInvesting Est.): ₹90 – ₹150/share. Disclaimer: For educational purposes only. Not investment advice.
6. What’s Cooking – News, Triggers, Drama
Battery Bet: Entry into EV lithium-ion cell manufacturing (5 GWh, PLI approved).
