Rajesh Exports (REL) claims to process 35% of the world’s gold, posts sales bigger than India’s GDP growth dreams, and still earns margins thinner than a gold leaf on your kulfi. At FY25 sales of ₹4.23 lakh crore, PAT is a mere ₹95 Cr. That’s a net margin of 0.02%, making kirana stores look like high-margin fintech startups. The stock trades at P/E ~62, market cap ₹5,854 Cr, and carries corporate governance issues longer than a CBI charge sheet. If this isn’t the definition of “sus,” what is?
2. Introduction
Some companies are straightforward: Titan sells jewelry, Dixon assembles gadgets. Rajesh Exports? Their story sounds like a Netflix scam-thriller.
Started in 1989, they grew into a gold refinery, jewelry manufacturer, exporter, and retailer.
They acquired Valcambi (Switzerland), giving them a backdoor into global bullion.
They run 82 retail stores under “Shubh Jewellers” in Karnataka.
They also claim to have an order book of ₹70,250 Cr, bigger than the combined market caps of most midcaps.
Yet the financials look bizarre: huge revenues, wafer-thin profits, missed audit filings, delayed compliance, and subsidiaries whose books aren’t even audited by the main auditor. Combine that with litigation over billions in letters of credit, and you get a script better suited for an OTT financial drama.
So the real mystery: Is Rajesh Exports a misunderstood gold giant or a corporate version of “Yeh Dil Maange More, Balance Sheet Dikhaye Less”?
Manufacturing: 350 TPA capacity for jewelry across India + Dubai.
Products: Chains, bangles, rings, earrings, antique jewelry, machine chains—you name it, they make it. Their portfolio has 29,000 active designs, basically more SKUs than Flipkart’s electronics category.
Retail: “Shubh Jewellers” with 82 outlets. Their positioning? Affordable jewelry for mass India.
Exports: Supply to 60+ countries, mainly UAE & Europe, plus gold bars to global bullion banks.
But here’s the plot twist: 99% of their costs are raw materials. OPM is <1%, making them look less like a jewelry company and more like a glorified commodities trader.
And because that wasn’t enough, in 2023 they also announced a 5 GWh lithium-ion battery venture under ACC Energy Storage, riding the EV hype train. Because why not?
4. Financials Overview
Metric
Latest Qtr (Jun’25)
YoY Qtr (Jun’24)
Prev Qtr (Mar’25)
YoY %
QoQ %
Revenue (₹ Cr)
1,99,190
91,445
96,630
118%
106%
EBITDA (₹ Cr)
67
-164
67
NM
0%
PAT (₹ Cr)
1.95
-30
35.5
106%
-94.5%
EPS (₹)
0.07
-1.03
1.20
NM
-94.2%
Commentary: REL’s quarterly sales are eye-watering, but PAT is like finding water in Rajasthan—scarce. Annualized EPS = ₹0.28. On trailing EPS ₹3.21, P/E is ~62. Classic “too good to be true” vibes.
5. Valuation – Fair Value Range Only
P/E Method: EPS ₹3.2 × P/E band (10–20 for commodity-like biz) → ₹32 – ₹64.
EV/EBITDA: EV ~₹4,886 Cr, EBITDA ~₹285 Cr → EV/EBITDA ~17. Industry peers <15. Fair EV range → Per share value ₹100 – ₹150.
DCF (LOL attempt): With margins <1%, forecasting FCF is like predicting monsoon in April. Conservative range: ₹120 – ₹180.
🎯 Fair Value Range: ₹30 – ₹180 (Educational only). CMP ₹198 is above comfort zone.
6. What’s Cooking – News, Triggers, Drama
EV Diversification: Lithium-ion battery unit (5 GWh, Dharwad). Approved under PLI. No revenue yet, but good for headlines.
Litigation: ₹3,879 Cr letters of credit with Canara Bank—case pending in court.
