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You are here : IndiaNotes >> Research & Analysis >> Companies >> Rajesh Exports Ltd. >> Research

Rajesh Exports Q1FY17: Fundamental Analysis - Firstcall India Equity

Firstcall India Equity | 12 Aug, 2016  | Follow Author | Add to my Favourites 
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SYNOPSIS

  • Rajesh Exports Ltd (REL) is a zero debt company on standalone basis, with its undivided focus and expertise, the company is currently the largest constituent of gold business in the world.

  • The company is the only gold company to have been included in the Global Fortune 500 list of companies.

  • Consolidated revenue for the quarter rose by. 289.04% to Rs. 589167.64 mn from Rs. 151442.56 mn, when compared with the prior year period.

  • During Q1 FY17, consolidated EBIDTA is Rs. 3815.59 mn as against Rs. 3963.39 mn in the corresponding period of the previous year.

  • During the quarter, consolidated net profit jumps to Rs. 2699.08 mn against Rs. 2371.62 mn in the corresponding quarter ending of previous year, increase of 13.81%.

  • During Q1 FY17, consolidated Profit before tax grew 15.21% at Rs. 2732.35 mn against Rs. 2371.62 mn in Q1 FY16.

  • EPS of the company stood at Rs. 9.14 during the quarter, as against Rs. 8.03 per share over previous year period.

  • On July 14, 2016, Rajesh Exports has bagged anI export order worth Rs. 7860 Mn of designer range of gold and diamond studded jewellery and medallions from UAE.

  • On June 08, 2016, the company has bagged an export order worth Rs. 6530 Mn of designer range of gold and diamond studded jewellery and medallions from Singapore.

  • Net Sales and PAT of the company are expected to grow at a CAGR of 71% and 40% over 2015 to 2018E respectively.

 

OUTLOOK AND CONCLUSION

  • At the current market price of Rs.454.35, the stock P/E ratio is at 11.12 x FY17E and 9.59 X FY18E respectively.

  • Earning per share (EPS) of the company for the earnings for FY17E and FY18E is seen at Rs. 40.86 and Rs. 47.36 respectively.

  • Net Sales and PAT of the company are expected to grow at a CAGR of 71% and 40% over 2015 to 2018E respectively.

  • On the basis of EV/EBITDA, the stock trades at 3.24 x for FY17E and 2.50 X for FY18E.

  • Price to Book Value of the stock is expected to be at 2.35 x and 1.89 x for FY17E and FY18E respectively.

  • Hence, we say that, we are Overweight in this particular scrip for Medium to Long term investment.

 


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About Firstcall India Equity

Firstcall India Equity of Firstcall India Equity Advisors Pvt. Limited (FIEA), is a leading financial services provider in India and a SEBI Registered Category-I Merchant Banker. FIEA is a culmination of a credible Equity Research Capabilities, Long Standing Relationship with leading FIIs, DFIs, MFs, Overseas Pension Funds etc. The company’s research caters to the needs of the largest news wire and media houses of the world namely Reuters, Thomson, Capital IQ, Themarkets.com, Emerging Markets Euro money Publications-UK. The Company is among the major players in the Debt and Equity markets.


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Disclaimer: The author has taken due care and caution to compile and analyse the data. The opinions expressed above are only the views of the author, and not a recommendation to buy or sell. Neither the author nor IndiaNotes.com accept any liability whatsoever arising from the use of any of the above contents.




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