Over the course of three years, Rajesh Exports, engaged in the manufacture, export and retailing of jewellery, has had a blistering run in the stock market. In 2008 and early 2009, consumption, both global and domestic was at a low. However, domestic consumption recovered several paces ahead of the economies of the US and Europe, regions which formed a good part of Rajesh Exports' markets.

This led to the company refocusing efforts on domestic shores, launching its retail operation under the brand ‘Shubh'. Shubh stores currently total 73 across the country. Indian gold demand appeared unfazed by escalating gold prices, readjusting after momentary lapses, every time gold prices surged.

In the bull run from March '09 to November '10, stock markets propelled any stock with a domestic consumer tilt, upwards. Rajesh Exports was a direct beneficiary of this despite its nascent entry into the branded jewellery space. Signs of a recovering consumption in western economies also helped.

Revenues have grown at 35 per cent compounded annually over the past three years. However, high raw material costs, at 97 per cent of sales, resulted in low profit growth. Net profits have grown at an annual rate of just nine per cent over the past three years. Operating margins have, therefore, hovered at a low two per cent.

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