Rajesh Exports has been experiencing a mix of recent developments, with predominantly negative trends overshadowing some limited positive indicators.
Recent Positive Developments
Stock Performance Recovery: On June 25, 2025, Rajesh Exports showed strong intraday gains, rising 6.47% to Rs 196.65 and outperforming its sector by 3.08%[1][2]. The stock reached an intraday high of Rs 201.25 and demonstrated notable trading activity in the gems, jewelry, and watches sector[1].
Financial Growth Indicators: The company reported significant growth in Profit Before Tax and Profit After Tax in its latest quarterly results[3]. Net sales showed a 44.39% growth for the quarter ending December 2024 compared to the previous quarter[3]. Additionally, the company reported sales exceeding INR 50,000 crore as of 2024, showcasing robust market presence[4].
Expansion Plans: Rajesh Exports has ambitious diversification plans, including heavy investments in the EV and semiconductor sectors. The company is participating in the PLI scheme for batteries with a planned 5 GWh lithium-ion cell plant in Karnataka, and through its subsidiary Elest, is setting up an AMOLED display fab in Telangana under the Semicon India scheme[5].
Significant Negative Developments
Severe Long-term Performance Decline: The stock has experienced catastrophic losses, falling 80% over three years and 65.54% over the past three years[6][1]. Year-to-date performance shows a decline of 14.54%, with the stock down 48% in the last year alone[6][1].
Financial Performance Concerns: Despite some quarterly improvements, the company faces serious profitability challenges. The profit before tax fell by 224.8% and profit after tax declined by 117.2% compared to previous quarters[7]. Operating profit reached its lowest value of -164.36 crore in the last five quarters, with operating profit margin hitting -0.18%[7].
Governance and Compliance Issues: Multiple red flags have emerged regarding the company's financial reporting. For three consecutive years (FY20 to FY23), preliminary financials did not align with final annual reports, with discrepancies amounting to Rs 5,48,251 million[8]. The company has also faced persistent non-compliance issues, missing critical document filings required by SEBI regulations[8].
Regulatory Challenges: There are reports that Rajesh Exports could face a penalty of Rs 1.25 billion for failing to meet PLI scheme deadlines[5]. The company has also been flagged for undisclosed related party transactions and questionable transparency in financial disclosures[8].
Market Sentiment: MarketsMojo has issued a "Strong Sell" rating for the stock, and technical analysis indicates a shift from mildly bullish to mildly bearish trends[7][2]. The stock shows concerning reliance on non-operating income, which constituted 39.84% of PBT, raising sustainability questions[3].
The overall picture suggests that while Rajesh Exports may show occasional short-term gains and has expansion plans, the company faces substantial structural challenges including governance issues, regulatory compliance problems, and deteriorating long-term financial performance that significantly outweigh any positive developments.