Our 7th company in the Series of Best Stocks to Buy in India for Short term 2021 is Rajesh Exports Ltd.
This company is good for investing purpose or not ?
Let’s start with the Company profile
Company Profile :
Rajesh Exports Limited is a holding company, which is involved in the business of gold and gold products. The Company is engaged in the manufacture of gold jewelry, gold products and sale of bullion.
Now Let’s check the important fundamental figures of this company. This is a mid cap company with Market Cap ₹18,066cr. We can check more fundamental details below in depth:
Company Fundamental Detail :
PE Ratio: 21.37
Sector PE Ratio: -387.46
PE Ratio of this company is high but better than Sector’s PE. So it’s a Good PE than the peers of this company.
PB Ratio : 1.72
Sector PB Ratio : 5.26
PB Ratio of this company is low than Sector’s PB ratio. So it’s Good PB than the peers of this company.
Dividend Yield : 0.16%
Sector Dividend Yield : 0.59%
Dividend Yield of this company is low than Sector. Dividend of this company is Below Average than the peers of this company.
ROE (Return on equity) and ROCE (Return on capital equity) is Below Average
According to above data, this company is looking fundamentally average. Now We’ll check the company Financially data:
Company Financial Detail
We should check now liabilities of company also in the below table
Total Current & Non Current Liabilities
Liabilities of a company refers to the debt of that company. We should also aware the debt of company. In 2021 , Company have 20,193.74 Cr. debt.
Let’s check the Free Cash flow of the company
Free Cash flow
Debt Level: RAJESHEXPO’s debt to equity ratio (8.3%) is considered satisfactory.
Reducing Debt: RAJESHEXPO’s debt to equity ratio has reduced from 82.7% to 8.3% over the past 5 years.
Debt Coverage: RAJESHEXPO’s debt is well covered by operating cash flow (287.7%).
Interest Coverage: RAJESHEXPO’s interest payments on its debt are well covered by EBIT (5.2x coverage).
Share Holding Pattern
|Promotor Holding||Foreign Institution|
|Other Domestic Institutions||Retail & Others|
Above table showing Promotors holding which is 54.05% in June 2021. FIIs invested in June 2021 with 16.99% and retail investor is 19.32%.
Now We’ll check the return of the company, This company started from Rs. 2.00 at 4 July 2001. This company given 35.48% returns in last 1 year from 2020 to 9 Sep 2021.
Investment Checklist for Rajesh Exports Ltd.
- The company is currently profitable
- Earnings are forecast to grow by an average of 39.8% per year for the next 3 years
- Debt level is low and not considered a risk
- Dividend is too low to be a concern
- Share price has been stable over the past 3 months
- The company’s earnings are high quality
- No concerning events detected
- Shareholders have not been meaningfully diluted in the past year or recently listed
- Revenue is meaningful (₹2,413B)
- Market cap is meaningful (₹181B)
- RAJESHEXPO does not have negative shareholders equity.
- Profit margins (0.3%) are lower than last year (0.7%)
- Latest financial reports are more than 6 months old
According to its historical performance we can predict stock target.
Entry Buying Zone : Premium members can see only
Target: Premium members can see only
Time Horizon:Premium members can see only
Risk Profile: Premium members can see only
Hope you liked Our 7th company in the Series of Best stocks to buy in India for short term 2021. We tried to cover many important things about this company, if you think anything left to cover, you can comment us and we’ll try to cover those things also.
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