Rajesh Exports shoots up 20.55 per cent in last five trading sessions

Rajesh Exports (REL) is going to utilise extensive networks of Valcambi to tap European and North American markets. In the month of July, Rajesh Exports took over the Switzerland headquartered Valcambi for USD 400 million in an all cash deal. The share price of the company shoots up 20.55 per cent to Rs 490 on BSE within last five trading sessions.

Rajesh Exports has developed a special range of designer jewellery suitable for the local European and the American markets. Valcambi has an extensive marketing network in the European and the American markets which it has developed over a period of time. REL is an India based jewellery designer and to market its products abroad is difficult, therefore, the company will operate the process of marketing its products through Valcambi.

There are various benefits for strong business growth. The distribution of products to high end markets would bring in a significant addition to the profitability of the REL. These products have high margins in European and North American high end markets.

REL bagged an order of Rs 1123 crore of designer range of gold and studded diamond jewellery and medallions from Singapore. The order will be completed by December 31, 2015. It will be executed from its manufacturing facility at Bengaluru. The manufacturing facility has an installed capacity to process 250 tonnes of jewellery per annum.

Considering REL's latest quarter result, the revenue of the company boosted by almost double to Rs 15144 crore in Q1FY16 as compared to same period in previous financial year. The company's net profit increased by 100.39 per cent to Rs 237 crore in Q1FY16 on yearly basis. It is zero debt company.

REL's shareholding pattern indicates that DII holdings expanded by 36 basis points to 3.31 per cent. However, its FII holdings contracted by 19 basis points to 16.77 per cent during June 2015 quarter.

REL is engaged in manufacturing gold and diamond jewelry. The company exports its products worldwide and distributes them within India to the wholesale jewelry market. It also retails its products through its own network of retail jewelry showrooms Shubh Jewelers spread across India.The Company started a Gold Revolution in the State of Karnataka through its retail stores SHUBH jewelers. REL has 82 retail outlets of SHUBH jewelers. REL is considered to be a low cost jewellery producer fully integrated from Mining to Retailing. The Company manufactures a wide range of pendants, rings, earrings, necklaces, necklace sets, bangles and bracelets in gold and diamond.