Query Trends : Rajest Exports

Query : I have Rajesh Exports 200 shares @ Rs.800, shall I hold or sell? it got almost stagnant, at around Rs.800-860 range, what are the future prospects? If I hold for one year time frame? Gautam Kardam

Thebullishtrends : Rajesh Exports closed today at Rs.858. The primary activity of Rajest Exports is manufacture and export of Gold Jewellery. For the quarter end Sept'07 it posted net profit of Rs.54.24crore on sales of Rs.2044.21 crore on total share capital of the company is Rs.7.39 crore.

Rajest Exports announced a liberal bonus issue at 2:1(can get 2 bonus shares for one share held),and Rajesh Exports proposed to split it's Rs.2/- face value shares into Rs.1/-value the comapny convened EGM to approve the stock split and bonus issue.

Down fall in dollar rate when it compared to Rupee Jewelllery export companies margins are effecting. Companies like Geetanjali Gems, planning to operate local stores to over come the dollar rate cut, and Rajesh also has started to launch retails stores in India. Now the company is concentrating in South India,there demand for gold jewellery is more it planned to launch retail stores under the brand name of "Shub Jewellery" it will launch 100stores across the South India Recently Rajesh Exports has got an order from Gold Star Jewellery Singapore to supply latest range of jewellery worth of Rs.743 crore. The order should be completed before Feb'07, it will reflect in the fourth quarter.

Overall Rajest Exports is having very good fundamentals, where being this is a export oriented company, and incase further rupee appreciation will effect these companies margins, but expanding operations within India is a better advantage to Rajest Exports. Hold this scrip for one year long term, you will get healthy returns.