Rajesh Exports shines after denial of incurring losses on currency options

Rajesh Exports jumped 5.48% to Rs 74.15 at 11:17 IST on BSE after the company clarified that it has not suffered any losses in any type of currency options, commodity trading or any other speculative business.

Meanwhile, the BSE Sensex was down 171.61 points or 1.06% to 15,916.36 after a drop in US durable goods stroked concerns the US is already in a recession.

On BSE, 5.08 lakh shares were traded in the counter. The scrip had an average daily volume of 3.71 lakh shares in the past one quarter.

The stock hit a high of Rs 74.50 and a low of Rs 69.25 so far during the day. The stock had a 52-week high of Rs 170 on 12 December 2007 and a 52-week low of Rs 57.54 on 3 April 2007.

The mid-cap scrip had underperformed the market over the past one month till 26 March 2008, declining 42.78% compared to the Sensex's fall of 9.66%. It also underperformed the market in the past one quarter, declining 52.59% compared to Sensex's decline of 20.43%.

The company's current equity is Rs 22.17 crore. Face value per share is Rs 2.

The current price of Rs 74.15 discounts its Q3 December 2007 annualized EPS of Rs 66.31, by a PE multiple of 1.18.

The company made the clarification amid rumours that many Indian corporates have suffered losses in the currency derivatives, options and commodity trading. Rajesh Exports (REL) further said that its performance will not be affected by rising gold prices. The company is confident of reporting a robust business and surpassing the guidelines of sales and profitability for the current year.

Rajesh Exports posted 117.8% jump in net profit to Rs 61.25 crore on 10.4% growth in net sales to Rs 2067.23 crore in Q3 December 2007 over Q3 December 2006.

The company's principal activity is to manufacture gold jewellery. REL is the country's largest exporter of gold jewellery.