Rajesh Exports, world’s largest gold processing company, ended 2018 on a high note. With gold picking up pace on the road to recovery, the company’s stocks as well as retail dimensions are expected to be the primary choice of noble metal investors in 2019. Banking on gold’s emotional as well as investment prospect, public will be keeping an eagle’s eye on the trade prices of the country’s largest gold exporter.
According to figures till September 2018 quarter, the operating profit of Rajesh Exports stood at Rs 454.81 crore with sales of Rs 53,35.80 crore, a 2.39% annual increase. The company’s earnings in the aforementioned period before basic deduction, better known as EBITDA, were recorded at Rs 454.81 crore. The positive figures come after the procurement of two major orders worth Rs 933 crore and Rs 892 crore respectively, both from the Middle East.
With onset of 2019, gold is expected to continue as a hedge against inflation. Though global factors like drop in crude oil prices are maintaining the level of inflation, general elections in 2019 may act as a pre-cursor to fluctuations. Risk taking investors will keep dealing in mid-cap and small-cap funds while maturity plans and fixed deposits are the choice of low-risk investors.
Considering the investment avenue of shares, Rajesh Exports has proved to be one of the best performing companies with a six time rise in prices, from 2013 to 2018. With the vision of Chairman Rajesh Mehta, the company has sailed through challenging times and maintained operational stability. Furthermore, 2019 is expected to witness the expansion of Rajesh Exports.
The company has dropped hints about the expansion of its retail arm, Shubh Jewellers, with more stores opening across the country. In addition, the vision of their Chief Strategist and Rajesh Mehta’s son, Siddharth Mehta, might introduce the retail arm in the e-commerce domain.
From mutual fund SIP’s to stock market and physical jewelry, gold offers multiple investment avenues for people from all walks of life. Though the choices vary depending upon the nature of investment’s tenure, companies like Rajesh Exports are anticipated to yield hefty returns, considering their ongoing market performance and simultaneous gold recovery.