Why Rajesh Exports Ltd. is still a monopolistic stock to buy?



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Rajesh Exports
This 30-year-old stock listed company has given the returns of 6 times the amount invested by the investors in the past 5 years (as in 2019) and given the return of 200 times the money invested by a shareholder in the past 20 years.

They were first listed in the year 1995 on stock exchanges of India by issuing shares to raise Rs.10 crore. The face value of the share was Rs.10 and the listing was done at the price of Rs.50. The stock price has now become 3000 times in 2019. So if you had invested Rs.10,000 in the year 1995 the amount would have now become 3 crore rupees in 2019.

This company has a turnover of 2 lac crore (including the sales of all its group companies) when calculated for the year 2019. They do everything on their own from the mining of gold to the retailing in the value chain.

In other words, they not only manufacture gold but also have their retail showrooms all over the world to sell their gold. Their showrooms are known by the brand > Shubh Jewellers all over the world.

They do everything on their own in the value chain such as > Mining > Processing > Shaping > Cleaning > Designing > Manufacturing > Distribution > Retail Sales. They own the biggest gold refinery (named Valcambi) in Switcherland which they bought in the year 2015. This is the biggest gold refinery in the world. Valcambi is a gold currency accredited by the London Bullion Market Association. Valcambi supplies gold even to the central banks of different countries who accumulate gold as a reserve.

They have employed 500 European people in Europe to carry out their gold business in Europe. They make jewelry items from their gold which is sold in around 40-50 countries via their retail showrooms. They also have their manufacturing unit in 7-8 countries. They make the most cost-effective jewelry and that is the reason they have the monopoly.

They really work on very low margins in their business to make the most cost-effective jewelry items. With their monoply, they have made many other jewelry makers to quit from the market. None of the gold companies in the world (including China) could compete Rajesh Exports Ltd. They sell around 29000 designs of jewelry throughout the world. You can find 29000 designs in their active portfolio anytime though they have created around 10-12 lac designs in the past 30 years. This is the world's biggest portfolio of jewelry items in the world.

They process 35% of the world's total gold. They have their processing unit in different countries of the world including India. They process around 950 tonnes of gold every year which is even more than the consumption per year of gold by India which is 900 tonnes. All over the world around 3500-3600 tonnes of gold is processed every year out which around 1000 tonnes alone is processed by Rajesh Exports Ltd.

They were first listed in the year 1995 on stock exchanges of India by issuing shares to raise Rs.10 crore. The face value of the share was Rs.10 and the listing was done at the price of Rs.50. The stock price has now become 3000 times in 2019. So if you had invested Rs.10,000 in the year 1995 the amount would have now become 3 crore rupees in 2019.

In the Fortune 500 companies of the world, only 7 companies from India are included in it and Rajesh Exports Ltd. is one of them. Other companies of India included in the Fortune 500 are Reliance Industries, SBI (state bank of India), Hindustan Petroleum (HPCL), Bharat Petroleum (BPCL), Indian Oil (IOC) and Tata Motors.

Rajesh Mehta is the Chairman of Rajesh Exports Ltd. and here is the video interview with him by Vivek Bindra. He is from the state of Gujarat but resides in Bangalore and the first time he gave his interview in the media. He is really a very humble person and leads a very normal life though he is a billionaire now. He doesn't even own a Mercedes car though he is even capable to buy a helicopter for him. He is planning a total of 3500 retail showrooms all over the world having 2000 in India itself and rest of the 1500 showrooms in other countries in the next 10-15 years. So this company has a bright future and so worth investing.

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Written by: Rajesh Bihani who is the webmaster of this website. Know more about Rajesh Bihani)

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