World's Largest Gold Processor Rajesh Exports Crashes, Hits Lower Circuit

• Rajesh Exports, the world's largest gold processor, hit a 5% lower circuit on December 26, with trading halted due to a sudden rush of sell orders.
• The stock opened at ₹212.78, down from its previous close of ₹223.97, despite a recent 22% rally from ₹188 to ₹230 in just four trading sessions.
• Despite FIIs increasing their stake to a 5-quarter high of 15.18%, the company has seen a 68% decline in share value over the last 3 years.
• Key concerns include low profit (PAT ₹132 crore), low RoE (4.23%), high debt, no dividends, and sector pressures like duty on jewelry and sluggish retail demand.
• The stock, once trading above ₹600, has become a significant value destroyer for investors, with its market cap declining by 65% in FY25.

Why It Matters: Rajesh Exports' sudden crash highlights underlying financial weaknesses despite recent rally and FII interest.