Home / Markets / Stock Markets /  CDGS stock hit 52-week-high after signing agreement with Centre & Karnataka govt

With a market valuation of 26,726.93 Cr, Rajesh Exports Ltd. is a large-cap company that operates in the consumer discretionary goods and services (CDGS) industry. The corporation, which has operations all over the world and is headquartered in Bangalore, India, is a pioneer in the worldwide gold business. The largest exporter of gold items from India and the lowest-priced manufacturer of gold jewellery in the world is Rajesh Exports Ltd. (REL), which handles 35% of the world's gold production. On Monday, shares of Rajesh Exports rose by almost 9% in the early trading session, setting a new 52-week high. On the NSE, the stock reached a new 52-week high of 1,029.70 before closing at 904.70 with a 4.45% downside gap from its previous close of 946.85. The stock recorded a total average volume of 1,100,358 shares including BSE and NSE compared to the weekly average volume of 552,649 shares.

Recently, Rajesh Exports Ltd. and the ministries of the Center and Karnataka reached a deal to build a unit for 5GWh lithium batteries. The Department of Industries and Commerce (Government of Karnataka), ACC Energy Storage Pvt Ltd., and the Ministry of Heavy Industries (Government of India) have all signed the Tripartite Agreement. The company claims that the Government of India has chosen it as one of the three participants of the Rs. 18,100 Crores PLI Scheme for the development of Advanced Chemistry Cells. Rajesh Exports Limited has established a 100% subsidiary in the name of ACC Energy Storage Pvt Ltd in accordance with the PLI Scheme's requirements in order to carry out the project for the manufacturing of Advanced Chemistry Lithium Ion Cells for the production of Lithium Ion Batteries.

“The Tripartite Agreement has been executed wherein the Ministry of Heavy Industries, Government of India has assured of all the required support for setting up of 5 GWhr Giga Factory. The Department of Industries and Commerce, Government of Karnataka has also assured all the required support and tailor made incentive package for setting up the Giga Factory and ACC Energy Storage has undertaken to execute the project within the required time limit," said Rajesh Exports in a stock exchange filing.

Mr Rajesh Mehta, Chairman, Rajesh Exports Ltd. said, “While leading the Global Gold business, REL is foraying into advanced technology solutions for energy storage with an aim to provide clean and green energy to the World. REL would be taking all the required steps to emerge as a leading global player in advanced technology solutions for energy storage"

Commenting on the technical outlook of the stock Ravi Singh, Vice-President and Head of Research at Share India said “Rajesh Exports is in structurally up trend after making recent lows. The historical price action in the stock reflects that any meaning full in the stock attract market participants, which helps the stock to gain its uptrend. Currently, On technical setup, the 14 periods RSI is in Buy zone, the parabolic SAR is trading below the price action which indicates up move in the stock is probable in the near term. The stock is trading well above its MAs further strengthening the bull run. The immediate support is placed around 840 levels and below that is 780 levels. Whereas, immediate resistance is placed at 1050 levels and above that are 1080 levels for near terms. The immediate target in Rajesh Exports stock is placed around 1050 levels in coming trading sessions. As we can see stock is showing out performance continuously if it is above to close above 1000 then it can reach upto 1400 in 6 months."

Vipul Das
Vipul Das is a Digital Business Content Producer at Livemint. He previously worked for Goodreturns.in (OneIndia News) and has over 5 years of expertise in the finance and business sector. Stocks, mutual funds, personal finance, tax, and banking are among his specialties, and he is a professional in industry research and business reporting. He received his bachelor's degree from Dr. CV Raman University and also have completed Diploma in Journalism and Mass Communication (DJMC).
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