Rajesh Exports, the Rs 7,000 crore Bangalore-based jewellery retailer and exporter, plans to tie up with leading retail chains worldwide to sell its branded diamond jewellery. The company is already engaged in discussion with J C Penney and other retail chains.
"So far, we have not finalised any retail chain. We intend to have a presence in 100 countries in the coming years by partnering the top two distributors in the respective nation. We are looking at 200 international clients worldwide for our retail operations," Rajesh Mehta, chairman, Rajesh Exports said today.
The retail expansion abroad is part of the company's strategy to reduce bulk exports and focus on private label exports, diamond jewellery and retail, which fetched better margins.
"It is our aim to reduce the quantum of bulk exports from the existing 93% to 25% over the next five years. While bulk exports offered operating margin of 3.5-4%, in case of retail it was 14%, private label exports - 20% for and diamond jewellery - 35%," he said.
This year, the company's revenue guidance is pegged at Rs 8,000 crore with close to Rs 7,200 crore coming from bulk exports. "Bulk exports constitute 93% of the total revenue. We want to improve the profit margin by reducing dependence on bulk exports," he added.
Mehta said the company will not be hit by the slowing demand in the US. "We are aware of the slow down in the US retail market. Besides, it will not affect us since we are not totally dependent on the US. Our business is well spread," he added.
The company earns 40% of its revenue from West Asia, 20% from Far East, 10% from Europe and 15% from the US.
Rajesh Exports has also lined up expansion of domestic retail operations with the demand for gold and diamond jewellery going up in the country. The company operates three format stores - Shubh, Laabh and Oyzterbay. It intends to increase the number of Shubh stores to 400 and Laabh and Oyzterbay up to 150 each country wide over the next five years.
Understanding Short Term Trading
Before I begin, this blog is not for intraday traders. My definition of short term implies duration of around 2 to 3 months.
Short Term stock picking is no rocket science, but rather a visual interpretation of technical charts. A basic moving average on a time frame chart will show the direction of the securities movement.
Moving averages is a mathematical results calculated by averaging a number of past data points. Moving averages (MA) in it's basic form is calculated by taking the arithmetic mean of a given set of values on a rolling window of timeframe. Once the value of MA has been calculated, they are plotted onto a chart and then connected to create a moving average line. Typical moving averages used for short term trading are 50 MA and 100 MA.
Types of Moving Averages
1) Simple Moving Average (SMA)
SMA is calculated by taking the arithmetic mean of a given set of values on a rolling window of timeframe. The usefulness of the SMA is limited because each point in the data series is weighted the same, regardless of where it occurs in the sequence. Critics argue that the most recent data is more significant than the older data and should have a greater influence on the final result.
2) Exponential Moving Average (EMA)
EMA overcomes the limits of SMA, where more weight is given to the recent prices in an attempt to make it more responsive to new information. When calculating the first point of the EMA, we may notice that there is no value available to use as the previous EMA. This small problem can be solved by starting the calculation with a simple moving average and continuing on with calculating the EMA.
The primary functions of a moving average is to identify trends and reversals, measure the strength of an asset's momentum and determine potential areas where an asset will find support or resistance. Moving averages are lagging indicator, which means they do not predict new trend, but confirm trends once they have been established.
A stock is deemed to be in an uptrend when the price is above a moving average and the average is sloping upward. Conversely, a trader will use a price below a downward sloping average to confirm a downtrend. Many traders will only consider holding a long position in an asset when the price is trading above a moving average.
In general, short-term momentum can be gauged by looking at moving averages that focus on time periods of 50 days or less. Looking at moving averages that are created with a period of 50 to 100 days is generally regarded as a good measure of medium-term momentum. Finally, any moving average that uses 100 days or more in the calculation can be used as a measure of long-term momentum.
Support, resistence and stoploss can be infered by referring the closet MA below or above the market price. The other factor that is used in short term momentum is the trading volume. The moving averages along with the trading volume can provide a better insight to short term movement.
Markets are moved by their largest participants - I believe this is the single most important principle in short-term trading. Accordingly, I track the presence of large traders by determining how much volume is in the market and how that compares to average. Because volume correlates very highly with volatility, the market's relative volume helps you determine the amount of movement likely at any given time frame--and it helps you handicap the odds of trending vs. remaining slow and range bound.
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