Shares of this microcap company surged 8 percent in Thursday’s trading session after announcing a venture into the Eco-Friendly Plywood Segment. In six months, the shares have delivered 35 percent returns to its shareholders.
With a market capitalisation of Rs. 965 crores, the shares of Rushil Decor Ltd started Thursday’s trading session positively at Rs. 336.50 compared to its previous close of Rs. 335.95. During the trading session, the shares hit a high of Rs. 365, gaining around 8 percent and closed the day at Rs. 360 apiece.
Such a bullish movement in the share price was observed after the company announced its venture into the Eco-Friendly Plywood Segment, with this the company targets additional Rs. 300 crores turnover from Ply and Laminate projects in FY25-26.
Furthermore, the company upon receiving prior approvals, will form a joint venture with an existing plant in Chikmanglur, Karnataka and its promoters to establish Rush Modala Ply Limited, a 51 percent subsidiary of Rushil Decor. The proposed new subsidiary company will have an initial investment of upto Rs. 20 crores in the proportion of 51:49 by RDL and Joint venture partners respectively.
In addition, to the eco-friendly plywood venture, Rushil Decor plans to manufacture jumbo laminates, a value-added product, at a new plant, scheduled to start commercial production in H1’25, which has the potential to generate additional sales of approximately Rs. 150 crores in FY 2025-26 with an EBITDA margin in the mid to high teens.
Coming onto the company’s financial statements, the revenue increased marginally by 4 percent from Rs. 205 crores during the September quarter to Rs. 213 crores in the December quarter. On the other hand, the net profits remained constant at Rs. 11 crores during both quarters.
The company owns 6 manufacturing facilities across Gujarat, Karnataka and Andhra Pradesh. Moreover, they plan for expansion in laminates with a project cost of Rs. 90 crores and also aim to augment Greenfield’s capex to cater to premium export markets.
Moreover, the company caters to international markets such as Europe, the USA, Australia, and New Zealand and anticipates achieving a revenue of Rs. 60 to Rs. 80 crores by FY 25 from the lamination business segment, with a targeted margin of 12 to 15 percent.
Headquartered in Gujarat, Rushil Decor was incorporated in 1993. The company is primarily engaged in the manufacturing and sale of Laminate Sheets, Medium Density Fibre Board, Prelaminated Medium Density Fibre Board boards, Polyvinyl Chloride (PVC) Board and Particle Board.
Written By Vaibhav Patil
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