The shares of the leading decorative product manufacturer gained 1.8 percent to an intraday high of ₹341.95 per share on Thursday after the board approved the incorporation of a subsidiary in the Plywood business through a joint venture.
At 11:25 a.m., Rushil Decor Ltd. shares were trading at ₹ 338 per share,up 0.61 percent from the previous close price on the Bombay Stock Exchange. The company has a market value of ₹ 897 crore.
The Board of Directors of the company approved the incorporation of a Subsidiary Company through a Joint Venture agreement with Modala Panels and Boards, for the purpose of manufacturing plywood and other allied products
In the proposed new joint venture, Rushil Decor and Modala Group are expected to have a shareholding of 51% and 49%, respectively, with Rushil Decor holding the majority stake. The company reported in its exchange filing.
The company’s operational revenue has increased by 1.5 percent year on year from ₹210 crore in Q3FY23 to ₹213 crore in Q3FY24, while net profit has increased by 10 percent from ₹ 10 crore to ₹11 crore. The company’s total debt has reduced from ₹413.52 crore in FY22 to ₹281.96 crore in FY23.
Rushil Decor Ltd is primarily engaged in the manufacturing and sale of Laminate Sheets, medium-density fiberboards, Preliminary Medium Density Fiberboard boards, Polyvinyl chloride (PVC) boards, and Particle boards. The company has more than 1200 SKU’s in their portfolio.
Rushil Decor is the second-largest manufacturer of Medium-Density Fibre (MDF) boards and one of the largest players in organised laminates. The company caters to international markets such as Europe, the USA, Australia, and New Zealand. The company anticipates achieving a revenue of ₹60-₹80 crores by FY 25 from the lamination business segment, with a targeted margin of 12-15%
In the recent financial year, the company reported a strong profitability ratio, such as a return on equity of 21.4 percent and a return on capital employed of 16.2 percent. Rushil Decor Ltd shares have gained 25 percent in the last six months and 14 percent in a year.
Written by Omkar Chitnis
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
