The share price of this micro-cap firm, which falls under the sector of plywood boards and laminates, saw its shares surge around 2 percent to an intra-day high of Rs 352 apiece after announcing its plans to expand to North America. This expansion aims to help the company reach its goal of Rs 2,500 crores in revenue by FY29 as part of its ambitious vision.
With a market capitalization of Rs 920.33 crores, the shares of Rushil Decor Limited generated a positive return of 21 percent over the past year and 5 percent over the past 6 months.
What happened: According to Rushil Decor Limited’s stock exchange filings, the firm has announced its expansion into the North American market through participation in The International Woodworking Fair (IWF) conducted in Atlanta. This expansion is aimed at achieving its goal of obtaining Rs 2,500 crores in revenue by FY29 and strengthening its global market presence in the laminates and Medium-Density Fiberboard (MDF) markets.
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Financials: Reviewing the financials of Rushil Decor Limited on a year-on-year basis, the revenues increased by 0.71 percent from Rs 838 crores in FY23 to Rs 844 crores in FY24. In the same time frame, the net profits decreased from Rs 78 crores to Rs 43 crores, demonstrating a 45 percent decrease.
Ratios: In terms of return ratios for the year 2024, it has reported a return on equity (ROE) of 7.94 percent and a return on capital employed (ROCE) of 12.05 percent.
Debt profile and D/E ratio: The debt of Rushil Decor Limited significantly reduced by 30 percent from Rs 413.42 crores in 2022 to Rs 286.06 crores in 2024. The current debt to equity of Rushil Limited stands at 0.53 times compared to a debt to equity of 1.44 times in 2022.
Industry overview: As per Precision reports, the global market for Medium-Density Fiberboard (MDF) and laminates is forecasted to reach USD 29.69 billion by 2027, and the global laminate market is expected to reach USD 11.98 billion by 2030.
Product Portfolio: The company’s product portfolio includes VIR Laminates, VIR MDF boards, VIR MAXPRO (HDFWR) boards, VIR Pre-laminated Decorative MDF/HDFWR boards, VIR Ply, VIR PVC, and VIR WPC boards/doors.
Product Addition: Rushil Decor has entered into the manufacturing of plywood at its Chikamaglur Plant in Karnataka through its subsidiary company. The capacity for producing plywood will be 300 boards per day, expanding to 3,000 boards per day.
Shareholding Pattern: As of June 2024, the shareholding pattern of Rushil Decor Limited stood at 55.34 percent for promoters, 42.45 percent for the public, 2.15 percent for foreign institutional investors, and 0.07 percent for domestic institutional investors.
About the Company: Incorporated in 1993, Rushil Decor Ltd. manufactures and sells laminate sheets, Medium-Density Fiberboard (MDF), pre-laminated MDF boards, and Polyvinyl Chloride (PVC) boards.
Written By Zahal
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