1:10 stock split announced & Promoters bought 40,12,867 shares: Heavy buying in this multibagger stock; Spurt in volume by more than 2.32 times on BSE

The stock gave multibagger returns of over 760 per cent in a decade.

Today, the shares of Rushil Decor Ltd surged 1.69 per cent to Rs 312.15 per share from its previous closing of Rs 306.95 with an intraday high of Rs 319.95 and an intraday low of Rs 303.15. The stock’s 52-week high is Rs 406.7 and its 52-week low is Rs 243.95. The shares of the company saw a spurt in volume by more than 2.32 times on BSE.  

Rushil Decor Ltd is primarily engaged in the manufacturing and sale of laminate sheets, medium-density fibre boards, prelaminated medium-density fibre board boards, polyvinyl chloride (PVC) boards and particle boards.

The Board of Directors of the company announced a stock split of shares in the ratio 1:10 i.e., existing 1 equity share having a face value of Rs 10 each, into 10 equity shares having a face value of Re 1 each, fully paid-up. The Expected time of stock split completion will be within 2 to 3 months.

The Board also allocated 65,000 equity shares of face value Rs 10 each, under the conversion of 65,000 warrants, against receipt of the balance subscription amount of Rs 297 per warrant (i.e. 75 per cent of the issue price), aggregating to Rs 1,44,78,750 to 2 non-promoters.

Rushil Decor, a leading MDF manufacturer in India, is capitalizing on the multi-billion-dollar growth potential of the global wood panel market by strategically expanding into South America. This move comes as the company experiences strong financial performance, with a 9 per cent year-over-year growth and export revenue contributing significantly to their overall income. They see South America as a key market to fulfil the high demand for MDF and laminates, leveraging their expertise in both product lines. This expansion aligns with their vision of reaching Rs 2,500 crore in annual revenue by 2029, allowing them to further solidify their global presence while providing high-quality and sustainable products to new customers. Their participation in Interzum Bogota, an industry fair focused on sustainability and innovation, further emphasizes their commitment to these values.

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Quarterly Results: The net sales increased by 9.1 per cent to Rs 233.43 crore and operating profit increased by 9.1 per cent to Rs 31.14 crore in Q4FY24 compared to Q4FY23. The company reported a net profit of Rs 9 crore in Q4FY24 compared to a net profit of Rs 13.56 crore in Q4FY23.

Annual results: The net sales increased by 0.7 per cent to Rs 843.97 crore in FY24 compared to FY23. The company reported an operating profit of Rs 122.79 crore and a net profit of Rs 43.11 crore in FY24 compared to an operating profit of Rs 150.77 crore and a net profit of Rs 77.67 crore in FY23.

The promoters bought 40,12,867 shares and increased their stake to 56.39 per cent in March 2024 compared to 55.03 in March 2023. The company falls under the BSE Small-Cap Index and has a market cap of Rs 828 crore. The stock gave multibagger returns of over 760 per cent in a decade.

Disclaimer: The article is for informational purposes only and not investment advice.