68 per cent up from its 52-week low: This small-cap company incorporates a subsidiary company by entering into a joint venture agreement with Modala Group
The stock is up by 68 per cent from its 52-week low of Rs 202.37 per share and gave multibagger returns of 120 per cent in 3 years & a whopping 800 per cent in a decade.
Today, shares of Rushil Décor Ltd plunged surged 1.85 per cent to an intraday high of Rs 341.60 per share from its previous closing of Rs 335.40 per share. The stock’s 52-week high is Rs 406.70 and its 52-week low is Rs 202.37.
The Board of Directors of Rushil Decor Limited (RDL) has approved the incorporation of a new subsidiary company through a joint venture with Modala Panels and Boards. Both parties will hold equity shares in the new company: 51 per cent for RDL and 49 per cent for Modala Group. The joint venture aims to manufacture plywood and other allied products. Each party will have the right to appoint two directors to the board, with RDL holding the chairperson position.
Voting rights will be proportionate to shareholding, and standard clauses like deadlock resolution and major decision requirements will be included in the agreement. Importantly, Modala is not related to RDL's promoter group, and the transaction adheres to arm's length principles. Equity shares will be issued to both parties at a face value to be determined later. This joint venture represents a significant move for RDL, expanding its operations and leveraging Modala's expertise in the plywood industry.
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.
Quarterly Results: The total income increased by 1.3 per cent to Rs 213.47 crore, PBT increased by 13.4 per cent to Rs 15.21 crore and PAT increased by 11 per cent to Rs 11.36 crore in Q3FY24 compared to Q3FY23.
Nine-month results: The company reported a total income of Rs 610.54 crore, PBT of Rs 45.4 crore and PAT of Rs 34.11 crore in 9MFY24 compared to Rs 624.48 crore, Rs 85.37 crore and Rs 64.11 crore respectively in 9MFY23.
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Building on its reputation for quality and design, Rushil Decor has achieved coveted 3-Star Export House status thanks to exceptional export performance, unlocking benefits like streamlined customs and accelerating them towards their ambitious Rs 500 crore export target within four years. Led by Mr Krupeshbhai G. Thakkar, they aim to become a major player in the laminates market, tripling sales by FY26 through capacity expansion, profit margin focus, and AI-powered marketing, solidifying their position for continued growth and success.
The company falls under the BSE Small-cap Index and has a market cap of Rs 890 crore. In the September quarter, FIIs have increased their stake from 0.92 per cent to 0.95 per cent. The shares of the company have an ROE of 25.27 per cent. The stock is up by 68 per cent from its 52-week low of Rs 202.37 per share and gave multibagger returns of 120 per cent in 3 years & a whopping 800 per cent in a decade. Investors should keep an eye on this small-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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