Rs 12,00,00,00,000 revenue target by FY26: This multibagger small-cap company ventures into the eco-friendly plywood segment – details inside
The stock is up by 86.5 per cent from its 52-week low of Rs 202.37 per share and gave multibagger returns of 140 per cent in 3 years & a whopping 900 per cent in a decade.
Rushil Decor Limited ("RDL") (BSE: 533470, NSE: RUSHIL), a global leader in modern interior infrastructure and eco-friendly wood panels, announces its expansion into the eco-friendly plywood segment. The company, known for its sustainable MDF and laminates, is committed to environmentally responsible practices and aims to revolutionize the plywood industry with its latest venture.
The eco-friendly plywood, made from wood sourced through agroforestry, is a sustainable alternative that promotes environmental conservation. Agroforestry utilizes wasteland for growing wood trees, providing a renewable source of wood while preventing deforestation. Rushil Decor's commitment to green practices extends to its integrated green ecology approach, ensuring a positive impact on the environment.
Rushil Decor, upon receiving prior approvals, will form a joint venture with an existing plant in Chikmanglur, Karnataka and its promoters to establish Rush ii Modala Ply Limited, a 51 % subsidiary of Rushil Decor. The proposed new subsidiary company will have an initial investment of upto INR 20 crores in the proportion of 51 :49 by RDL and Joint venture partner respectively. With this strategic venture, Rushil has solidified its position as a comprehensive solution provider in the home decor segment by catering to existing customers the multiple products, boasting an extensive product portfolio that now includes:
1. Laminates
2. MDF Boards
3. PVC
4. Wooden Flooring
5. Plywood
Rushil Decor is bullish on its eco-friendly plywood venture and jumbo laminate production, expecting a combined revenue boost of Rs 300 crore and Rs 40 crore in EBITDA by FY25-26. Leveraging its existing network, the company aims to quickly launch eco-plywood and capitalize on high-margin exports with its new laminate sizes and eco-friendly product certifications. This dual strategy positions Rushil Decor to achieve its target of Rs 1200 crore in sales and Rs 200 crore in EBITDA by FY25-26.
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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.
The company falls under the BSE Small-cap Index and has a market cap of Rs 976 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 86.5 per cent from its 52-week low of Rs 202.37 per share and gave multibagger returns of 140 per cent in 3 years & a whopping 900 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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