FIIs bought 59,387 shares & Rs 1,200 crore revenue aim: Multibagger small-cap stock in green after the company incorporated a new subsidiary; details inside!

The stock is up by 50 per cent from its 52-week low of Rs 202.37 per share and gave multibagger returns of 730 per cent in a decade.

Rushil Decor Limited (RDL), a leader in sustainable building materials, has announced a significant step in its growth strategy by incorporating a new majority-owned subsidiary, Rushil Modala Ply Limited. This new venture, formed through a joint venture agreement with a partner, will focus on the manufacturing and sale of eco-friendly plywood produced using wood grown through agroforestry. With an investment of Rs 51,000, RDL will hold a 51 per cent stake in Rushil Modala Ply, ensuring arm's length pricing and fair market value. This strategic move expands RDL's product portfolio within the home decor segment, allowing them to cater to a wider range of customer needs with a one-stop shop approach that now includes laminates, MDF boards, PVC, wooden flooring, and eco-friendly plywood, all aligned with the company's commitment to green building practices.

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 1,200 crore in sales and Rs 200 crore in EBITDA by FY25-26.

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 December quarter of 2024, FIIs bought 59,387 shares and increased their stake to 1.17 per cent from 0.95 per cent. The shares of the company have an ROE of 25.27 per cent. The stock is up by 50 per cent from its 52-week low of Rs 202.37 per share and gave multibagger returns of 730 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.