Multibagger small-cap stock in green after company’s promoter 19,85,925 pledged shares were revoked on March 28

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.

In the stock market, a company's promoters may use their shares as collateral for a loan from a lending institution. These collateralized shares are called "pledged shares." When the company's financial health improves, the promoters can repay the loan and regain control of the pledged shares. This process of reclaiming the shares is called "pledge revocation." Revocation of pledged shares is generally viewed as a positive sign for the company's financial standing, as it indicates the company has the resources to meet its debt obligations and potentially invest in future growth. Once the loan is repaid, the system automatically transfers the ownership of the shares back to the promoter's demat account, allowing them to sell or hold the shares freely.

As per information on the Bombay Stock Exchange (BSE), the promoter of Rushil Decor Limited (RDL), Krupesh Ghanshyambhai Thakkar’s 100 per cent pledged shares were revoked. Securities held pre-transaction was 41,05,362 shares (15.47 per cent). Securities held post-transaction was 41,05,362 shares (15.47 per cent). A total of 19,85,925 equity shares worth Rs 58,64,43,653 were revoked.

Earlier, Rushil Decor Ltd, a leader in sustainable building materials, has expanded its product portfolio by incorporating a new subsidiary, Rushil Modala Ply Limited, which will focus on eco-friendly plywood made with agroforestry-sourced wood. This majority-owned venture strengthens Rushil Decor's commitment to green practices and allows them to offer a wider range of home decor products, including laminates, MDF boards, PVC, wooden flooring, and now eco-friendly plywood, all while aiming for significant revenue and EBITDA growth by FY25-26.

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. Today, shares of Rushil Décor Ltd gained over 3 per cent to an intraday high of Rs 304.70 per share from its previous closing of Rs 295.30 per share.

 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 740 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.