10:1 stock split & FIIs increase stake: Multibagger penny stock under Rs 40 in green as Board allots 9,00,000 shares to Wow Investments & Ten Eighty Investments

The stock is up by 45 per cent in just 1 year and gave multibagger returns of 925 per cent in a decade.

Today, the shares of Rushil Decor Ltd gained 3.13 per cent to Rs 39.60 per share from its previous closing of Rs 38.40 per share. The stock’s 52-week high is Rs 45.50 and its 52-week low is Rs 26.77.

The shares of the company are to trade ex-stock split of shares in the ratio 1:10 on Friday, August 09, 2024, 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 Fundraising committee of the Board of Directors of the Company has, at its meeting held on August 21, 2024, considered and approved the allotment of 9,00,000 equity shares of the company of face value of Rs 1 each, at a premium of Rs 28.7 per share (post effect of the stock split of shares), pursuant to the exercise and conversion of 9,00,000 convertible warrants against receipt of the balance subscription amount (i.e. 75 per cent of the issue price) to the allottees (Wow Investments & Ten Eighty Investments). Two allottees have deposited Rs 2,00,47,500 in aggregate towards their respective subscription and have exercised their right to convert a total of 9,00,000 warrants into 9,00,000 equity shares. This is in furtherance of the intimation given on December 23, 2023, wherein the company had allotted 41,30,000 convertible warrants to a total of 38 allottees on a preferential basis. To date, the company has allotted 8,10,000 equity shares by conversion of 8,10,000 warrants to 16 allottees. The allottees must pay the remaining 75 per cent amount to exercise their conversion rights.

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 company reported a 16 per cent increase in net sales to Rs 223.50 crore and a 1 per cent rise in net profit to Rs 12.31 crore for Q1FY25 compared to the same period last year. Net Debt to Shareholder Equity stood at 0.45x with Basic and Diluted EPS at Rs 4.61 and Rs 4.06 respectively. The company expanded its distribution network by adding 56 new dealers and 58 new distributors. The MDF board segment achieved an EBITDA of Rs 21 crore with a 12.4 per cent margin, while laminates contributed Rs 4.3 crore to EBITDA with a 9.1 per cent margin. Both segments optimized capacity utilization, with MDF at 91 per cent and laminates at 88 per cent and realised higher export prices than domestic sales.

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.

In June 2024, FIIs increased their stake to 2.15 per cent compared to 1.17 per cent in March 2024. The company falls under the BSE Small-cap Index and has a market cap of over Rs 1,000 crore. The stock is up by 45 per cent in just 1 year and gave multibagger returns of 925 per cent in a decade.

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

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