10:1 stock split & FIIs increase stake: Multibagger penny stock under Rs 40 to keep under the radar; Board allots 5,00,000 shares to a non-promoter!
The stock is up by 30 per cent in just 1 year and gave multibagger returns of 880 per cent in a decade.
Today, the shares of Rushil Decor Ltd gained 2.35 per cent to Rs 37.40 per share from its previous closing of Rs 36.54 per share. The stock’s 52-week high is Rs 45.50 and its 52-week low is Rs 27.
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 company informed that one allottee has exercised their option to convert 5,00,000 convertible warrants into 5,00,000 equity shares. The Fund-Raising Committee of the Board of Directors has approved this allotment, resulting in the issuance of 5,00,000 equity shares at a premium of Rs 28.70 per share to a non-promoter (Brijendra Kumar). The total subscription amount received is Rs 1,11,37,500. Post-allotment, the non-promoter shareholding stands at 45.19 per cent.
Earlier, The Fundraising committee of the Company approved the allotment of 9,00,000 equity shares to Wow Investments & Ten Eighty Investments on August 21, 2024, in exchange for the remaining 75 per cent of the subscription amount for 9,00,000 convertible warrants previously allotted. This brings the total equity shares allotted through warrant conversions to 17,20,000.
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.
DSIJ’s 'Tiny Treasure' service recommends researched Small-Cap stocks with Inherent Growth Potential. If this interests you, do download the service details here.
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 Rs 994 crore. The stock is up by 30 per cent in just 1 year and gave multibagger returns of 880 per cent in a decade.
Disclaimer: The article is for informational purposes only and not investment advice.