Multibagger ply manufacturing stock with PEG ratio below 1: Board likely to announce stock split and dividend!

The stock is up by 35 per cent from its 52-week low of Rs 243.95 per share and gave multibagger returns of 800 per cent in a decade.

Today, the shares of Rushil Decor Ltd gained 4.51 per cent to an intraday high of Rs 344.50 per share from its previous closing of Rs 330.05 per share. The stock’s 52-week high is Rs 406.7 and its 52-week low is Rs 243.95.

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.

Rushil Decor Limited is holding a meeting of its Board of Directors on Thursday, May 09, 2024, to discuss and approve the audited financial results for the fiscal year ended March 31st, 2024 and recommend a dividend on the company's equity shares for the same period.

Additionally, the Board of Directors of the company is scheduled to hold a meeting on Friday, May 24, 2024, inter-alia, to consider and approve the proposal for sub-division / split of existing equity shares of the company, having a Face Value of Rs 10 each, fully paid up, in such manner as may be determined by the Board of Directors, subject to the approval of Shareholders of the Company and/ or any other regulatory/ statutory approvals (if any).

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Furthermore, recent revocation of 19,85,925 equity shares held by the promoter Krupesh Ghanshyambhai Thakkar by the Bombay Stock Exchange (BSE), Rushil Decor Limited remains steadfast in its pursuit of advancing sustainable building materials. The company is extending its influence in this sector with the establishment of Rushil Modala Ply Limited, a subsidiary dedicated to the production of environmentally friendly plywood sourced through agroforestry methods. This strategic move not only underscores Rushil Decor's dedication to eco-conscious practices but also broadens its product portfolio to include laminates, MDF boards, PVC, wooden flooring, and now, eco-friendly plywood. Anticipating robust revenue and EBITDA growth by the fiscal year 2025-2026, this expansion demonstrates Rushil Decor's commitment to meet evolving market demands while maintaining its environmental ethos.

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 887 crore. The shares of the company have an ROE of 25.27 per cent. The stock is up by 35 per cent from its 52-week low of Rs 243.95 per share and gave multibagger returns of 800 per cent in a decade.

The PEG ratio, unique among valuation metrics, considers a company's earnings growth potential by dividing the P/E ratio (stock price divided by earnings per share) by the expected earnings growth rate (often over five years), providing a more nuanced picture of a stock's value. The PEG ratio of this stock stands at 0.91.

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