Penny Stock Under Rs 50 in Focus as Company Aims for Strong Growth in FY 2026, Leveraging the New Jumbo Size Laminate and Plywood Segments
The project’s IRR is forecasted at 10 per cent to 12 per cent, with an equity IRR of 14 per cent to 16 per cent.
Rushil Decor Limited (BSE: 533470. NSE: RUSHIL), announces a strong positive outlook for the upcoming financial year, with a focus on the strategic roll-out of its Jumbo Laminate Project and expansion into the plywood market. These projects reflect the company’s commitment to broadening its product offerings and exploring growth potential within new market segments.
Jumbo Laminate Project – Expanding Product Range and Market Reach:
The Jumbo Laminate Project in Gandhinagar is a pivotal initiative enabling Rushil Decor to tap into the growing demand for thicker-format decorative laminates. Despite temporary delays in the project due to supply chain challenges and inclement weather, the Gandhinagar facility is now on track to commence operations by Q4FY25. This facility is projected to produce 2.8 million sheets annually, strengthening the company’s position in the expanding jumbo laminate market. In its first full year of operations, the Jumbo Laminate Plant is expected to generate Rs 60 to 80 crore in revenue on a conservative basis, with an EBITDA margin of 14 per cent to 16 per cent. The project’s IRR is forecasted at 10 per cent to 12 per cent, with an equity IRR of 14 per cent to 16 per cent.
This new facility is not only an expansion of Rushil Decor’s production capabilities but also a testament to its vision of meeting market needs with quality products. The jumbo-sized laminates are aimed primarily at export markets, especially the USA and Europe. To ensure that this new product has an immediate foothold, the company has already started to set up sales and marketing networks. This includes appointing staff and distributors to drive market penetration across Europe and the USA. This strategic initiative will enable Rushil Decor to capture the expanding market demand for jumbo laminate formats.
Strategic Entry into the Plywood Segment:
Rushil Decor’s foray into the plywood segment is a natural progression in its product diversification strategy. Although faced with minor delays, this joint venture is expected to generate revenues of Rs 12 to 14 crore in its initial phase, scaling up to Rs 45 to 50 crore in subsequent years. With EBITDA margins estimated at 9 per cent to 11 per cent. The plywood expansion is focused on offering a complete range of wood panel products to distributors, enabling opportunities for cross-selling across the product line and will focus solely on the Indian market.
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About the Company
Rushil Decor Limited, a global leader in modern interior infrastructure and eco-friendly composite wood panels, has been setting industry benchmarks since its inception in 1993. With a strong focus on innovation and advanced technology, the company operates six state-of-the-art manufacturing plants, boasting an annual capacity of 3,30,000 CBM MDF and 3.49 million laminates. Its diverse product range, including VIR Laminates, MDF boards, HDFWR boards, pre-laminated decorative boards, Modala Ply, PVC, and WPC boards/doors, caters to customers in over 53 countries. Rushil Decor's commitment to quality, design excellence, and customer-centricity, coupled with efficient supply chain management and strategic local plantations, enables it to create smarter spaces and meet global market demands sustainably.
According to Quarterly Results, the net sales increased by 12.6 per cent to Rs 230.40 crore, EBITDA increased by 2.4 per cent to Rs 29.6 crore and net profit increased by 7.90 per cent to Rs 11.4 crore in Q2FY25 compared to Q2FY24. In its half-yearly results, the net sales increased by 14.6 per cent to Rs 455.50 crore and net profit increased by 4.6 per cent to Rs 23.8 crore in H1FY25 compared to H1FY24.
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. Furthermore, shares of the company underwent a 1:10 stock split on August 9, 2024, resulting in each Rs 10 face value share being divided into 10 shares of Re 1 face value shares.
Disclaimer: The article is for informational purposes only and not investment advice.