Penny Stock Under Rs 50 in Focus as Company Makes Strategic Leap with a New Wholly Owned Subsidiary in Singapore, Enhancing Its Presence in Southeast Asia

This subsidiary will strengthen its commitment to sustainable and innovative solutions for clients across Southeast Asia.

Rushil Decor Limited (BSE: 533470, NSE: RUSHIL), announced the incorporation of a wholly owned subsidiary in Singapore in the name of “Rushil Decor Pte. Ltd.” This move aims to strengthen company’s presence in the global market and expand its reach into Southeast Asia Region. Rushil Decor Pte. Ltd. will focus on the import, export and distribution of a wide range products, including laminated sheets, MDF boards, HDF boards and other allied products. This new entity will cater to the increasing demand for high-quality and sustainable wood panel products and enhance Rushil Decor's service capabilities in Singapore and the surrounding markets.

The establishment of this subsidiary reflects Rushil Decor’s proactive steps to capture growth opportunities in the dynamic Southeast Asian market. With Singapore serving as a central hub, the subsidiary is set to support streamlined distribution, enhance customer service capabilities and strengthen the Company’s brand presence across the region. This move will allow the company to optimize its supply chain, providing highquality laminates to clients in a timely and cost-effective manner. The new subsidiary is expected to further increase revenue and profitability by enabling Rushil Decor to reach untapped markets and develop strong local partnerships. Rushil Decor Pte Ltd. aims to serve customers primarily in Thailand, Laos, Philippines, Cambodia, Vietnam, Malaysia, Indonesia, Myanmar, Brunei and Papua New Guinea. The subsidiary's main supplier will be Rushil Decor Ltd. from India.

Mr Rushil K. Thakkar is one of the Directors of the subsidiary. This subsidiary will strengthen its commitment to sustainable and innovative solutions for clients across Southeast Asia. This expansion will not only broaden market access but also lays the foundation for exploring further opportunities in this region.

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.