Shares of Rushil Decor Ltd experienced strong upward momentum, rising 6.5% on Monday to close at Rs 34.87, compared to the previous day’s close of Rs 32.74. The stock reached an intraday high of Rs 34.87 and a low of Rs 33.25, indicating improved investor demand. Currently, Rushil Decor’s stock is 22.35% higher than its 52-week low of Rs 27, and the company boasts a market capitalization of Rs 922 crores, showcasing an impressive 880% growth over the past decade.
Recently, Rushil Decor informed that 9,00,000 convertible warrants were converted into equity shares, with an equal number of shares allocated to two allottees. Each share has a face value of Rs 1, and the exercise price was set at Rs 28.70 per share. This conversion is expected to increase non-promoter holding in the company to 45.37%. The company’s total market share is currently at 45.50%, bolstered by a 52-week high price point.
In terms of financial performance, Rushil Decor reported net sales of Rs 223.50 crore for Q1 FY25, marking a 16% year-on-year increase. Their net profit grew by 1% to Rs 12.31 crore. The company maintains a net debt-to-equity ratio of 0.45, with basic and diluted EPS at Rs 4.61 and Rs 4.06, respectively. During the quarter, Rushil Decor expanded its distribution network by adding 56 new dealers and 58 new distributors.
Operationally, the company recorded an EBITDA of Rs 21 crore in its medium-density fiber (MDF) board segment, achieving a margin of 12.4%. The laminates segment contributed Rs 4.3 crore to EBITDA with a 9.1% margin. Capacity utilization was strong in both segments, reaching 91% for MDF and 88% for laminates. Notably, the company saw greater profits from exports compared to domestic sales, contributing to enhanced profitability.
For FY24, Rushil Decor’s total sales saw a marginal increase of 0.7%, totaling Rs 843.97 crore. However, operating profit decreased to Rs 122.79 crore, and net profit fell to Rs 43.11 crore, down from Rs 150.77 crore and Rs 77.67 crore, respectively, in FY23. Despite these challenges, Rushil Decor continues to focus on manufacturing and selling laminate sheets, medium-density fiber boards, pre-laminated MDF boards, PVC boards, and particle boards, solidifying its position as a leading player in the industry.
Disclaimer: This information is provided for informational purposes only and should not be considered financial or investment advice. The performance of Rushil Decor Ltd shares, including past performance, does not guarantee future results. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions. The author of this content is not responsible for any financial losses or gains that may occur as a result of relying on this information.
Leave a Reply