Plywood penny stock under Rs 50 jumps after planning to complete phase 2 of its state-of-the-art jumbo laminate plant by Q3FY26
The company has a market cap of Rs 890 crore and the stock is up by 69 per cent from its 52-week low of Rs 18.70 per share.
On Tuesday, the shares of Rushil Decor Ltd gained 8.9 per cent to Rs 31.60 per share from its previous closing of Rs 29.01 per share. The stock’s 52-week high is Rs 45.50 per share and its 52-week low is Rs 18.70 per share. The shares of the company saw a spurt in volume by more than 3 times on the BSE.
Rushil Décor Limited, a prominent Indian manufacturer of MDF boards, laminates, and plywood, has revealed strong financial outcomes for FY2025 and outlined an ambitious expansion strategy aimed at solidifying its market position. The company posted a consolidated revenue of Rs 8,979 million, representing a 6.4 per cent year-on-year increase, and a Profit After Tax (PAT) of Rs 479 million, an 11.1 per cent rise from the previous fiscal year. This impressive performance was underpinned by robust export growth, enhanced operational efficiency, and a burgeoning portfolio of high-value products. Key highlights for FY2025 include the MDF Division's revenue of Rs 6,637 million with export volumes surging 32.4 per cent year-on-year, and the Laminates Division's revenue of Rs 1,989 million, supported by consistent export demand. Furthermore, the company demonstrated strong financial discipline, improving its Net Debt-to-Equity ratio to 0.41x, with capacity utilisation standing at 87 per cent for MDF and 86 per cent for Laminates.
Rushil Décor is poised to significantly bolster its manufacturing capabilities with the scheduled completion of Phase 2 of its state-of-the-art Jumbo Laminate manufacturing facility in Gandhinagar, Gujarat, by Q3 FY26. This brownfield expansion, encompassing both Phase 1 and Phase 2, is projected to add an impressive 2.8 million sheets per annum to its production capacity (based on a 1mm sheet of single-sided decorative laminate). This strategic expansion is specifically designed to tap into lucrative international markets, including the USA and Europe, and is anticipated to positively contribute to both the top and bottom lines in FY2025- 26.
Collectively, the installed capacity of both Phase 1 and Phase 2 of the Jumbo Laminate plant is estimated to generate additional annual revenues of approximately Rs 300 Crores, accompanied by an attractive EBITDA margin of around 11 per cent. This significant investment underscores Rushil Décor's broader objective of expanding its global footprint and effectively addressing the escalating demand for premium, value-added laminates. The company has already demonstrated early success by securing initial export orders for 15 per cent of Phase 1 capacity, indicating a strong trajectory for ramping up production in the forthcoming quarters and reinforcing its position as a global player in the decorative surfacing industry.
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About the Company
Established in 1993, Rushil Décor Limited is a leader in the Decorative High Pressure Laminates market in India with footprints in over 56 countries. The company manufactures and distributes laminates and MDF panel boards under its flagship brand, VIR. Rushil Décor’s portfolio consists of an extensive range of decorative laminates for home and commercial use. The company has six state-of-the-art manufacturing facilities with an annual capacity of 3,30,000 CBM MDF and 3.49 million laminates. Rushil Décor is an ISO 9001:2000 certified organisation with a 3 Star Export House status. The company has over 4,600 points of sale and over 700 distributors supporting it in the market.
The company has a market cap of Rs 890 crore and the stock is up by 69 per cent from its 52-week low of Rs 18.70 per share.
Disclaimer: The article is for informational purposes only and not investment advice.