Small-cap stock below ₹50: Rushil Decor share price jumps 10% from intraday low; here’s why

Shares of Rushil Decor rebounded sharply by 10% from their intraday low to ₹39 per share on Monday, November 4 after the company announced an optimistic 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.

The Jumbo Laminate Project in Gandhinagar is a key initiative aimed at meeting the rising demand for thicker decorative laminates. Despite temporary project delays due to supply chain disruptions and weather challenges, the Gandhinagar facility is on track to begin operations by Q4 FY25, the company said.

This facility is expected to produce 2.8 million sheets annually, strengthening Rushil Decor’s foothold in the growing jumbo laminate market. The company conservatively estimates that the project will generate revenue of ₹60 to ₹80 crore, with an EBITDA margin of 14% to 16%. Additionally, the company estimates the project's internal rate of return (IRR) to be between 10% and 12%, with an equity IRR projected at 14% to 16%.

Primarily targeting export markets, including the USA and Europe, these jumbo-sized laminates mark an expansion into high-demand regions. Furthermore, Rushil Decor has entered the plywood segment to provide a full range of wood panel products for the Indian market, allowing for cross-selling opportunities across its product line, as per the company's today's regulatory filing.

The company has an annual capacity of 3,30,000 CBM MDF and 3.49 million laminates, serving customers in over 54 countries.

Commenting on the outlook, Managing Director Rushil Thakkar said, “With strategic expansions, the Jumbo Laminate Project’s imminent launch, and growing international demand, Rushil Decor is positioned to deliver sustained growth and value creation in FY2026. Our focus on market-driven initiatives, expanding capacity, and fostering long-term sustainability remains at the core of our mission."

The company’s commitment to excellence in product quality, market expansion, and sustainable growth serves as the foundation for its long-term commitment to stakeholders as it pursues new growth prospects in the dynamic MDF, laminates, and plywood markets, Rushil further added.

Meanwhile, the company's shares have been trading on an ex-split basis with a 1:10 ratio since August 09, 2024.

Healthy numbers in Q2

In Q2 FY2025, Rushil Decor reported revenue of ₹229 crore, reflecting a YoY growth of 12.6% and a 7.9% increase in PAT at ₹12 crore. Improved realisations in MDF board export markets helped the company to report a healthy set of numbers for the September quarter.

The MDF division continued to drive growth, posting a revenue increase of 14.8%, with value-added products now contributing 54% of total MDF board revenue. During the quarter, the company also expanded its market reach by adding 65 new distributors and 105 new dealers, further strengthening its market presence.

To expand its international footprint, it has established a wholly-owned subsidiary in Singapore dedicated to laminates, allowing it to target the Southeast Asian market more effectively.

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