#RUSHIL Rushil Decor Ltd
Had gone through the Q1FY23 concall of the company, and the management is exceedingly bullish on the future growth aspects. Truly it was more than a treat to hear them out
rushil.com
Contd.
Had gone through the Q1FY23 concall of the company, and the management is exceedingly bullish on the future growth aspects. Truly it was more than a treat to hear them out
rushil.com
Contd.
Concall Highlights :
Over the quarter the company registered a stellar performance wherein the net profit grew 80% QOQ & the company posted a net profit of 27 cr in Q1, compared to the loss of 8 cr posted YOY
EBITDA margins at 23% & PAT were at record high over the quarter
Over the quarter the company registered a stellar performance wherein the net profit grew 80% QOQ & the company posted a net profit of 27 cr in Q1, compared to the loss of 8 cr posted YOY
EBITDA margins at 23% & PAT were at record high over the quarter
Company has reduced 15 cr debt in Q1 and debt will be substantially reduced going forward through internal accruals and rights issue
Margins will be sustainable at 20-25% similar to what they did in Q1. Co will not be subject to any margin pressure going forward and they have implemented resin saving technology to reduce cost
The export demand in Africa & Gulf countries have been exceptionally good.
For the full year capacity utilisation will be more than 80% (similar to Q1) and if the demand increases, they will proportionally increase the capacity utilisation further
For the full year capacity utilisation will be more than 80% (similar to Q1) and if the demand increases, they will proportionally increase the capacity utilisation further
A very positive point as per me is that margin pressure is almost negligible and the Rushil decor is anticipating a very healthy demand for the full year
No new capacities are coming by its competitors in South for the next 2 years, where Rushil Decor is having a dominant position
MDF segment to grow at CAGR of 15-20% annually
And the demand is very healthy and resilient
And the demand is very healthy and resilient
Conclusion -
It is extremely rare to find such a branded company at such seemingly low valuations
Available at a forward PE of just 9
Huge growth in earnings,
Margins are sustainable and Co. is witnessing healthy demand
A big PE re-rating is imminent !
#RushilDecor
It is extremely rare to find such a branded company at such seemingly low valuations
Available at a forward PE of just 9
Huge growth in earnings,
Margins are sustainable and Co. is witnessing healthy demand
A big PE re-rating is imminent !
#RushilDecor
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