Investment Imperative is bullish on Rushil Decor Limited has recommended Buy rating on the stock with a target price of Rs 1173 in its research report dated March 13, 2018.
Investment Imperative's research report on Rushil Decor Limited
Rushil Decor Limited is betting on aggressive expansion in medium density fibreboard or MDF space and green product wood polymer composite or WPC boards in the current and upcoming years. It is targeting almost three times capacity addition of 800 cbm/ day from the current capacity of 300 cbm/ day. Rushil has also started WPC board plant in January 2018 which is environment friendly and preferred option for green buildings.
OutlookWe are expecting the new plant to contribute revenues of Rs.200 crores by FY21 and Rs.340 crores at its peak utilization by FY23 at current market prices. The facility, low cost of funding and economies of scale should help the company garner EBITDA margins of ~25% and PAT margins of ~8.5%.
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