Rushil Decor hits 52-week high; zooms 64% in 3 days on heavy volumes

The stock hit a 52-week high of Rs 147, up 18% on the BSE in the intra-day trade today, and surpassed its previous high of Rs 139 touched in November 2019

Shares of Rushil Décor were on a roll and hit a 52-week high of Rs 147, up 18 per cent on the BSE in the intra-day trade, on Thursday on the back of heavy volumes. Stock of the forest products firm has zoomed 64 per cent in the past three trading days in an otherwise volatile sessions. The stock has surpassed its previous high of Rs 139.2 touched on November 26, 2019.

The trading volumes on the counter jumped nearly six-fold as nearly one million shares had changed hands on the NSE and BSE till 01:00 pm. In comparison, the S&P BSE Sensex was up 0.26 per cent at 43,942 points.

Rushil Décor has two main business segments, i.e. MDF (medium density fibre board) and laminates. In FY2019-20, MDF contributed 49.78 per cent of the company's revenue and laminates contributed 48.68 per cent of revenue. During the year, new capacities were added in Thin and Thick MDF Industry which ultimately resulted in aggressive price cuts. The price cut was largely driven by incremental capacities coming on ground mainly in North and South India.

The company, in its 2019-20 annual report, said that new MDF Board production plant would become operational in the South India (Andhra Pradesh) with additional capacity of 800 CBM per day. "This is expected to substitute imports in a big way due to logistical savings and a depreciating INR. It is also expected to take position of plywood because there is very big gap between utilisation of plywood and MDF board," it said.

Meanwhile, the board of directors of the Company, in its meeting held on October 15, 2020 has approved allotment of 4.98 million partly paid-up rights equity shares of face value of Rs 10 each at price of Rs 50 per rights equity share (including premium of Rs 40 per Rights Equity Share). The allotment shares on a rights basis was in the ratio of 1 rights equity share for every 3 equity shares held by the eligible equity shareholders on the Record Date. 25 per cent of the issue price viz. Rs 12.5 per rights equity share will be payable on application.