Rushil Décor Limited

Consumer Cyclical — Furnishings, Fixtures & Appliances · NSE

₹15.89+₹0.41 (+2.65%)

DalalBaazaar Score

43 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity, falling profits.

In simple words: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

The 60-second version of Rushil Décor Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Rushil Décor Limited manufactures and sells decorative laminate sheets and medium density fiber (MDF) boards for use in residential and commercial spaces in India.

IndustryFurnishings, Fixtures & Appliances

SectorConsumer Cyclical

Employees942

Annual revenue₹834 Cr

How does it make money?

Turns over ₹834 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹9 left at the operating level before interest, tax and depreciation. Each of its 942 employees supports ₹88.6 lakh of revenue a year, the signature of a people-led business.

EBITDA margin8.6%

Net margin0.8%

Revenue / employee₹88.6 lakh

Who are its competitors?

The closest listed comparisons in its industry are HAVELLS INDIA LIMITED, VOLTAS LTD, TITAN COMPANY LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

HAVELLS INDIA LIMITEDP/E 43.5x · ROE 17.1%

VOLTAS LTDP/E 75.8x · ROE 7.0%

TITAN COMPANY LIMITEDP/E 68.5x · ROE 36.7%

What is its competitive advantage?Little sign of one

Returns on capital of 4.5% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE4.5%

ROE1.0%

Peer median ROE17.1%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +1% while net margin moved -91% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+1%

Margin effect-91%

DalalBaazaar Score

43/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 0.3% — barely ahead of inflation
✗ Profit has declined at 55.8% a year
✗ Profit fell 86.0% in the latest year

Quality vs. Valuation

Company Quality

39/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

59/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

20.1x

3Y Median

13.1x

40 monthly readings · mean 19.0x · range 7.3x–71.5x

Sector Median

68.5x

median of 3 sector peers

⚠️Current valuation is approximately 54% above its 3y median of 13.1x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 71% below the peer median of 68.5x.

vs. its own history

Expensive

13.1x median over 40 months · +54%

vs. sector peers

Cheap

68.5x median of 3 peers · -71%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

20.1x

P/B

0.73x

EV/EBITDA

10.1x

PEG

—

Dividend Yield

0.31%

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 36% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention6

Margins are compressing
EBITDA margin has slipped from 18.0% to 8.6% over 3 years.
Return on equity is falling
ROE has dropped from 21.4% to 1.0% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 17.7% to 4.5% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 65% against revenue growth of 1% — customers are taking longer to pay.
Inventory building faster than sales
Inventory is up 40% against revenue growth of 1% — stock may not be moving.
Valuation above its historical average
At 20.1x the stock trades 54% above its own median of 13.1x.

Red Flags

7 items require attention · 3 high · 4 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.4x — little room if earnings dip.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 9.4 points, from 18.0% to 8.6%.
🔴Receivables growing faster than salesFinancial
Receivables up 65% against revenue up 1% — sales are being booked faster than they are collected.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 3.6x to 1.4x.
🟡Profit is decliningFinancial
Net profit is down 91% over 3 years.
🟡Inventory building faster than salesFinancial
Inventory up 40% against revenue up 1% — stock may not be moving.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 31% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 36% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 71% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹21 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 18.0% to 8.6%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 3.6x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 65% against revenue up 1%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
The price already assumes success
The stock trades 54% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Growth barely outpaces inflation
Revenue compounding at 0.3% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 7%✓ 8.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 3.6x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Interest cover stays above 3x✗ 1.4x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 4% a year✗ 0.3% CAGR
Latest reported year was 27.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Free cash flow remains positive✓ ₹21 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

6 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 3 neutral · 3 weak

Market Cap

₹466 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

20.1x

Fair

Fairly valued against the generic band

P/B Ratio

0.73x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.79

Profitable

Profitable on a per-share basis

ROE

1.0%

Weak

Weak capital efficiency

ROCE

4.5%

Weak

Low return on total capital employed

Debt/Equity

0.40x

Low

Conservative leverage

Revenue Growth (YoY)

27.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-86.0%

Falling

Profits are shrinking

Dividend Yield

0.31%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹21 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹15.89

P/E (Forward)

3.3x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

4.1%

Weak

Thin margins leave little room for error

Net Margin

2.5%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.15

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.39

Defensive

Steadier than the market

52W Range Position

22%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

15.9 / 16.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

47.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹827 Cr	₹834 Cr	₹879 Cr	₹834 Cr	+0.3%
EBITDA	₹149 Cr	₹120 Cr	₹112 Cr	₹72 Cr	-21.6%
EBITDA Margin	18.0%	14.4%	12.8%	8.6%	—
PAT (Net Profit)	₹78 Cr	₹43 Cr	₹48 Cr	₹7 Cr	-55.8%
EPS	₹3.46	₹1.61	₹1.76	₹0.23	-59.5%
ROE	21.4%	7.9%	7.6%	1.0%	—
ROCE	17.7%	11.7%	10.1%	4.5%	—
Total Debt	₹406 Cr	₹296 Cr	₹272 Cr	₹260 Cr	-13.8%
Free Cash Flow	₹42 Cr	₹16 Cr	-₹0 Cr	₹21 Cr	-20.5%

🟡 Revenue has been broadly flat over 3 years (0.3% a year).

🔴 EBITDA has shrunk at 21.6% a year over 3 years.

🔴 EBITDA Margin has fallen from 18.0% to 8.6% over 3 years (-9.4 pts).

🔴 PAT (Net Profit) has shrunk at 55.8% a year over 3 years.

🔴 EPS has shrunk at 59.5% a year over 3 years.

🔴 ROE has fallen from 21.4% to 1.0% over 3 years (-20.3 pts).

🔴 ROCE has fallen from 17.7% to 4.5% over 3 years (-13.1 pts).

🟢 Total Debt has shrunk at 13.8% a year over 3 years.

🔴 Free Cash Flow has shrunk at 20.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,291 Cr

Total Liabilities

₹640 Cr

Total Debt

₹260 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹89 Cr

Capex

-₹68 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

58.8%

Corporate Actions

Dividend Rate

₹0.05

Ex-Dividend Date

08 Sept 2026

Peer Comparison

Company	P/E	ROE
HAVELLS INDIA LIMITED	43.5x	17.1%
VOLTAS LTD	75.8x	7.0%
TITAN COMPANY LIMITED	68.5x	36.7%

Recent News

1 positive3 mixed2 general

Rushil Decor Yearly results, Financial Summary

The Economic Times, 16 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

RUSHIL Forecast — Price Target — Prediction for 2027

TradingView, 08 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Rushil Décor Limited (NSE:RUSHIL) Is About To Go Ex-Dividend, And It Pays A 0.3% Yield

Simply Wall Street, 04 SeptCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Rushil Decor FY26 PAT falls 86.7% to ₹64 million

scanx.trade, 29 May

Rushil Decor Ltd

Equitypandit, 28 Dec

Rushil Decor Share Price Target 2027, 2028 and 2030: Long Term Analyst Forecast

Univest, 11 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🔴Business QualityWeak5.9/20

🟢Financial HealthStrong13.7/20

🔴GrowthWeak5/20

🔴ProfitabilityWeak4.6/15

🟡ValuationFair8.7/15

🟡RiskModerate5.2/10

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 3 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 7%8.6%
✗Debt / EBITDA falls below 3x3.6x
✗Interest cover stays above 3x1.4x
✗Revenue growth stays above 4% a year0.3% CAGR
✓Free cash flow remains positive₹21 Cr