Understanding the Current Rating
The Strong Sell rating assigned to Rushil Decor Ltd indicates a cautious stance for investors, signalling significant concerns across multiple evaluation parameters. This rating is derived from a comprehensive assessment of the company’s quality, valuation, financial trend, and technical outlook. It suggests that the stock is expected to underperform relative to the broader market and peers in the plywood boards and laminates sector.
Quality Assessment
As of 27 February 2026, Rushil Decor Ltd’s quality grade remains below average. The company’s long-term fundamental strength is weak, with an average Return on Capital Employed (ROCE) of just 9.26%. This figure is modest and indicates limited efficiency in generating profits from its capital base. Furthermore, operating profit growth over the last five years has been a moderate 15.18% annually, which is insufficient to inspire confidence in sustained expansion.
Additionally, the company’s ability to service its debt is under pressure, with a high Debt to EBITDA ratio of 4.10 times. This elevated leverage ratio raises concerns about financial risk, especially in a challenging market environment. The combination of modest profitability and high debt levels contributes to the below-average quality grade.
Valuation Perspective
Despite the weak fundamentals, the valuation grade for Rushil Decor Ltd is currently attractive. This suggests that the stock price has adjusted downward to levels that may offer value relative to its earnings and asset base. However, an attractive valuation alone does not offset the risks posed by poor financial health and negative trends. Investors should consider that the low price may reflect market apprehension about the company’s future prospects.
Financial Trend Analysis
The financial trend for Rushil Decor Ltd is negative as of 27 February 2026. The company has reported losses in the last four consecutive quarters, signalling ongoing operational challenges. The latest six-month Profit After Tax (PAT) stands at ₹10.68 crores, having declined by 53.55%. Similarly, Profit Before Tax excluding other income (PBT less OI) for the quarter is ₹6.35 crores, down 47.99%. These figures highlight a deteriorating earnings profile.
Moreover, the half-year ROCE has dropped to a low 5.34%, underscoring the weakening efficiency in capital utilisation. Such negative trends in profitability and returns are key factors influencing the Strong Sell rating, as they point to sustained financial stress and limited near-term recovery prospects.
Technical Outlook
The technical grade for Rushil Decor Ltd is bearish, reflecting downward momentum in the stock price and weak market sentiment. The stock’s recent price performance corroborates this view, with a 1-day gain of 1.6% overshadowed by significant declines over longer periods: -6.46% over one week, -10.46% over one month, and a steep -32.42% over the past year as of 27 February 2026.
This persistent underperformance against benchmarks such as the BSE500 index, which the stock has lagged in each of the last three annual periods, reinforces the negative technical outlook. The bearish trend suggests limited buying interest and potential for further downside in the near term.
Additional Considerations
Rushil Decor Ltd is classified as a microcap company within the plywood boards and laminates sector. Despite its size, domestic mutual funds hold no stake in the company, which may indicate a lack of confidence from institutional investors who typically conduct thorough due diligence. This absence of institutional backing further emphasises the caution warranted by the current rating.
Overall, the combination of weak quality metrics, attractive but potentially misleading valuation, negative financial trends, and bearish technical signals culminate in the Strong Sell rating. For investors, this rating serves as a warning to carefully evaluate the risks before considering exposure to this stock.
Here’s How Rushil Decor Ltd Looks Today
As of 27 February 2026, the company’s financial metrics and stock performance paint a challenging picture. The stock has delivered a negative return of 32.42% over the past year, reflecting persistent operational and market difficulties. The declining profitability and high leverage raise concerns about the company’s ability to generate sustainable cash flows and service its obligations.
Investors should note that while the valuation appears attractive, it is largely a reflection of the market’s cautious stance rather than an endorsement of the company’s fundamentals. The bearish technical indicators suggest that the stock may continue to face downward pressure in the near term.
Quarter after quarter, this Small Cap from the Lifestyle sector delivers without fail! Just added to our Reliable Performers with proven staying power. Stability meets growth here beautifully.
- - Consistent quarterly delivery
- - Proven staying power
- - Stability with growth
Implications for Investors
The Strong Sell rating on Rushil Decor Ltd advises investors to exercise caution. It suggests that the stock is likely to underperform and may carry elevated risk due to weak fundamentals and negative financial trends. Investors seeking exposure to the plywood boards and laminates sector might consider alternative companies with stronger quality metrics and more favourable technical setups.
For those currently holding the stock, the rating signals the importance of closely monitoring the company’s quarterly results and market developments. Given the high debt levels and declining profitability, any further deterioration could exacerbate downside risks.
Conversely, value-oriented investors might watch for signs of operational turnaround or deleveraging that could improve the company’s outlook. However, such a recovery is not evident in the current data as of 27 February 2026.
Summary
Rushil Decor Ltd’s Strong Sell rating by MarketsMOJO, last updated on 10 November 2025, reflects a comprehensive evaluation of its current financial and market position as of 27 February 2026. The company faces significant challenges in quality, financial health, and technical momentum, despite an attractive valuation. This rating serves as a prudent guide for investors to carefully assess the risks before considering investment in this stock.
About MarketsMOJO Ratings
MarketsMOJO’s ratings are based on a detailed analysis of multiple factors including company quality, valuation, financial trends, and technical indicators. The Strong Sell rating is reserved for stocks with weak fundamentals, negative financial trajectories, and bearish market signals, indicating a high likelihood of underperformance relative to the broader market.
Stock Performance Snapshot as of 27 February 2026
1 Day Change: +1.60% | 1 Week: -6.46% | 1 Month: -10.46% | 3 Months: -23.44% | 6 Months: -22.84% | Year-to-Date: -20.71% | 1 Year: -32.42%
Financial Highlights
Return on Capital Employed (5-year average): 9.26%
Operating Profit Growth (5-year CAGR): 15.18%
Debt to EBITDA Ratio: 4.10 times
PAT (Latest 6 months): ₹10.68 crores, down 53.55%
PBT less Other Income (Quarterly): ₹6.35 crores, down 47.99%
ROCE (Half Year): 5.34%
Institutional Holding
Domestic mutual funds currently hold 0% stake in Rushil Decor Ltd, reflecting limited institutional interest.
Market Capitalisation
Classified as a microcap company within the plywood boards and laminates sector.
Limited Period Only. Start at Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Get 71% Off →
