Stock Price Movement and Market Context
On 23 Feb 2026, Rushil Decor Ltd (Stock ID: 479846), operating in the Plywood Boards and Laminates sector, recorded its lowest price in the past year at Rs.18.5. This new low represents a continuation of a three-day losing streak, during which the stock has declined by 5.25%. The day’s performance saw the stock fall by 1.31%, underperforming its sector by 1.23%. Notably, the share price is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish sentiment.
In contrast, the broader market has shown resilience. The Sensex opened 92.12 points higher and climbed further by 387.83 points to close at 83,294.66, a 0.58% gain. The index remains 3.44% shy of its 52-week high of 86,159.02. Mega-cap stocks have been the primary drivers of this market strength, while Rushil Decor’s performance diverges markedly from this trend.
Financial Performance and Fundamental Indicators
Rushil Decor’s financial metrics reveal several areas of concern. The company’s long-term fundamental strength is weak, with an average Return on Capital Employed (ROCE) of 9.26%, which is modest relative to industry standards. Over the past five years, operating profit has grown at an annual rate of 15.18%, indicating limited growth momentum.
Debt servicing capacity is another challenge, with a high Debt to EBITDA ratio of 4.10 times, suggesting elevated leverage and potential strain on cash flows. The company has reported negative results for four consecutive quarters, with the latest six-month Profit After Tax (PAT) at Rs.10.68 crores declining by 53.55%. Similarly, Profit Before Tax excluding Other Income (PBT less OI) for the quarter stood at Rs.6.35 crores, down 47.99%. The half-year ROCE has dropped to a low of 5.34%, underscoring deteriorating capital efficiency.
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Relative Performance and Market Position
Over the last year, Rushil Decor has delivered a total return of -34.31%, significantly lagging the Sensex’s positive 10.60% return. The stock’s 52-week high was Rs.33.8, highlighting the extent of the decline. Furthermore, the company has consistently underperformed the BSE500 index in each of the past three annual periods, reflecting persistent challenges in maintaining competitive performance.
Domestic mutual funds hold no stake in Rushil Decor, which is notable given their capacity for detailed company analysis. This absence may indicate a cautious stance towards the company’s current valuation or business outlook.
Valuation and Peer Comparison
Despite the subdued performance, Rushil Decor’s valuation metrics suggest some degree of attractiveness. The company’s ROCE stands at 4.4%, and it trades at an Enterprise Value to Capital Employed ratio of 0.9, indicating a discount relative to its peers’ historical averages. However, this valuation discount accompanies a significant contraction in profitability, with profits falling by 79.4% over the past year.
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Mojo Score and Rating Update
Rushil Decor’s Mojo Score currently stands at 14.0, reflecting a Strong Sell rating. This is a downgrade from the previous Sell grade, which was revised on 10 Nov 2025. The Market Capitalisation Grade is rated 4, indicating a relatively small market cap within its sector. These ratings encapsulate the company’s ongoing financial pressures and market performance challenges.
Summary of Key Metrics
To summarise, Rushil Decor Ltd’s stock has reached a new 52-week low of Rs.18.5, continuing a downward trend over recent sessions. The company’s financial indicators reveal subdued profitability, high leverage, and declining returns on capital. While the valuation appears discounted relative to peers, the significant profit contraction and absence of institutional mutual fund holdings highlight ongoing concerns. The stock’s underperformance relative to the Sensex and sector benchmarks further emphasises the challenges faced by the company in the current market environment.
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