Responsive Industries Limited (RESPONIND) AI Stock Analysis

• Market Cap: ₹44.99B
• Dividend Yield: 0.05%
• Average Volume (3M): 2.74K
• Price to Earnings (P/E): 22.0
• Beta (1Y): 1.17
• Revenue Growth: 14.37%
• EPS Growth: 7.71%
• Country: IN
• Employees: 304
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Chemicals - Specialty
• EPS (TTM): 2.00
• Shares Outstanding: 266,608,550
• 10 Day Avg. Volume: 2,004
• 30 Day Avg. Volume: 2,744
• PEG Ratio: 1.12
• Price to Book (P/B): 3.86
• Price to Sales (P/S): 3.66
• P/FCF Ratio: 224.52
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ₹188.00 ▼(-5.07% Downside)

Responsive Industries Limited shows strong financial performance with robust growth and profitability, though cash flow challenges need attention. Technical indicators suggest positive momentum, but the stock is nearing overbought levels. The high P/E ratio indicates a premium valuation, which may limit further upside despite a decent dividend yield.

Positive Factors

Revenue & Gross Margin Improvement

Sustained revenue growth paired with a higher gross margin indicates stronger pricing power or improved input cost management. Over 2–6 months this supports durable profitability, better absorption of fixed costs, and a stronger platform to invest in product quality and distribution.

Strong Balance Sheet

A high equity ratio and low leverage provide financial resilience and borrowing optionality, enabling the company to weather cyclical downturns and fund targeted expansions without large refinancing risk. Improved ROE shows better capital utilization versus peers.

Capex Discipline and Positive FCF

Disciplined capex that preserves positive free cash flow supports sustainable reinvestment in capacity and maintenance while limiting reliance on external funding. Over the medium term this underpins organic growth and preserves financial flexibility for strategic projects.

Negative Factors

Operating Cash Flow Decline

A sharp drop in operating cash flow signals weakening cash conversion and potential working-capital stress. If persistent, this can constrain day-to-day operations, force higher short-term borrowing, and limit the firm's ability to fund growth or absorb input cost volatility.

Eroding EBITDA Margin

A falling EBITDA margin suggests pressure on operating efficiency or adverse product mix trends. Without structural cost reductions or pricing improvements, margin erosion can reduce cash available for reinvestment and weaken the company’s competitive resilience over the medium term.

Rising Debt Needs Monitoring

Although current leverage is low, an uptick in total debt introduces the risk of higher financial obligations if cash generation lags. Continued debt increases would raise interest costs and reduce strategic flexibility, especially if operating cash flow recovery is slow.

Responsive Industries Limited Business Overview & Revenue Model

Company Description

Responsive Industries Limited manufactures and sells polyvinyl chloride (PVC) based products for commercial and household purposes in India. Its products primarily include vinyl flooring, synthetic leather, luxury vinyl tile, and shipping ropes. The company serves the healthcare, safety and transport, education, sports, retail and offices, hospitality and residential, commercial, and industrial markets. It also exports its products. The company was formerly known as Responsive Polymers Limited and changed its name to Responsive Industries Limited in 2007. The company was incorporated in 1982 and is based in Thane, India.

How the Company Makes Money

Responsive Industries Limited generates revenue through the sale of its core products, which include various types of flooring solutions such as vinyl sheets, tiles, and luxury vinyl planks. The company employs a multi-channel distribution strategy, selling directly to customers as well as through partnerships with retailers, wholesalers, and contractors. Key revenue streams include bulk sales to large construction projects, retail sales through home improvement stores, and exports to international markets. Additionally, RESPONIND benefits from long-term contracts with commercial clients and government projects, which provide a steady flow of income. The company's focus on innovation and quality has allowed it to establish strong brand recognition, leading to repeat business and customer loyalty, further contributing to its revenue.

Responsive Industries Limited Financial Statement Overview

Summary

Responsive Industries Limited demonstrates strong growth and profitability, supported by a solid equity base and prudent leverage. However, cash flow challenges present potential risks. Continued focus on operational efficiency and cash management will be crucial for sustaining growth and financial health.

Income Statement

Responsive Industries Limited has shown strong revenue growth with a notable increase from 2024 to 2025. The gross profit margin improved from 30.1% in 2024 to 32.3% in 2025, indicating enhanced cost management. The net profit margin also increased, rising from 14.8% to 14.0%, showing improved profitability. However, the EBITDA margin slightly decreased from 23.9% to 20.8%, suggesting some efficiency challenges in operations. Overall, the income statement reflects robust growth and solid profitability.

Balance Sheet

The company maintains a strong equity base with an equity ratio of 77.4% in 2025, indicating financial stability. The debt-to-equity ratio is relatively low at 19.0%, showing prudent leverage management. Return on equity improved to 14.8% in 2025, suggesting better utilization of equity. The balance sheet is strong, but the increase in total debt warrants monitoring for future leverage levels.

Cash Flow

Operating cash flow decreased significantly from 2,250 million in 2024 to 754 million in 2025, indicating potential cash flow management issues. Free cash flow also declined, affecting liquidity. The free cash flow to net income ratio remains low, suggesting room for improvement in cash generation relative to net earnings. Despite these weaknesses, the company has managed capital expenditures effectively, ensuring positive free cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	14.37B	14.18B	10.87B	9.74B	10.99B	7.56B
Gross Profit	4.42B	4.59B	3.27B	2.88B	2.03B	1.09B
EBITDA	3.03B	2.95B	2.58B	1.16B	1.33B	831.06M
Net Income	2.00B	1.99B	1.61B	243.93M	710.00K	403.28M
Balance Sheet
Total Assets	0.00	17.38B	15.46B	14.01B	13.78B	12.68B
Cash, Cash Equivalents and Short-Term Investments	282.25M	282.25M	322.29M	681.25M	420.77M	486.82M
Total Debt	0.00	2.56B	2.15B	2.60B	2.36B	2.00B
Total Liabilities	-13.45B	3.92B	4.09B	3.62B	3.75B	2.66B
Stockholders Equity	13.45B	13.45B	11.37B	9.72B	9.69B	9.67B
Cash Flow
Free Cash Flow	0.00	231.32M	350.09M	132.40M	-343.61M	-2.71B
Operating Cash Flow	0.00	754.09M	2.25B	210.82M	-200.03M	1.45B
Investing Cash Flow	0.00	-1.02B	-1.56B	-47.15M	-52.74M	-1.66B
Financing Cash Flow	0.00	182.11M	-771.40M	-95.52M	178.98M	253.73M

Responsive Industries Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 198.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:RESPONIND, the sentiment is Negative. The current price of 198.05 is above the 20-day moving average (MA) of 180.14, above the 50-day MA of 193.17, and below the 200-day MA of 200.22, indicating a bearish trend. The MACD of -7.75 indicates Positive momentum. The RSI at 32.34 is Neutral, neither overbought nor oversold. The STOCH value of 37.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:RESPONIND.

Responsive Industries Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MAYURUNIQ	75 Outperform	₹22.25B	14.48	―	1.01%	11.55%	13.57%
RESPONIND	73 Outperform	₹44.99B	22.02	―	0.05%	14.37%	7.71%
KDDL	67 Neutral	₹28.10B	30.47	―	0.84%	26.91%	0.67%
KKCL	66 Neutral	₹28.36B	21.83	―	0.41%	28.67%	-20.77%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
RUPA	58 Neutral	₹11.92B	16.04	―	1.82%	0.78%	0.54%
GOENKA	41 Neutral	₹266.28M	-16.34	―	―	―	―