Responsive Industries Limited (RESPONIND) AI Stock Analysis

• Market Cap: ₹42.48B
• Dividend Yield: 0.05%
• Average Volume (3M): 2.74K
• Price to Earnings (P/E): 59.4
• Beta (1Y): 1.14
• Revenue Growth: 14.37%
• EPS Growth: 7.71%
• Country: IN
• Employees: 304
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Chemicals - Specialty
• EPS (TTM): 0.84
• 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: ₹175.00 ▼(-11.64% Downside)
• Action: Reiterated Date: 12/02/25
• Date: Action: Reiterated 12/02/25

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

Strong balance sheet

A high equity ratio and low D/E provide durable financial stability and flexibility. This capital structure supports investment, cushions downturns, and reduces refinancing risk, enabling the company to pursue capex or absorb volatility without immediate reliance on external funding.

Revenue growth and higher gross margin

Sustained top-line growth with improving gross margins indicates better pricing power or input-cost management. That combination strengthens long-term earnings potential, supports reinvestment in capacity or product quality, and enhances resilience to raw-material swings.

Improved return on equity

Rising ROE suggests more effective use of shareholder capital and stronger operational profitability. Over a multi-month horizon, improved ROE reflects management's ability to allocate capital to higher-return projects and underpins sustainable shareholder value creation.

Negative Factors

Operating cash flow slump

A sharp drop in operating cash flow weakens internal funding for working capital, capex and distributions. If persistent, it forces reliance on external financing, increases liquidity risk and undermines the quality of reported earnings despite accounting profits.

Weak free cash flow conversion

Declining free cash flow and low FCF-to-net-income indicate earnings aren't converting to cash efficiently. This constrains funding for growth or debt reduction and can limit durable investment, dividends, or buybacks without raising external capital.

EBITDA margin compression

A drop in EBITDA margin signals rising operating costs or pricing pressure that erodes operating leverage. If structural, margin compression reduces cash generation and competitiveness, requiring cost controls or product mix improvements to restore durable profitability.

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 primarily makes money by manufacturing and selling PVC/vinyl-based flooring products. Revenue is generated through (1) sale of finished flooring materials (e.g., vinyl tiles/planks and sheet/vinyl rolls) to customers in construction and interior fit-out markets, including commercial and industrial facilities as well as residential projects; and (2) sales across domestic and export markets, where orders are typically fulfilled via distributors/stockists, dealers, retailers, and project/channel partners involved in building-materials supply and project installation. Earnings are influenced by product mix (higher value specialized or project-grade flooring versus standard products), capacity utilization in manufacturing, and input cost dynamics tied to PVC resins, plasticizers, and other petrochemical-linked raw materials. Specific details on revenue split by product line, named major customers, or significant partnerships are null.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	14.01B	14.18B	10.87B	9.74B	10.99B	7.56B
Gross Profit	4.70B	4.59B	3.27B	2.88B	2.03B	1.09B
EBITDA	3.08B	2.95B	2.58B	1.16B	1.33B	831.06M
Net Income	2.04B	1.99B	1.61B	243.93M	710.00K	403.28M
Balance Sheet
Total Assets	18.60B	17.38B	15.46B	14.01B	13.78B	12.68B
Cash, Cash Equivalents and Short-Term Investments	279.58M	282.25M	322.29M	681.25M	420.77M	486.82M
Total Debt	2.05B	2.56B	2.15B	2.60B	2.36B	2.00B
Total Liabilities	3.88B	3.92B	4.09B	3.62B	3.75B	2.66B
Stockholders Equity	14.72B	13.45B	11.37B	9.72B	9.69B	9.67B
Cash Flow
Free Cash Flow	385.02M	231.32M	350.09M	132.40M	-343.61M	-2.71B
Operating Cash Flow	483.82M	754.09M	2.25B	210.82M	-200.03M	1.45B
Investing Cash Flow	137.21M	-1.02B	-1.56B	-47.15M	-52.74M	-1.66B
Financing Cash Flow	-619.33M	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: Positive
• STOCH: Positive

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 172.48, above the 50-day MA of 179.74, and below the 200-day MA of 198.85, indicating a bearish trend. The MACD of -6.53 indicates Positive momentum. The RSI at 24.92 is Positive, neither overbought nor oversold. The STOCH value of 6.86 is Positive, 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	80 Outperform	₹21.80B	10.60	―	1.01%	11.55%	13.57%
RESPONIND	73 Outperform	₹42.48B	59.40	―	0.05%	14.37%	7.71%
KDDL	67 Neutral	₹26.68B	33.24	―	0.84%	26.91%	0.67%
KKCL	66 Neutral	₹27.93B	22.08	―	0.41%	28.67%	-20.77%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
RUPA	58 Neutral	₹9.73B	19.56	―	1.82%	0.78%	0.54%
GOENKA	41 Neutral	₹266.28M	-23.75	―	―	―	―

Responsive Industries Limited Corporate Events

Responsive Industries corrects promoter share-pledge disclosure

Responsive Industries Limited has notified the exchanges that a previously filed disclosure on the creation of a share pledge by promoter group entity Fairpoint Tradecom LLP contained a typographical error and has now been corrected. The revised filing clarifies the details of a pledge created on March 5, 2026 over a portion of Fairpoint Tradecom LLP’s shareholding, an administrative update that fine-tunes transparency around promoter encumbrances but does not indicate a change in overall ownership structure.

The updated disclosure specifies the number and percentage of shares encumbered, the nature of the encumbrance as a pledge, and notes that it is linked to personal borrowing by the promoter group entity. While largely technical in nature, the correction helps ensure accurate regulatory reporting under SEBI’s takeover regulations, providing clearer information to investors and maintaining compliance on promoter share pledging activity.