Responsive Industries is hot for the day; trading up by 12.5% in today’s trade

Responsive Industries is a leading manufacturer of PVC Products with three product verticals- polyvinyl flooring, synthetic leather, and Luxury Vinyl Tile.

The market opened flat on July 6. At 11 am, S&P BSE Sensex is trading 0.75% higher, while NIFTY is 0.66% up for the day. On the sectoral front, metal and energy are losers, while auto, consumer discretionary, and banks are performing well today. Also, one macro factor to consider before jumping on for today's trade is the crude oil prices, which showed a sharp decline yesterday.

Talking about a stock specific action, Responsive Industries Limited, part of Consumer Discretionary, is trending today on the stock market. At 11 am, the shares of Responsive Industries Limited are trading 12.5% higher for the day. The stock also made a high of Rs 149.4 during the day.

Responsive Industries Limited belongs to S&P BSE group “A” and has a market capitalization of Rs 3,809 crore. The company is involved in the business of furniture, home furnishing, and flooring. Responsive Industries is a leading manufacturer of PVC Products with three product verticals- polyvinyl flooring, synthetic leather, and Luxury Vinyl Tile. The company has India’s largest facility with 25 million plus square meters of contract sheet vinyl. The company exports its products to 70+ countries and has a network of 300+ international distributors.

However, the company has poor financials. The 5-year sales growth for the company is at -11.23% CAGR. As per March FY22 period ending, the company also has a weak ROE of 2.23%. On the bright side, over the last five years, the Q4 FY22 was the best quarterly performance for the company in terms of revenue number.

Talking about valuations, the company is trading at a high PE multiple of 226.55x and more than 5 times its book value. FIIs and DIIs hold almost 9% stake, promoters hold 49.5%, and the rest is public holdings in the company. The stock has a 52-week high and low of Rs 215 and Rs 98.05.