Responsive Industries
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Responsive Industries Limited (RIL) is navigating a challenging landscape marked by raw material price volatility and competition from low-cost imports, particularly from China. Management's focus on penetrating the domestic residential sector and leveraging the 'Make in India' initiative is crucial for future revenue growth. However, the company's revenue is expected to contract over the forecast period, reflecting pressures on margins and cautious investor sentiment. Vista's financial outlook anticipates continued long-term growth, albeit with significant headwinds, including rising costs and supply chain disruptions. The textiles industry is expanding, yet RIL's market share remains stable at 1.1254%, indicating limited pricing power amidst competitive pressures. Over the next 12-24 months, key opportunities include product innovation and domestic market expansion, while watchpoints include the impact of environmental regulations and the potential for global price suppression. Overall, RIL's current valuation suggests a value trap, with an expected downside of approximately 50%
Why We Like This Stock
- Management's strategic focus on domestic market penetration aligns with the structural expansion of the Indian PVC market
- The 'Make in India' initiative provides potential regulatory protections that could enhance competitive positioning
- Product innovation is emphasized as a key driver for future growth, which could improve market share
Things To Watch Out For
- Revenue is expected to contract due to raw material price volatility and competition from low-cost imports
- Margins are under pressure, which could impact profitability and investor sentiment
- Reliance on imported resins poses a risk, particularly in a volatile global pricing environment
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 1,087 | 1,418 | 1,394 | 921 | 859 |
| Profit Before Tax (Cr.) | 173 | 210 | 155 | 74 | 76 |
| PBT Margin | 15.9% | 14.8% | 11.1% | 8.1% | 8.8% |
| Net Profit (Cr.) | 164 | 202 | 149 | 56 | 57 |
| Earnings Per Share | 6.2 | 7.6 | 5.6 | 2.1 | 2.1 |
Analyst Recommendations
No analyst recommendations available.
Company Overview
Show Company Profile
Responsive Industries Limited manufactures and sells polyvinyl chloride (PVC) based products in India and internationally. The company provides vinyl flooring, synthetic leather/ropes, and luxury vinyl tile, including LVT-SPC and waterproofing membranes. It also offers plastic, non-metallic mineral, rubber products, and fabricated metal products. The company serves the hospitality, transportation, healthcare, IT and telecom, retail, sports infrastructure, education, and real estate sectors. It exports its products. The company was formerly known as Responsive Polymers Limited and changed its name to Responsive Industries Limited in 2007. Responsive Industries Limited was incorporated in 1982 and is based in Thane, India. Responsive Industries Limited is a subsidiary of Wellknown Business Ventures LLP.