Responsive Industries: A Stock Worth Watching
For investors seeking promising opportunities in the stock market, Responsive Industries Limited presents an attractive option. The company has garnered positive attention from various brokerage firms, underscoring its significance in the construction sector as a leading supplier of PVC membranes and synthetic products for numerous government projects in India.
Current Stock Performance
As of September 17, Responsive Industries saw a modest increase of 0.36%, closing at ₹294.40 on the Bombay Stock Exchange (BSE). With a market capitalization of ₹7,848 crore, the stock appears to be positioned for growth, especially given its recent 52-week range, with a high of ₹364.80 and a low of ₹255.25.
Growth Opportunities Ahead
The Ministry of Road Transport and Highways (MoRTH) of India recently announced ambitious plans for the development of 75 tunnel projects across the country, with a staggering investment of ₹1 lakh crore aimed at enhancing national infrastructure and connectivity. This initiative is likely to positively impact Responsive Industries, as the company specializes in providing high-quality PVC membranes that are crucial for the structural integrity of tunnel projects.
Track Record in Infrastructure Projects
Responsive Industries has built an impressive portfolio through its execution of various significant infrastructure projects across India. Notable among these are the Rishikesh-Karnprayag Rail Link and the Rangpo Tunnel Project in Sikkim. This experience positions the company favorably to capitalize on the upcoming government contracts for the new tunnel projects.
Brokerage Insights
Brokerage firm Ventura Securities has expressed optimism regarding the future performance of Responsive Industries, setting a target price of ₹436 for the stock by May 2024. Their analysis indicates a potential upside of approximately 48% from the current price, and they anticipate this target could be reached in the next 24 months, highlighting strong growth prospects for the company.
Financial Performance Highlights
Responsive Industries has shown robust financial performance, as reflected in its first-quarter results for FY25. The company reported a remarkable revenue growth of 21.18%, reaching ₹321.92 crore in the June quarter. Additionally, the net profit surged by 63.89% year-over-year, amounting to ₹48.38 crore. Notably, the net profit margin also improved to 15.03%, a significant increase from 35.24% last year, showcasing the company’s ability to enhance profitability.
Key Financial Metrics
| Metric | Value |
|---|---|
| Current Share Price | ₹294.40 |
| Market Capitalization | ₹7,848 Crore |
| 52-Week High | ₹364.80 |
| 52-Week Low | ₹255.25 |
| Q1 FY25 Revenue Growth | 21.18% |
| Q1 FY25 Net Profit Growth | 63.89% |
Conclusion
In summary, Responsive Industries Limited appears to be a strong contender for investors, particularly those interested in the construction and infrastructure sectors. With government initiatives poised to drive growth and impressive financial results, this stock merits close attention. As always, prospective investors should conduct thorough research and consider consulting with certified financial experts before making investment decisions.
(Disclaimer: The opinions expressed in this article are those of the authors and brokerage firms. Moneycontrol is not responsible for any investment decisions made based on this information. Users are encouraged to seek professional advice before investing.)
