Responsive Ind (RESPONIND)
CyclicalFairStock Score: 7/100 — RISKY
Score breakdown: P/E: 1/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹165.9 |
| Market Cap | ₹4,423.04 Cr |
| P/E Ratio | 29.78 |
| ROCE | 15.83% |
| ROE | 10.22% |
| Dividend Yield | 0.06% |
| Profit Growth | -55.3% |
| Debt/Equity | 0.13 |
| Sales Growth | -0.67% |
| Promoter Holding | 59.14% |
| 52-Week Range | ₹117.25 — ₹240.9 |
| Sector | Consumer Durables |
| Book Value | ₹58.47 |
Strengths
- Low leverage: Debt/Equity at 0.14
- Promoter holding of 59.14% aligns owner and minority interests
- ROCE of 15.83% suggests reasonable operational capital efficiency
- Latest quarter remains profitable with ₹22 Cr net profit on ₹311 Cr sales
- Book value of ₹35.50 provides some asset backing
Concerns
- Sales down 15.36% and profit down 51.05% show serious business deterioration
- P/E of 25.80 is expensive for a company with falling earnings
- Reported ROE of 1.88% and Piotroski F-score of 3/9 indicate weak financial health
- Dividend yield of only 0.06% gives negligible income support; P/B of 4.31 is rich
AI Analysis
At ₹153.10, Responsive Ind is capitalised at ₹4,653 crore. That is not a small number for a furnishing company. Ben Graham taught me to treat a stock as a business, and this business is going backwards: sales have fallen 15.36% and profit has collapsed by 51.05%. A P/E of 25.80 on those depressed earnings is not inexpensive; it is an earnings multiple that expects a sharp rebound. The reported ROE of 1.88% is a red flag, and although ROCE at 15.83% is respectable, the company earns very little for shareholders relative to its ₹35.50 book value. With P/B at 4.31, I would be paying more than four rupees for every one rupee of net assets. The Piotroski F-score of 3/9 strengthens my concern: this is a financially deteriorating business, not one with improving fundamentals. The FairStock Score of 6/100 labels it risky. There are some positives: debt/equity is low at 0.14, and promoter holding of 59.14% at least aligns ownership with minority investors. But a 0.06% dividend yield gives me no compensation while I wait, and furniture is a competitive, cyclical business without an obvious moat. The latest quarter shows ₹311 crore sales and ₹22 crore profit, so it is not bankrupt, but my margin of safety is missing. I would rather miss a bounce than overpay for a declining franchise. Let the price fall or the earnings recover before I change my mind.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer