Responsive Ind (RESPONIND)

FairStock Score: 7/100 — RISKY

Score breakdown: P/E: 1/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

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.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer