Responsive Industries Limited Fundamental Analysis (NSE: RESPONIND.NS)
Responsive Industries Limited Fundamental Analysis (NSE: RESPONIND.NS)
Responsive Industries Limited (NSE: RESPONIND.NS) shows weak financial fundamentals with a PE ratio of 40.81, profit margin of 8.12%, and ROE of 6.93%. The company generates $12.5B in annual revenue with strong year-over-year growth of 30.45%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 63.9/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze RESPONIND.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakRESPONIND.NS struggles to generate sufficient returns from assets.
Valuation Score
ModerateRESPONIND.NS shows balanced valuation metrics.
Growth Score
ExcellentRESPONIND.NS delivers strong and consistent growth momentum.
Financial Health Score
ExcellentRESPONIND.NS maintains a strong and stable balance sheet.
Profitability Score
WeakRESPONIND.NS struggles to sustain strong margins.
Key Financial Metrics
Is RESPONIND.NS Expensive or Cheap?
P/E Ratio
RESPONIND.NS trades at 40.81 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, RESPONIND.NS's PEG of -0.83 indicates potential undervaluation.
Price to Book
The market values Responsive Industries Limited at 2.65 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 20.74 times EBITDA. This signals the market has high growth expectations.
How Well Does RESPONIND.NS Make Money?
Net Profit Margin
For every $100 in sales, Responsive Industries Limited keeps $8.12 as profit after all expenses.
Operating Margin
Core operations generate 9.72 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.93 in profit for every $100 of shareholder equity.
ROA
Responsive Industries Limited generates $5.47 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Responsive Industries Limited generates limited operating cash flow of $483.82M, signaling weaker underlying cash strength.
Free Cash Flow
Responsive Industries Limited produces free cash flow of $385.02M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.44 in free cash annually.
FCF Yield
RESPONIND.NS converts 0.93% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
40.81
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.83
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.65
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.31
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.13
vs 25 benchmark
Current Ratio
Current assets to current liabilities
6.16
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How RESPONIND.NS Stacks Against Its Sector Peers
| Metric | RESPONIND.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 40.81 | 27.37 | Worse (Expensive) |
| ROE | 6.93% | 1190.00% | Weak |
| Net Margin | 8.12% | 204.00% | Weak |
| Debt/Equity | 0.13 | 0.73 | Strong (Low Leverage) |
| Current Ratio | 6.16 | 3.14 | Strong Liquidity |
| ROA | 5.47% | 2758.00% | Weak |
RESPONIND.NS outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Responsive Industries Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
163.29%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
709.75%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
-17.50%
Industry Style: Cyclical, Commodity, Value
Declining