Responsive Industries Receives 'Buy' Rating and Shows Strong Financial Performance

Responsive Industries, a midcap company in the plastic products industry, has recently received a 'Buy' rating from MarketsMOJO. This upgrade is based on the company's strong ability to service debt, with a low Debt to EBITDA ratio of 1.21 times.
In addition, Responsive Industries has shown impressive growth in net profit, with a 9.93% increase in Dec 23. The company has also consistently declared positive results for the last 5 quarters, with the highest operating profit to interest ratio of 12.51 times and PBDIT of Rs 66.45 crore. Its operating profit to net sales ratio is also the highest at 24.86%.

From a technical standpoint, the stock is currently in a bullish range and has shown improvement in its trend from mildly bullish to bullish on 02-May-24. This is supported by multiple factors such as MACD, Bollinger Band, and KST.

Moreover, Responsive Industries has a high institutional holding of 38.66%, indicating that these investors have better resources and capabilities to analyze the company's fundamentals.

The stock has also outperformed the market (BSE 500) with a return of 104.93% in the last year, compared to the market's return of 36.71%.

However, there are some risks to consider. The company's ROCE is at 10.5, which is considered a very expensive valuation with an enterprise value to capital employed ratio of 6.8. Additionally, the stock is currently trading at a discount compared to its average historical valuations. Furthermore, while the stock has shown a significant return of 104.93% in the past year, its profits have only increased by 13716%.

Overall, Responsive Industries seems to be a promising midcap company in the plastic products industry, with strong financials and a positive market performance. However, investors should carefully consider the risks before making any investment decisions.