Response Informatics Faces Significant Volatility Amidst Ongoing Financial Struggles

Response Informatics, a microcap player in the software products industry, has experienced significant volatility today, hitting a new 52-week low of Rs. 20. The stock has underperformed its sector by 10.72%, continuing a downward trend with a cumulative decline of 18.24% over the past three days. Opening with a loss of 2.97%, it reached an intraday low of Rs. 20, reflecting a drop of 13.98% during the trading session.
The company's performance over the past year has been notably poor, with a staggering decline of 70.49%, contrasting sharply with the Sensex's modest drop of 1.93%. Response Informatics is currently trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a persistent downward trajectory.

Financial metrics reveal operating losses, with the latest quarterly net sales reported at Rs. 6.16 crore and a negative PBT of Rs. -0.07 crore. The company's ability to service its debt remains weak, as evidenced by a low EBIT to interest ratio of 1.99. Despite these challenges, the stock is trading at a discount compared to its peers, with a price-to-book value of 1.2 and a return on equity of 13.6%.