Stock Price Movement and Market Context
On 27 Jan 2026, Responsive Industries Ltd’s share price declined by 0.49%, closing at Rs.161, the lowest level recorded in the past year. This marks a continuation of a six-day losing streak during which the stock has fallen by 12.41%. The current price is substantially below its 52-week high of Rs.253.85, representing a decline of approximately 36.6% from that peak.
The stock’s performance today notably lagged behind its sector peers, underperforming the Furniture, Home Furnishing sector by 0.7%. In contrast, the broader Sensex index recovered from an initial negative opening to close 0.35% higher at 81,824.37 points, supported by gains in mega-cap stocks. However, the Sensex itself remains below its 50-day moving average, indicating some caution in the broader market.
Responsive Industries is trading below all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling a persistent bearish momentum. This technical positioning underscores the challenges the stock faces in regaining upward traction in the near term.
Financial Performance and Valuation Metrics
The company’s recent quarterly results have contributed to the subdued market sentiment. For the quarter ending September 2025, net sales stood at Rs.313.75 crores, reflecting a decline of 12.6% compared to the average of the previous four quarters. Operating profit to interest ratio has dropped to a low of 10.88 times, while interest expenses have risen to Rs.7.04 crores, the highest recorded in recent periods.
Despite these headwinds, the company’s return on capital employed (ROCE) remains at a moderate 13.9%. However, the enterprise value to capital employed ratio of 2.7 suggests a relatively expensive valuation compared to historical norms. The stock is trading at a discount relative to its peers’ average historical valuations, which may reflect market concerns about its near-term prospects.
Over the past year, Responsive Industries has generated a negative return of 32.17%, significantly underperforming the Sensex, which posted an 8.57% gain over the same period. Notably, the company’s profits have increased by 8.6% during this timeframe, resulting in a price-to-earnings-growth (PEG) ratio of 2.5, indicating that the stock price has not kept pace with earnings growth.
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Long-Term and Sectoral Performance
Responsive Industries has underperformed not only in the short term but also over longer periods. The stock has lagged behind the BSE500 index over the last three years, one year, and three months, indicating persistent challenges in delivering shareholder returns relative to the broader market.
Within the Furniture and Home Furnishing sector, the stock’s performance contrasts with some peers that have maintained steadier growth trajectories. The sector itself has seen mixed results, with indices such as NIFTY MEDIA and NIFTY REALTY also hitting 52-week lows on the same day, reflecting sector-wide pressures.
Debt and Institutional Holding Profile
On a positive note, Responsive Industries maintains a strong ability to service its debt, with a low Debt to EBITDA ratio of 1.02 times. This suggests manageable leverage levels and a capacity to meet financial obligations without undue strain.
Institutional investors hold a significant stake in the company, accounting for 34.51% of shareholdings. Their holdings have increased marginally by 0.6% over the previous quarter, indicating continued institutional interest despite the stock’s recent price weakness. Institutional investors typically have greater resources to analyse company fundamentals, which may provide some stability in shareholding patterns.
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Mojo Score and Rating Update
Responsive Industries currently holds a Mojo Score of 23.0, categorised as a Strong Sell. This rating was upgraded from Sell on 5 Jan 2026, reflecting a deterioration in the company’s overall quality and market standing. The Market Cap Grade stands at 3, indicating a mid-tier market capitalisation relative to other listed companies.
The downgrade in rating aligns with the company’s recent financial results and price performance, signalling caution in the stock’s near-term outlook. The combination of declining sales, increased interest costs, and subdued price momentum has contributed to this assessment.
Summary of Key Metrics
To summarise, Responsive Industries Ltd’s key financial and market metrics as of 27 Jan 2026 are:
- New 52-week low price: Rs.161
- Six consecutive days of price decline, totalling -12.41%
- Net sales for latest quarter: Rs.313.75 crores, down 12.6%
- Operating profit to interest ratio: 10.88 times (lowest recent level)
- Interest expense: Rs.7.04 crores (highest recent level)
- Return on capital employed (ROCE): 13.9%
- Enterprise value to capital employed: 2.7
- One-year stock return: -32.17% versus Sensex +8.57%
- PEG ratio: 2.5
- Debt to EBITDA ratio: 1.02 times
- Institutional holdings: 34.51%, increased by 0.6% over last quarter
- Mojo Score: 23.0 (Strong Sell), upgraded from Sell on 5 Jan 2026
The stock’s current valuation and financial profile reflect a complex picture of challenges and strengths within the company’s fundamentals and market positioning.
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