Responsive Industries Ltd Falls to 52-Week Low of Rs.168.15 Amidst Continued Downtrend

Stock Price Movement and Market Context

On 23 Jan 2026, Responsive Industries Ltd’s share price declined by 1.17%, closing at Rs.168.15, the lowest level recorded in the past year. This drop extends a losing streak spanning five consecutive trading sessions, during which the stock has shed approximately 8.34% of its value. The stock’s performance today also lagged behind its sector benchmark by 0.41%, signalling relative weakness within its industry group.

The broader market environment was similarly subdued, with the Sensex opening flat but eventually falling by 283.71 points, or 0.31%, to close at 82,052.23. Notably, the Sensex is trading below its 50-day moving average, though the 50-day average remains above the 200-day moving average, indicating mixed signals for the market overall.

Responsive Industries Ltd’s share price is currently trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — underscoring the prevailing bearish momentum. The stock’s 52-week high was Rs.264, highlighting a steep decline of nearly 36.3% from that peak.

Financial Performance and Valuation Metrics

The company’s recent quarterly results have contributed to the subdued market sentiment. Net sales for the quarter stood at Rs.313.75 crores, reflecting a decline of 12.6% compared to the average of the preceding 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 quarters.

Despite these headwinds, the company’s return on capital employed (ROCE) remains at a moderate 13.9%. However, the valuation appears expensive relative to capital employed, with an enterprise value to capital employed ratio of 2.9. This contrasts with the company’s peers, where Responsive Industries Ltd is trading at a discount compared to their average historical valuations.

Over the past year, the stock has generated a negative return of 35.63%, significantly underperforming the Sensex, which posted a positive return of 7.18% over the same period. Interestingly, the company’s profits have increased by 8.6% during this timeframe, resulting in a price/earnings to growth (PEG) ratio of 2.6, which suggests that the stock’s price decline is not fully aligned with its earnings growth.

Long-Term and Sectoral Performance

Responsive Industries Ltd has demonstrated below-par performance not only in the near term but also over longer periods. The stock has underperformed the BSE500 index over the last three years, one year, and three months. This persistent underperformance highlights challenges in maintaining market confidence despite some positive financial indicators.

Within the Furniture and Home Furnishing sector, the company’s relative weakness is evident as it trails sector averages in price appreciation and momentum. The stock’s Mojo Score currently stands at 23.0, with a Mojo Grade of Strong Sell, downgraded from Sell on 5 Jan 2026. The market capitalisation grade is rated at 3, reflecting mid-tier market cap status.

Debt and Institutional Holding Profile

On a positive note, Responsive Industries Ltd maintains a strong ability to service its debt obligations, with a low Debt to EBITDA ratio of 1.02 times. This indicates manageable leverage levels and a stable financial structure in terms of debt servicing capacity.

Institutional investors hold a significant stake in the company, accounting for 34.51% of shareholdings. This group has increased its holdings by 0.6% over the previous quarter, suggesting continued interest from entities with substantial analytical resources and long-term perspectives.

Summary of Key Metrics

To summarise, Responsive Industries Ltd’s recent stock price decline to Rs.168.15 marks a significant 52-week low, reflecting a combination of subdued sales, increased interest expenses, and valuation concerns. The company’s operating profit growth rate remains healthy at an annualised 69.07%, yet this has not translated into positive stock performance.

The stock’s underperformance relative to the Sensex and its sector, combined with a downgrade to a Strong Sell grade, highlights the cautious stance adopted by the market. Nevertheless, the company’s manageable debt levels and stable institutional ownership provide some balance to the overall picture.

Investors and market participants will continue to monitor the stock’s price action and financial disclosures closely as the company navigates this challenging phase within the Furniture and Home Furnishing sector.

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