Recent Price Movement and Market Performance
Responsive Industries has underperformed significantly in the short term, with a one-week return of -7.5% compared to the Sensex’s modest gain of 0.79%. Although the stock posted a positive return of 2.83% over the past month, this is only marginally better than the Sensex’s 0.95% rise. More concerning is the stock’s year-to-date performance, which shows a steep decline of 23.92%, starkly contrasting with the Sensex’s 9.08% gain. Over the last year, the stock has lost 24.26%, while the benchmark index has appreciated by 10.47%. Even over a three-year horizon, Responsive Industries’ 33.05% return lags behind the Sensex’s 39.39%, and the five-year return of 18.44% pales in comparison to the Sensex’s 94.23%.
On the day of the latest decline, the stock underperformed its sector by 2.59%, hitting an intraday low of ₹189.20. It is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a bearish technical outlook. Additionally, investor participation appears to be waning, with delivery volumes on 20 Nov falling by 3.37% compared to the five-day average, indicating reduced buying interest.
Transformation in full progress! This Micro Cap from Auto Ancillary just achieved sustainable profitability after tough times. Be early to witness this powerful comeback story!
- - Sustainable profitability reached
- - Post-turnaround strength
- - Comeback story unfolding
Fundamental Challenges Weighing on the Stock
Despite some positive indicators, such as a strong ability to service debt with a low Debt to EBITDA ratio of 1.02 times and healthy long-term operating profit growth at an annual rate of 69.07%, the company’s recent financial results have raised concerns. The September 2025 quarter revealed troubling metrics: operating profit to interest ratio dropped to a low of 10.88 times, net sales declined to ₹313.75 crore—the lowest in recent periods—and interest expenses surged to ₹7.04 crore, the highest recorded.
These results suggest margin pressures and rising financing costs, which have likely contributed to investor caution. Furthermore, the company’s return on capital employed (ROCE) stands at 13.9%, and it carries an enterprise value to capital employed ratio of 3.2, indicating a relatively expensive valuation. Although the stock trades at a discount compared to its peers’ historical averages, its price-to-earnings growth (PEG) ratio of 2.9 points to stretched valuations relative to earnings growth.
Institutional investors hold a significant 33.91% stake, reflecting confidence from sophisticated market participants. However, even this backing has not prevented the stock’s underperformance, which extends beyond the recent quarter. Over the past year, profits have increased by 8.6%, yet the stock’s price has declined by 24.26%, highlighting a disconnect between earnings growth and market valuation.
Long-Term Underperformance and Investor Sentiment
Responsive Industries has consistently lagged behind broader market indices and sector benchmarks over multiple time frames. Its underperformance relative to the BSE500 index over the last three years, one year, and three months underscores persistent challenges in delivering shareholder value. The ongoing six-day decline and falling delivery volumes suggest that investor sentiment remains weak, with market participants possibly awaiting clearer signs of operational turnaround or improved financial metrics before committing fresh capital.
Holding Responsive Ind from Furniture, Home Furnishing? See if there's a smarter choice! SwitchER compares it with peers and suggests superior options across market caps and sectors!
- - Peer comparison ready
- - Superior options identified
- - Cross market-cap analysis
Conclusion
The decline in Responsive Industries Ltd’s share price on 21-Nov and over the preceding days is primarily driven by disappointing quarterly results marked by lower sales, higher interest costs, and a reduced operating profit to interest ratio. These factors, combined with the stock’s underperformance relative to key market indices and technical indicators signalling weakness, have dampened investor confidence. While the company demonstrates strong debt servicing capability and long-term profit growth, its expensive valuation and recent financial setbacks have weighed heavily on the stock’s performance. Investors are likely to remain cautious until the company can deliver more consistent earnings growth and improve its operational metrics.
Limited Time Only! Subscribe for Rs. 12,999 and get 1 Year of MojoOne + an Additional Year Completely FREE. Don't miss out on this exclusive offer. Claim Your Free Year →
