If you’re on the lookout for a solid investment opportunity, Responsive Industries Limited is worth considering. The company’s stock has been gaining attention from brokerage firms, which are optimistic about its growth prospects. Responsive Industries is one of India’s largest suppliers of PVC membranes and synthetic products, playing a crucial role in numerous government infrastructure projects.
On September 17, the company’s share price witnessed a slight increase of 0.36%, closing at ₹294.40 on the BSE. With a market cap of ₹7,848 crore, the stock’s 52-week high stands at ₹364.80, while its 52-week low is ₹255.25.
Government Projects Boost Business Outlook
The company’s positive outlook stems from recent announcements by the Ministry of Road Transport and Highways (MoRTH), which has revealed plans to develop 75 tunnel projects across India. These projects, aimed at improving the nation’s infrastructure and connectivity, represent a significant investment of ₹1 lakh crore.
Responsive Industries is well-positioned to be a key supplier for these projects, providing PVC membranes, which are crucial for ensuring the structural integrity of tunnels. With a strong track record of involvement in major infrastructure projects like the Rishikesh-Karnprayag Rail Link and the Rangpo Tunnel Project in Sikkim, the company is confident of significant business growth. The company expressed this optimism in an exchange filing on September 12.
Brokerages Are Bullish on Responsive Industries’ Stock
Brokerage firm Ventura Securities has issued an encouraging research report, predicting a strong rally in Responsive Industries’ shares. According to Ventura, the stock could rise by as much as 48% over the next two years, with a target price of ₹436 set for May 2024. Given the stock’s current price, there is significant potential for long-term gains. The brokerage expects this target to be met within the next 24 months.
Strong Financial Performance in FY25
The company’s financial results for the first quarter of FY25 have been equally promising. Responsive Industries reported a revenue growth of 21.18%, reaching ₹321.92 crore in the June quarter. Every quarter, the company’s revenue increased by 8.32%.
In terms of profit, the company saw a significant jump, with net profit surging by 63.89% compared to the same period last year, reaching ₹48.38 crore. Additionally, the company’s net profit margin rose by 35.24% from the previous year to 15.03% in the June quarter.
With such solid financial performance and its involvement in vital infrastructure projects, Responsive Industries has emerged as a strong player in the market, making it a stock to watch for potential investors. The company’s ability to tap into government initiatives and maintain robust revenue growth positions it for continued success.
Source: Moneycontrol.com
(Always consult with a certified financial expert before making investment decisions.)
