Responsive Industries' shares soar 20% on Indian Railways contract win

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Responsive Industries' shares soar 20% on Indian Railways contract win

Responsive Industries' shares soar 20% on Indian Railways contract win

Industry News
Sep 12,23

This remarkable surge was attributed to the company securing a significant contract from the Indian Railways for the 'Garib Rath' initiative.

Responsive Industries' shares soar 20% on Indian Railways contract win

Responsive Industries achieved a new all-time high with its shares surging by 20% to reach Rs 307 on the BSE during intra-day trading on Thursday. This remarkable surge was attributed to the company securing a significant contract from the Indian Railways for the 'Garib Rath' initiative.

While the precise value of the contract remained undisclosed, Responsive Industries proudly highlighted its accomplishment of securing contracts for two of India's most prestigious rail projects: Garib Rath and Vande Bharat. The company emphasised its unwavering dedication to quality and its unmatched expertise in an official exchange filing made.

The company expressed, "Each partnership aligns perfectly with our vision of combining innovation with the broader goals of enhancing India's rail connectivity."

Responsive Industries' shares continued their strong performance, trading approximately 18% higher at Rs 301, outperforming the benchmark S&P BSE Sensex, which registered a modest 0.13% gain at 65,965.74 levels. Notably, a total of 4.1 million shares had already changed hands on both the NSE and BSE.

Over the last three months, Responsive Industries, a manufacturer specialising in vinyl flooring, SPC, LVT, synthetic leather, and waterproofing membranes, witnessed an impressive surge of nearly 50%, contrasting with the benchmark Sensex index's 4.3% gain. Throughout the current calendar year, the stock demonstrated exceptional growth, surging by 118%, while the benchmark managed only an 8% gain.

India is currently undergoing an unprecedented phase of urbanisation, with a substantial population shift from rural to urban areas. Additionally, rapid economic growth has resulted in increased disposable income, particularly among the middle-class segment. This has led to a heightened demand for improved living standards and housing facilities.

Moreover, the thriving construction industry is driving a substantial need for durable, stylish, and cost-effective flooring solutions, particularly vinyl flooring. The Indian vinyl flooring market is expected to exhibit a Compound Annual Growth Rate (CAGR) of 6.7% during the period from 2023 to 2028. This growth is primarily attributed to the development of modern housing facilities and the introduction of aesthetically pleasing and textured vinyl flooring.

Responsive Industries' increased capacity utilisation, robust product development, and strategic marketing efforts have positioned the company optimistically for future growth.

In the first quarter of the fiscal year 2024 (Q1-FY24), Responsive Industries reported a net profit of Rs 5.91 crore, a significant increase from Rs 1.79 crore in the same quarter of the previous fiscal year (Q1-FY23) and Rs 2.72 crore in the last quarter of the prior fiscal year (Q4-FY23).

The company's revenue from operations also demonstrated robust growth, reaching Rs 166.77 crore, up from Rs 153.57 crore YoY and Rs 141.16 crore QoQ.

Source: Business Standard