Shares of this multibagger stock under the ‘small-cap’ category spiked 18 percent on Thursday after securing an order from Indian Railways. During the last month, the company’s stock rose more than 40 percent.
With a market capitalization of Rs 8,039.41 crores, the stocks of Responsive Industries Limited started their trading session on Thursday at Rs 280.65 and currently trade at Rs 301.20, gaining a whopping 18 percent as compared to the previous closing price of Rs 255.85 apiece.
Such sharp stock price movements were observed after the company, through a regulatory filing with the Bombay Stock Exchange dated 6th September 2023, announced the receipt of an order from the Indian Railways.
The company secured the order pertaining to the iconic “Garib Rath” initiative, post the recent success of the ‘Vande Bharat’ project. The amount pertaining to the above-mentioned order is not known yet.
Having a glance at the consolidated financials updates during the recent quarters, the operating revenues as well as after-tax profits of the company showed decent growth with the former increasing from Rs 237 crores during Q4FY22-23 to Rs 263 crores during Q1FY23-24, and, the latter taking a shift from Rs 22 crores to Rs 30 crores during the same time horizon.
Keeping a purview of one year, the company’s stock has proven to deliver multibagger returns of around 105 percent to its stakeholders. The same means that if someone had invested Rs 1 Lakh in the company’s stock, it would have converted to Rs 2.05 Lakhs within a period of one year.
According to the shareholding pattern data available for the June 2023 quarter, the company’s Promoters hold a 58.94 percent stake, and the Foreign Institutional Investors (FIIs) hold a huge stake of 35.67 percent in the company.
Responsive Industries Limited is engaged in the business of manufacturing as well as supplying PVC-based, i.e., products made with the aid of ‘polyvinyl chloride’. Some of the products present in the company’s portfolio include Leather Cloth, Soft Sheetings, etc.
Written by Amit Madnani
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