1. At a Glance
Responsive Industries is the company your flooring contractor worships and your hospital janitor unknowingly loves. From making synthetic leather for your fake “Gucci” wallet to vinyl sheets for your friendly neighbourhood Vande Bharat train, this ₹5,681 Cr market-cap beast has quietly turned into India’s PVC mafia don. And guess what? They doubled operating margins from 11% to 22% in FY24 – proof that selling better floors is apparently more profitable than selling better cars.
2. Introduction
Let’s set the scene: 1982. While Bollywood was busy makingDisco Dancer, Responsive was busy laying floors. Fast forward four decades, and the company is now India’s largest vinyl flooring manufacturer and among the top five globally. Yes, globally – meaning their floors might already be under your feet in Qatar University, American School of Bombay, or your local railway coach.
This is a company that services 25 industries, supplies to 70+ countries, and has 300 international distributors. Think of them as the Ambanis of PVC – except instead of oil, it’s vinyl planks, synthetic leather, ropes, and waterproof membranes. Basically, if it bends, stretches, or sticks, chances are it’s made by Responsive.
The fun bit? Despite all this reach, investors have been whiplashed. Over the last one year, the stock is down 31% – which means Mr. Market is basically saying: “Nice floors, but can you stop tripping over your own balance sheet?”
3. Business Model (WTF Do They Even Do?)
Responsive Industries runs on one simple mantra: “If it can be rolled, stretched, or polished, we’ll make it.”
- Luxury Vinyl Planks (LVP):The crown jewel. Used in malls, hospitals, offices, and your posh uncle’s 3BHK. These are marketed as “luxury”, but let’s be honest – they’re basically fancy plastic.
- Synthetic Leather:Powering your cheap “leather” sofa, bus seats, and maybe that suspicious jacket from Linking Road.
- Synthetic Ropes & Waterproof Membranes:From agriculture to aquaculture (post Axiom Cordages merger), their ropes now also support fish farms. Yes, they literally tied up with seafood.
- Resilient Vinyl Sheets:Hospitals, railways, classrooms – anywhere people spill things and someone has to mop.
What makes them sticky (pun intended) is capacity. At Boisar (Maharashtra), they churn out 10,000 MT/month: 6,000 MT flooring, 2,000 MT leather, 2,000 MT ropes. With this, they don’t just sell products, they sell “PVC lifestyle solutions” – which sounds fancier than it should.
And oh, they aren’t shy about capex. In FY24 alone, ₹180 Cr was splashed on machinery upgrades –
because nothing screams sexy like upgraded flooring tech.
4. Financials Overview
| Metric | Latest Qtr (Q1 FY26) | YoY Qtr (Q1 FY25) | Prev Qtr (Q4 FY25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | ₹339 Cr | ₹320 Cr | ₹381 Cr | 5.9% | -11.0% |
| EBITDA | ₹73 Cr | ₹71 Cr | ₹79 Cr | 2.8% | -7.6% |
| PAT | ₹50 Cr | ₹48 Cr | ₹54 Cr | 4.2% | -7.4% |
| EPS (₹) | 1.87 | 1.81 | 2.03 | 3.3% | -7.9% |
Annualised EPS = ₹1.87 × 4 =₹7.48P/E = CMP ₹213 ÷ 7.48 ≈28.4x
Verdict: Financial treadmill. Revenues jogging, profits panting, margins steady. Market’s still charging gym-level subscription fees (28x P/E) for a company that’s sweating hard to stay relevant.
5. Valuation (Fair Value RANGE only)
- P/E Method:EPS ₹7.5 × Fair P/E range (20x–25x) = ₹150 – ₹188
- EV/EBITDA Method:EV/EBITDA 19.4x vs fair 14–16x. With EBITDA ~₹306 Cr, EV range = ₹4,284–₹4,896 Cr → FV per share = ₹160 – ₹185
- DCF (assume 10% growth, 12% discount, 5-year horizon):FV ~₹170 – ₹200
Fair Value Range: ₹160 – ₹200“This FV range is for educational purposes only and is not investment advice.”
6. What’s Cooking – News, Triggers, Drama
- Indian Railways Love Story:Orders for Vande Bharat and Garib Rath flooring. Because what’s a luxury train without luxury vinyl?
- Retail Expansion:100 experience centres + 2,500 stores planned. Basically, turning vinyl into the next Bata.
- Amalgamation Fun:Axiom Cordages merger → new ropes for aquaculture. From tying cattle to tying fish – true diversification.
- New Launches:Interlocking tiles with wood/stone/carpet look. Expect your neighbour to now flex “wooden flooring” that’s actually
