Responsive Industries shares jump 7% on selection as partner for some projects in Ayodhya

Shares of small-cap firm Responsive Industries Ltd rose sharply in Wednesday's trading session. The stock surged 7.19 per cent to hit a day high of Rs 324.30. At this price, the scrip was down 11.10 per cent from its one-year high of Rs 364.80, a level seen on September 29 last year. Despite the said drop, the multibagger counter has gained more than 135 per cent in a year.

Today's jump in the share price came after the company, in a BSE filing, said it has been selected as a key partner for several prestigious hospitality and other projects currently under construction in Ayodhya. Responsive mentioned that it anticipates a significant positive impact on its revenue as a result of these partnerships.

In another filling to the exchange, it has informed that the company's Board of Directors are scheduled to meet on February 5 to consider and approve the December quarter results.

On technical setup, the stock was seen trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 58.71. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The company's stock has a price-to-equity (P/E) ratio of 434.05 against a price-to-book (P/B) value of 11.61.

"The stock may see Rs 335 level in the near term. Keep stop loss placed at Rs 315," said DRS Finvest founder Ravi Singh.

The company is a leading manufacturer of PVC products, including Luxury Vinyl Plank (LVP), which is a waterproof flooring solution.

According to Responsive, the global vinyl flooring market is valued at $45.1 billion in 2022 and growing at a CAGR of 12 per cent. The firm also stated that the market is projected to reach $65.6 billion by 2027.

(Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.)

Also read: Salasar Techno shares rise 7% to hit new highs as company shares PSU order updates