Responsive Industries Ltd

Responsive Industries Ltd maintains a strong liquidity position, with a current ratio of 3.48, indicating the company can cover its short-term liabilities more than three times over. The company's liquidity_fpt score is in the upper quartile of its industry, supported by a free cash flow of INR 2.14 billion and operating cash flow of INR 754 million. However, the company has a net cash position that is negative after subtracting total debt, which introduces some liquidity risk. Profitability metrics show that Responsive Industries Ltd is outperforming the median for its industry. The company's return on equity (ROE) of 14.78% and return on assets (ROA) of 11.44% are both above the industry median, indicating efficient use of equity and assets to generate returns. The gross profit margin of 27.7% and operating margin of 15.9% also suggest strong cost control and pricing power. The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of diversification increases exposure to regional economic fluctuations and regulatory changes. The absence of segment-specific revenue breakdowns in the latest financials limits visibility into the drivers of growth or risk. Looking ahead, Responsive Industries Ltd is projected to grow revenue by 8.2% in the current fiscal year and 5.4% in the next fiscal year, based on the latest outlook data. This growth is supported by a capital expenditure of INR 523 million, which suggests the company is investing in capacity expansion or operational efficiency. The company faces moderate risk from liquidity constraints and potential dilution. While the dilution risk is currently low, the company has a low dilution potential based on its shares outstanding and no recent equity issuance. However, the risk assessment highlights a key flag: net cash is negative after subtracting total debt, which could pressure the company to raise additional capital in the near term. Recent filings and transcripts do not indicate any major strategic shifts or operational disruptions. The company's ESG profile is mixed, with a strong governance score of 45.86 and a high ESG controversies score of 100.00, suggesting no major controversies but also no significant ESG leadership.