Responsive Industries shares jumped over 145% in 14 months; should you invest now?
Responsive Industries, a leading manufacturer of PVC products with a 'buy' rating and a 24-month target price of ₹436 apiece, citing long-term growth opportunities in the vinyl tiles. The target price implies an upside of 44% from the stock's latest closing price of ₹302.
It noted that the imposition of a 25% import duty on Chinese products in the US, coupled with rising production costs in Europe and America, is driving India's export of vinyl flooring.The global LVT market, valued at $18.8 billion in CY24, is projected to expand to $35.9 billion by CY29. Within this market, the US currently contributes $2.7–3.0 billion in sales, accounting for a 14.4% global share, and is expected to nearly double to $7.2 billion by CY27.Also Read: Nifty Metal skyrockets nearly 1,100 points in just 9 sessions, gains over 24% in 2024 – here's whyGiven that the US market predominantly relies on Chinese imports, the imposition of a 25% duty by the US government on imports from China has created favorable conditions for Indian manufacturers to capitalise on lucrative opportunities in the US market, said the brokerage.
The brokerage emphasised that Responsive Industries, as a leading and fully integrated producer of vinyl flooring, holds a strong position in the US market and is well-positioned to capitalise on the growing trend. Additionally, Responsive Industries operates an offshore facility that caters to markets in Southeast Asia, the Asia Pacific, and South America, further expanding its market reach and potential.Furthermore, the brokerage highlighted Saudi Arabia's efforts to elevate its infrastructure to align with Dubai's standards, aimed at attracting global investments, which will drive up demand for vinyl flooring solutions in
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