Responsive Industries, a company that makes PVC products like vinyl tiles, has seen its stock rise a lot lately. A brokerage firm thinks it’s a good idea to buy the stock because of the long-term growth potential in vinyl tiles.
They say that because the US put a 25% tax on Chinese products, it’s creating more demand for vinyl flooring from India. This is good news for Responsive Industries because they make a lot of vinyl flooring and are well-known in the US market.
The company also sells its products in Southeast Asia, the Asia Pacific, and South America. This means they have a big reach and can sell to many different places.
Saudi Arabia is also looking to improve its infrastructure, which means they need more vinyl flooring. Because it’s expensive to buy from Europe and America, they’re turning to India for vinyl flooring.
Rising Demand in India
In India itself, there’s a growing demand for vinyl flooring because more people are moving to cities, the real estate market is picking up, and people are interested in decorating their homes with trendy vinyl flooring.
Responsive Industries doesn’t just make flooring. They also make things like mooring ropes, artificial leather, and waterproofing solutions for tunnels and roads. These are all things that are in demand and can help the company grow.
With projects like upgrading standard coaches to Vande Bharat and building more metro rails, there’s going to be more demand for Responsive Industries’ products. Plus, as more cities switch to electric buses, they’ll need vinyl flooring for those too.
The company has good relationships with big clients like Indian Railways, Tata Motors, and Mercedes-Benz, and they have long-term contracts with them.
Overall, there are a lot of reasons to think Responsive Industries is a good investment right now.
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