Check Before You Invest : Redtape Ltd

Q: Which industry/sub-sector does Redtape Ltd belong to?

Redtape Ltd belongs to the Retail sector, operating specifically within the Retailing segment.

Q: Is Redtape Ltd a good quality company?

Redtape Ltd is a weak quality company, based on a inconsistent multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Redtape Ltd undervalued or overvalued?

Redtape Ltd appears Undervalued, as its key valuation ratios are lower than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 31.28, Historic Median: 49.55. Price to Book, Current: 7.37, Historic Median: 12.37. Price to Sales, Current: 3.17, Historic Median: 4.49. EV to EBITDA, Current: 16.83, Historic Median: 27.47

Q: Is Redtape Ltd a good buy now?

Redtape Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Q: Gross Profit margin of Redtape Ltd?

Redtape Ltd Gross profit margin which is the profit after deduction of direct costs, is 16.4% for FY-2025, which is above its 3-year median of 15.6%, indicating increasing margins.

Q: Operating Profit Margin of Redtape Ltd?

Redtape Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 16.8% for FY-2025, which is in line with its 3-year median of 16.8% indicating stable margins.

Q: Net Profit Margin of Redtape Ltd?

Redtape Ltd Net Profit Margin is 9.14% for FY-2025, is in line with its 3-year median of 9.27%, indicating stable margins. Profitability Metrics. Gross Profit Margin (%), Current: 16.4, Historic Median: 15.6. Operating Profit Margin (%), Current: 16.8, Historic Median: 16.8. Net Profit Margin (%), Current: 9.14, Historic Median: 9.27

Q: Return on Asset of Redtape Ltd?

Redtape Ltd Return on Asset is 9.44%, which is below its 3-year historical median of 11.9%, indicating deteriorated asset utilization efficiency.

Q: Return on capital employed (ROCE) of Redtape Ltd?

Redtape Ltd Return on capital employed is 30.97% for FY-2025, which is below its 3-year historical median of 39.39%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q: Return on Equity (ROE) of Redtape Ltd?

Redtape Ltd Return on equity is 25.98% for FY-2025, which is below its 3-year historical median of 30.92%, indicating the business is making worse use of its shareholders capital.

Check Before You Invest : Redtape Ltd

BSE: 543957 NSE: REDTAPE ISIN: INE0LXT01019

| Sector: Retail | Industry: Retailing

Snapshot

Q.1 Which industry/sub-sector does Redtape Ltd belong to?

Redtape Ltd belongs to the Retail sector, operating specifically within the Retailing segment.

Q.2 Is Redtape Ltd a good quality company?

Redtape Ltd is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Redtape Ltd undervalued or overvalued?

Redtape Ltd appears Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	3-year Historic Median
Price to Earnings	31.28	49.55
Price to Book	7.37	12.37
Price to Sales	3.17	4.49
EV to EBITDA	16.83	27.47

Q.4 Is Redtape Ltd a good buy now?

Redtape Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

Q.1 Gross Profit margin of Redtape Ltd?

Redtape Ltd Gross profit margin which is the profit after deduction of direct costs, is 16.4% for FY-2025, which is above its 3-year median of 15.6%, indicating increasing margins.

Q.2 Operating Profit Margin of Redtape Ltd?

Redtape Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 16.8% for FY-2025, which is in line with its 3-year median of 16.8% indicating stable margins.

Q.3 Net Profit Margin of Redtape Ltd?

Redtape Ltd Net Profit Margin is 9.14% for FY-2025, is in line with its 3-year median of 9.27%, indicating stable margins.

	Current Level	3-year Historic Median
Gross Profit Margin (%)	16.4	15.6
Operating Profit Margin (%)	16.8	16.8
Net Profit Margin (%)	9.14	9.27

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of Redtape Ltd?

Redtape Ltd Return on Asset is 9.44%, which is below its 3-year historical median of 11.9%, indicating deteriorated asset utilization efficiency.

Q.5 Return on capital employed (ROCE) of Redtape Ltd?

Redtape Ltd Return on capital employed is 30.97% for FY-2025, which is below its 3-year historical median of 39.39%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.6 Return on Equity (ROE) of Redtape Ltd?

Redtape Ltd Return on equity is 25.98% for FY-2025, which is below its 3-year historical median of 30.92%, indicating the business is making worse use of its shareholders capital.

Q.7 Cash conversion cycle of Redtape Ltd?

Redtape Ltd Cash conversion cycle is 132 days, above its 3-year historical median of 89 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	3-year Historic Median
Asset Turnover (x)	1.03	1.28
ROE (%)	25.98	30.92
ROCE (%)	30.97	39.39
Cash Conversion Cycle	132 days	89 days

C: How much debt does the business have and is it at a sustainable level?

Q.8 Debt to Equity ratio of Redtape Ltd?

Redtape Ltd Debt-to-Equity ratio is 0.46, which is above the industry average of 0.25, indicating higher debt levels in the industry.

Q.9 Debt to cash flow from operations of Redtape Ltd?

Redtape Ltd Debt to cash flow from operations is -122.38, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Redtape Ltd?

Q.1 Promoter shareholding and pledge status of Redtape Ltd?

Promoters hold 71.83% of the Redtape Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Redtape Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Redtape Ltd vs industry peers?

Redtape Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 13.55%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	3-year Industry Median
Revenue Growth (%)	-	13.6
Gross Profit Growth (%)	15.4	29.3
Operating Profit Growth (%)	9.4	36.6
Net Profit Growth (%)	8.2	44.2

Operating Efficiency

	Current Level	3-year Industry Median
Asset Turnover (x)	1.03	1.39
ROE (%)	25.98	10.52
ROCE (%)	30.97	16.8
Cash Conversion Cycle (days)	132	43

Valuation & price assessment

Q.1 Stock return of Redtape Ltd over the last decade?

Over the last 1 year(s), the stock has delivered a CAGR of -6.9% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	-6.9%

Q.2 Valuation ratios of Redtape Ltd vs historical?

The current P/E ratio of 31.28 is lower than its historical median of 49.55, indicating that the stock is trading below its historical average valuation.

Q.3 How do the current valuation ratios compare with 3-year historical median and industry numbers?

Valuation Ratios	Current	3-year Historic Median	3-year Industry Median
Price to Earnings	31.28	49.55	36.60
Price to Book	7.37	12.37	3.14
Price to Sales	3.17	4.49	1.33
EV to EBITDA	16.83	27.47	13.63

Check more companies

1. Metro Brands

2. Aditya Birla Life

3. Medplus Health Serv.

4. Aditya Vision

5. V2 Retail

6. Redtape

7. Aditya Birla Fashion

8. PN Gadgil Jewellers

9. Ethos Ltd.

10. Arvind Fashions

Check trending companies

1. Nuvoco Vistas Corporation Ltd.

2. Adani Power Ltd.

3. Adani Ports and Special Economic Zone Ltd.

4. ACC Ltd.

5. Gravita India Ltd.

Check Before You Invest : Redtape Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

About MoneyWorks4Me

Our Vision

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

Name of the IA registered with SEBI:	The Alchemists Ark Pvt. Ltd.
Logo:
Trade/Brand Name of IA:	MoneyWorks4Me Investment Advisers
Brand Logo:
SEBI Registration Number:	INA000013323 Validity – May 16, 2019 – Perpetual
Registration:	Non-Individual
BSE Enlistment No:	1187
Address:	B-101, Signet Corner Building, Balewadi Phata, Baner, Pune, Maharashtra 411045
Compliance officer Details:	Name: Shrikant Jagtap Email: shrikant.jagtap@moneyworks4me.com Telephone: +919860359463 Address: Same as IA
Grievance Officer Details:	Name: Mukta Vaze Email: mukta.vaze@moneyworks4me.com Telephone: +91 98609 19463 Address: Same as IA
Principal Officer Details:	Name: Atharva Bhide Email: atharva.bhide@moneyworks4me.com Telephone: +91 91758 99463 Address: Same as IA
Standard Warning:	Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Disclaimer:	Registration granted by SEBI, enlistment with exchange and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.