ScoreWhy is Redtape Ltd ?
1
Poor long term growth as Operating profit has grown by an annual rate 7.24% of over the last 5 years
2
The company has declared Negative results for the last 3 consecutive quarters
- OPERATING CF(Y) Lowest at Rs 4.24 Cr
- PAT(Q) At Rs 27.54 cr has Fallen at -38.2% (vs previous 4Q average)
- ROCE(HY) Lowest at 17.42%
3
With ROCE of 15.4, it has a Expensive valuation with a 4.6 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -39.04%, its profits have risen by 14.7% ; the PEG ratio of the company is 2.7
4
Below par performance in long term as well as near term
- Along with generating -39.04% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Redtape should be less than 10%
- Overall Portfolio exposure to Footwear should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Footwear)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Redtape for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Redtape
6.06%
-0.94
41.54%
Sensex
-5.16%
0.44
11.83%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
18.10%
EBIT Growth (5y)
16.97%
EBIT to Interest (avg)
6.95
Debt to EBITDA (avg)
1.91
Net Debt to Equity (avg)
0.70
Sales to Capital Employed (avg)
1.51
Tax Ratio
25.80%
Dividend Payout Ratio
73.16%
Pledged Shares
0
Institutional Holding
14.81%
ROCE (avg)
19.91%
ROE (avg)
24.09%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
31
Industry P/E
47
Price to Book Value
7.21
EV to EBIT
25.23
EV to EBITDA
19.79
EV to Capital Employed
4.66
EV to Sales
3.34
PEG Ratio
0.74
Dividend Yield
0.18%
ROCE (Latest)
18.48%
ROE (Latest)
23.55%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
Bearish
Bollinger Bands
Mildly Bullish
Bearish
Moving Averages
Bullish (Daily)
KST
Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend20What is working for the Company
PBT LESS OI(Q)
At Rs 74.02 cr has Grown at 59.9% (vs previous 4Q average
DEBT-EQUITY RATIO(HY)
Lowest at 0.71 times
NET SALES(Q)
At Rs 675.51 cr has Grown at 20.1% (vs previous 4Q average
PAT(Q)
At Rs 69.88 cr has Grown at 31.9% (vs previous 4Q average
-1What is not working for the Company
CASH AND CASH EQUIVALENTS(HY)
Lowest at Rs 9.76 cr
Loading Valuation Snapshot...
Here's what is working for Redtape
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 74.02 cr has Grown at 59.9% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 46.28 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Net Sales - Quarterly
At Rs 675.51 cr has Grown at 20.1% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 562.31 CrMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 69.88 cr has Grown at 31.9% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 52.97 CrMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Debt-Equity Ratio - Half Yearly
Lowest at 0.71 times
in the last five half yearly periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Here's what is not working for Redtape
Cash and Cash Equivalents - Half Yearly
Lowest at Rs 9.76 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
