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
-22.19%
-0.94
41.54%
Sensex
-4.3%
0.44
11.83%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
14.48%
EBIT Growth (5y)
13.05%
EBIT to Interest (avg)
6.10
Debt to EBITDA (avg)
1.84
Net Debt to Equity (avg)
1.05
Sales to Capital Employed (avg)
1.53
Tax Ratio
25.70%
Dividend Payout Ratio
73.16%
Pledged Shares
0
Institutional Holding
14.77%
ROCE (avg)
20.90%
ROE (avg)
21.73%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
30
Industry P/E
47
Price to Book Value
7.38
EV to EBIT
22.97
EV to EBITDA
18.00
EV to Capital Employed
4.11
EV to Sales
3.22
PEG Ratio
1.19
Dividend Yield
0.21%
ROCE (Latest)
15.36%
ROE (Latest)
21.08%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend21What is working for the Company
NET SALES(Q)
Highest at Rs 786.55 cr
PBDIT(Q)
Highest at Rs 170.58 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 21.69%
PBT LESS OI(Q)
Highest at Rs 129.97 cr.
PAT(Q)
Highest at Rs 104.53 cr.
EPS(Q)
Highest at Rs 1.89
-6What is not working for the Company
INTEREST(9M)
At Rs 53.17 cr has Grown at 31.32%
ROCE(HY)
Lowest at 17.42%
DEBT-EQUITY RATIO(HY)
Highest at 1.08 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 10.68 times
Loading Valuation Snapshot...
Here's what is working for Redtape
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 129.97 cr has Grown at 152.4% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 51.49 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 104.53 cr has Grown at 131.4% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 45.17 CrMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Net Sales - Quarterly
At Rs 786.55 cr has Grown at 48.2% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 530.75 CrMOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Net Sales - Quarterly
Highest at Rs 786.55 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 170.58 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 21.69%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 129.97 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 104.53 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 1.89
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Here's what is not working for Redtape
Interest - Nine Monthly
At Rs 53.17 cr has Grown at 31.32%
over preceding nine months periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Debt-Equity Ratio - Half Yearly
Highest at 1.08 times
in the last five half yearly periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Debtors Turnover Ratio- Half Yearly
Lowest at 10.68 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
