Redtape Limited (REDTAPE) AI Stock Analysis

• Market Cap: ₹64.43B
• Dividend Yield: 0.6%
• Average Volume (3M): 93.48K
• Price to Earnings (P/E): 35.7
• Beta (1Y): 0.66
• Revenue Growth: 7.29%
• EPS Growth: 14.72%
• Country: IN
• Employees: 867
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Specialty Retail
• EPS (TTM): 0.50
• Shares Outstanding: 552,807,600
• 10 Day Avg. Volume: 49,169
• 30 Day Avg. Volume: 93,481
• PEG Ratio: -13.73
• Price to Book (P/B): 10.22
• Price to Sales (P/S): 3.99
• P/FCF Ratio: -45.10
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: ₹144.00 ▲(20.55% Upside)

Redtape Limited's overall stock score is primarily influenced by its strong financial performance, despite challenges in cash flow and leverage. Technical indicators suggest a bearish trend, and the valuation appears high, which could limit upside potential. The lack of earnings call data and corporate events means these factors did not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business model, supporting long-term financial sustainability.

Diverse Revenue Streams

A diverse revenue model mitigates risk and enhances resilience by tapping into multiple high-demand sectors, ensuring steady cash flow.

Strong Operational Performance

High operational efficiency reflects effective cost management and productivity, crucial for maintaining competitive advantages and profitability.

Negative Factors

Increasing Leverage

Rising leverage can strain financial flexibility and increase risk, potentially impacting the company's ability to invest in growth opportunities.

Negative Cash Flow Trend

Negative cash flow may hinder the company's ability to fund operations and growth initiatives, necessitating improved cash management strategies.

Cost Control Challenges

Rising costs can erode profit margins, impacting long-term profitability and competitiveness, requiring strategic cost management efforts.

Redtape Limited Business Overview & Revenue Model

Company Description

Redtape Limited manufactures and sells footwear and clothing for men, women, and kids in India and internationally. It offers footwear, such as sandals, slippers, casuals, shoes, sports shoes, boots, sliders, and flip flops; topwear, including T-shirts, shirts, sweaters, sweatshirts/hoodies, and jackets; jeans and trousers; jeggings and pants; sportswear comprising active T-shirts, shorts, and trackpants/joggers; and briefs and trunks. The company provides tops/tunics, jackets, and kurtas; tights/leggings; trackpants/joggers; and caps, belts, socks, and wallets, as well as gift cards. It operates through retail stores and online channels. The company offers its products under the RedTape, RedTape Athleisure, Mode By RedTape, and Bond Street by RedTape brands. Redtape Limited was founded in 1996 and is based in Noida, India.

How the Company Makes Money

Redtape Limited generates revenue through multiple streams, primarily by offering subscription-based software services and consulting fees. Their key revenue model includes licensing fees for proprietary software solutions, which are designed to improve productivity and efficiency for businesses. Additionally, the company earns income from strategic partnerships with other tech firms, enabling them to bundle services and expand their market reach. Consulting services also contribute significantly to their earnings, as clients seek expert guidance on digital transformation initiatives. Overall, REDTAPE's diverse approach to revenue generation, combined with its focus on high-demand sectors, solidifies its financial sustainability.

Redtape Limited Financial Statement Overview

Summary

Redtape Limited shows strong revenue growth and operational efficiency, but faces challenges with cash flow and increasing leverage. The company should focus on enhancing cash flow stability and managing debt levels to ensure sustainable growth.

Income Statement

Redtape Limited shows a healthy revenue growth with a significant increase from 2024 to 2025. The gross profit margin has been consistent, although a slight dip is seen in 2025. Net profit margin remains robust despite a slight decrease. EBIT and EBITDA margins indicate strong operational performance, though there's a need to control costs to maintain these margins.

Balance Sheet

The company's balance sheet reflects a significant increase in total assets and equity over the years, indicating growth. However, the debt-to-equity ratio has increased, which could be a risk if leverage continues to rise. The equity ratio suggests a stable financial position, but maintaining this balance is crucial to avoid over-leverage.

Cash Flow

Cash flow analysis shows a negative trend in free cash flow, primarily due to high capital expenditures. Operating cash flow has turned negative in the latest period, posing a potential risk to liquidity. Improving cash flow management will be essential to support future growth and operational needs.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	20.50B	20.20B	18.43B	14.68B	3.03B
Gross Profit	9.09B	7.37B	8.94B	6.72B	1.35B
EBITDA	3.83B	3.67B	3.28B	2.48B	472.20M
Net Income	1.78B	1.70B	1.76B	1.42B	290.40M
Balance Sheet
Total Assets	0.00	22.24B	15.88B	12.39B	63.20K
Cash, Cash Equivalents and Short-Term Investments	145.70M	145.70M	210.40M	261.80M	142.60M
Total Debt	0.00	7.24B	4.80B	2.60B	285.00M
Total Liabilities	-7.89B	14.35B	9.40B	7.62B	5.00K
Stockholders Equity	7.89B	7.89B	6.48B	4.77B	3.36B
Cash Flow
Free Cash Flow	0.00	-1.79B	-351.40M	-189.00M	-1.48B
Operating Cash Flow	0.00	-76.10M	843.70M	1.27B	-36.80K
Investing Cash Flow	0.00	-1.07B	-1.16B	-1.27B	-1.48B
Financing Cash Flow	0.00	1.20B	261.00M	124.30M	-132.30M

Redtape Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 119.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:REDTAPE, the sentiment is Negative. The current price of 119.45 is below the 20-day moving average (MA) of 122.66, below the 50-day MA of 128.11, and below the 200-day MA of 134.35, indicating a bearish trend. The MACD of -2.58 indicates Positive momentum. The RSI at 28.73 is Positive, neither overbought nor oversold. The STOCH value of 12.36 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:REDTAPE.

Redtape Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAMPUS	73 Outperform	₹77.88B	62.90	―	0.39%	9.42%	27.12%
PGIL	66 Neutral	₹69.63B	26.13	―	0.77%	24.93%	20.57%
MANORAMA	64 Neutral	₹77.99B	45.63	―	0.04%	89.51%	188.01%
TTKPRESTIG	63 Neutral	₹83.64B	76.96	―	0.97%	4.48%	-49.18%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
GALAXYSURF	60 Neutral	₹69.17B	24.15	―	1.07%	22.63%	-8.57%
REDTAPE	58 Neutral	₹64.43B	35.66	―	0.60%	7.29%	14.72%

Redtape Limited Corporate Events

Redtape Limited Closes Trading Window Ahead of December Quarter Results

Redtape Limited has notified the stock exchanges that it is closing its trading window for company securities for all designated persons, including promoters, directors, key managerial personnel, designated employees and connected persons, from 1 January 2026 until 48 hours after the announcement of its unaudited financial results for the quarter and nine months ended 31 December 2025. This move, undertaken in line with SEBI’s Prohibition of Insider Trading Regulations and the company’s internal code of conduct, underscores Redtape’s effort to prevent insider trading, signals that earnings disclosure is approaching, and provides clarity to market participants on when insiders are restricted from trading ahead of a key financial reporting event.

Redtape to Close Trading Window Ahead of December Quarter Results

Redtape Limited has announced that its trading window for dealing in the company’s shares will be closed for designated persons, including promoters, directors, key managerial personnel, designated employees and connected persons, from 1 January 2026 until 48 hours after the release of its unaudited financial results for the quarter and nine months ended 31 December 2025. The move follows regulatory requirements on prevention of insider trading and signals that the company is preparing to publish its next set of financials, with the board meeting date for approval of these results to be communicated later, temporarily restricting insider dealings to protect market integrity and safeguard minority investors ahead of the disclosure.

Redtape Limited Announces Investor Presentation on Q2 Financial Results

Redtape Limited has announced an investor presentation regarding its unaudited financial results for the second quarter and half-year ending September 30, 2025. This presentation is part of an investor meet scheduled for November 17, 2025, and is available on the company’s website. The disclosure aligns with Regulation 30 of SEBI’s Listing Obligations and Disclosure Requirements, indicating transparency and adherence to regulatory standards.

Redtape Limited Announces Investor Presentation on Financial Results

Redtape Limited has announced an investor presentation regarding its unaudited financial results for the second quarter and half-year ending September 30, 2025. This presentation is part of an investor meet scheduled for November 17, 2025, and is available on the company’s website. This disclosure underlines Redtape Limited’s commitment to transparency and provides stakeholders with insights into the company’s financial performance, potentially impacting investor confidence and market positioning.