Key Events This Week
Feb 09: Stock surges 5.50% on strong volume
Feb 12: Q3 FY26 results reveal 43% profit jump
Feb 13: Technical momentum shifts amid mixed signals
Feb 13: Week closes at Rs.133.75 (+7.39%) outperforming Sensex
Monday, 09 February: Strong Opening Rally on Heavy Volume
Redtape Ltd began the week with a robust gain of 5.50%, closing at Rs.131.40, up Rs.6.85 from the previous Friday’s close of Rs.124.55. This surge was accompanied by a healthy volume of 50,706 shares, signalling renewed investor confidence. The broader Sensex also advanced 1.04% to 37,113.23, but Redtape’s outperformance was notable, setting a positive tone for the week ahead.
Tuesday, 10 February: Profit Taking Leads to Minor Correction
Following Monday’s rally, the stock retraced 2.02% to close at Rs.128.75 on lighter volume of 18,188 shares. Despite this dip, the Sensex continued its modest upward trend, gaining 0.25% to 37,207.34. The slight pullback in Redtape’s price appeared to be a natural consolidation after the sharp gains, with no significant news impacting the stock on this day.
Wednesday, 11 February: Sideways Movement Amid Market Stability
Redtape’s price remained largely unchanged, slipping marginally by 0.12% to Rs.128.60 on a volume of 15,698 shares. The Sensex edged up 0.13% to 37,256.72, reflecting a stable market environment. The stock’s sideways movement suggested investors were awaiting fresh catalysts to drive the next directional move.
Thursday, 12 February: Quarterly Results Spark 1.40% Gain
Redtape Ltd announced its Q3 FY26 results, reporting a 43% jump in profit driven by a festive season surge. The stock responded positively, rising 1.40% to close at Rs.130.40 on significantly increased volume of 266,240 shares. The results revealed record quarterly net sales of ₹786.55 crores and a PBDIT of ₹170.58 crores, with operating margins expanding to 21.69%. Despite concerns over rising interest expenses and a higher debt-equity ratio of 1.08 times, the market welcomed the turnaround in operational performance.
Our latest monthly pick, this Small Cap from Oil Exploration/Refineries, is showing strong performance since announcement! See why our Investment Committee chose it after screening 50+ candidates.
- - Investment Committee approved
- - 50+ candidates screened
- - Strong post-announcement performance
Friday, 13 February: Technical Momentum Shift Supports 2.57% Rise
The week concluded with Redtape gaining 2.57% to close at Rs.133.75 on volume of 96,398 shares, despite the Sensex falling 1.40% to 36,532.48. Technical analysis indicated a shift from a mildly bearish to a sideways trend, supported by a mildly bullish weekly MACD and bullish On-Balance Volume readings. However, mixed signals from moving averages and momentum indicators suggested caution. The stock traded within a range of Rs.125.95 to Rs.138.75 intraday, reflecting volatility but also resilience. The company’s Mojo Score improved to 55.0, upgrading its rating to Hold, reflecting a more balanced outlook amid ongoing sector challenges.
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-09 | Rs.131.40 | +5.50% | 37,113.23 | +1.04% |
| 2026-02-10 | Rs.128.75 | -2.02% | 37,207.34 | +0.25% |
| 2026-02-11 | Rs.128.60 | -0.12% | 37,256.72 | +0.13% |
| 2026-02-12 | Rs.130.40 | +1.40% | 37,049.40 | -0.56% |
| 2026-02-13 | Rs.133.75 | +2.57% | 36,532.48 | -1.40% |
Key Takeaways from the Week
Positive Signals: Redtape’s 7.39% weekly gain significantly outpaced the Sensex’s 0.54% decline, driven by record quarterly revenue and profit margins. The 43% profit jump and operating margin expansion to 21.69% highlight improved operational efficiency. The Mojo Grade upgrade to Hold and a positive financial trend score of 15 reflect renewed confidence in the company’s turnaround. Technical indicators show a shift to sideways momentum with bullish volume trends, suggesting potential for further recovery.
Cautionary Notes: Despite strong top-line growth, rising interest expenses (+31.32%) and a higher debt-equity ratio (1.08 times) pose financial risks. The Return on Capital Employed at 17.42% indicates room for better capital utilisation. Mixed technical signals, including bearish moving averages and momentum indicators, advise prudence. The stock remains well below its 52-week high of Rs.180.00, and the one-year return is negative at -24.1%, underscoring past volatility and sector headwinds.
Holding Redtape Ltd from ? See if there's a smarter choice! SwitchER compares it with peers and suggests superior options across market caps and sectors!
- - Peer comparison ready
- - Superior options identified
- - Cross market-cap analysis
Conclusion: A Week of Encouraging Recovery Amid Challenges
Redtape Ltd’s performance this week reflects a significant rebound supported by strong quarterly results and a technical momentum shift. The company’s record revenue and profit margins mark a turning point, signalling operational improvements in a competitive footwear sector. However, elevated debt levels and mixed technical signals counsel caution. The stock’s outperformance relative to the Sensex and the upgrade to a Hold rating suggest a cautiously optimistic outlook, with investors advised to monitor margin sustainability and leverage management closely in the coming quarters.
Unlock special upgrade rates for a limited period. Start Saving Now →
