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Redtape

  • Market Cap: Small Cap
  • Industry: Footwear
  • ISIN: INE0LXT01019
  • NSEID: REDTAPE
  • BSEID: 543957
INR
127.95
0.35 (0.27%)
BSENSE

Dec 05

BSE+NSE Vol: 64.36 k

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

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Comparison
Company
Score
Quality
Valuation
Financial
Technical
Lehar Footwears
Campus Activewe.
Metro Brands
Bata India
Sreeleathers
Liberty Shoes
Relaxo Footwear
Redtape
Khadim India
KSR Footwear
Why 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 4.5 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 -39.27%, 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 -39.27% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months
stock-recommendationReal-Time Research Report
Verdict Report
How much should you sell?
  1. All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Footwear)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Redtape for you?

High Risk, Low Return

Absolute
Risk Adjusted
Volatility
Redtape
-38.61%
-0.95
41.47%
Sensex
4.68%
0.45
11.83%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors
Factor
Value
Sales Growth (5y)
16.07%
EBIT Growth (5y)
7.24%
EBIT to Interest (avg)
6.40
Debt to EBITDA (avg)
1.84
Net Debt to Equity (avg)
1.05
Sales to Capital Employed (avg)
1.53
Tax Ratio
26.89%
Dividend Payout Ratio
73.16%
Pledged Shares
0
Institutional Holding
14.60%
ROCE (avg)
20.90%
ROE (avg)
21.73%
stock-recommendationValuation
Valuation Scorecard stock-summary
stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary
Factor
Value
P/E Ratio
39
Industry P/E
63
Price to Book Value
8.22
EV to EBIT
29.44
EV to EBITDA
22.31
EV to Capital Employed
4.52
EV to Sales
3.74
PEG Ratio
2.65
Dividend Yield
0.19%
ROCE (Latest)
15.36%
ROE (Latest)
21.08%
Loading Valuation Snapshot...
stock-recommendationTechnicals
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bearish
Dow Theory
No Trend
No Trend
OBV
Mildly Bullish
No Trend
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend
Financial Trend Scorecard stock-summary
stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company
NO KEY POSITIVE TRIGGERS
-18What is not working for the Company
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%

OPERATING PROFIT TO INTEREST (Q)

Lowest at 3.87 times

DEBT-EQUITY RATIO(HY)

Highest at 1.08 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 10.68 times

INTEREST(Q)

Highest at Rs 18.80 cr

Loading Valuation Snapshot...
Here's what is not working for Redtape
Profit After Tax (PAT) - Quarterly
At Rs 27.54 cr has Fallen at -38.2% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 44.55 Cr
MOJO Watch
Near term PAT trend is very negative

PAT (Rs Cr)

Operating Cash Flow - Annually
Lowest at Rs 4.24 Cr and Fallen
each year in the last three years
MOJO Watch
The company's cash revenues from business operations are falling

Operating Cash Flows (Rs Cr)

Operating Profit to Interest - Quarterly
Lowest at 3.87 times
in the last five quarters
MOJO Watch
The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest - Quarterly
Highest at Rs 18.80 cr
in the last five quarters and Increased by 14.70 % (QoQ)
MOJO 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 periods
MOJO 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 periods
MOJO Watch
Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio

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