NSE: REDTAPEConsumer DurablesMid Cap

Redtape Ltd.

ISIN: INE0LXT01019 • Market Cap: ₹6,968 Cr

5-Pillar Score
74/100
Solid & Healthy
P/E Ratio28.28
ROCE29.8%
ROE23.6%
Debt to Equity0.38
3Y Sales CAGR9.7%
Promoter Holding71.8%
Detailed Quantitative Breakdown

The 5-Pillar Quality Audit for Redtape Ltd.

Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:

1. Profitability & Capital Efficiency

Weight: 25%
82/ 100

Measures operating margins (18.0%), Return on Capital Employed (29.8%), and equity compounding (23.6%).

2. Financial Health & Solvency

Weight: 25%
78/ 100

Debt-to-Equity is 0.38 with comfortable interest coverage and clean working capital.

3. Growth & Compounding Track Record

Weight: 20%
62/ 100

Historical 3Y Sales CAGR (9.7%) and 3Y PAT CAGR (11.8%).

4. Valuation Multiple & Margin of Safety

Weight: 15%
68/ 100

Trades at P/E of 28.28 vs PEG of 1.51 and Dividend Yield of 1.6%.

5. Ownership Quality & Governance

Weight: 15%
72/ 100

Promoter holding stands at 71.8%, backed by 14.9% institutional ownership.

Key Fundamental Strengths

Superior Capital Efficiency (ROCE: 29.8%)

Redtape Ltd. generates exceptional return on capital employed of 29.8%, reflecting pricing power and competitive moat.

Robust Equity Compounding (ROE: 23.6%)

Shareholder equity compounds at a healthy 23.6%, exceeding average Indian equity benchmarks.

Areas to Watch & Potential Risks

Sectoral & Macro Headwinds (Consumer Durables)

Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Consumer Durables space.

Institutional Strategy Filters

Quantitative Strategy Eligibility

Checking REDTAPE against established Indian wealth creation frameworks:

Eligible

Coffee Can Investing Framework

Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.

Top Quartile

Quality Factor Screener (High RoIC + Low Debt)

Qualifies for Indian Quality Indices with overall score of 74/100 and clean gearing.

Watchlist

GARP / Value-Growth Blend

Valuation multiple or return metrics require further cyclical pullback.

Industry Benchmark

Consumer Durables Sector Peer Comparison

Compare REDTAPE directly against top industry peers by market capitalization:

Company5-Pillar ScoreMarket CapP/EROCED/EScorecard
Redtape Ltd. (REDTAPE)Current74/100₹6,968 Cr28.2829.8%0.38—
Titan Company Ltd. (TITAN)70/100₹4.50 Lakh Cr78.0539.2%1.76View
Asian Paints Ltd. (ASIANPAINT)67/100₹2.51 Lakh Cr52.7324.4%0.11View
LG Electronics India Ltd. (LGEINDIA)65/100₹1.12 Lakh Cr61.1628.4%0.00View
Dixon Technologies (India) Ltd. (DIXON)82/100₹88,626 Cr47.2130.1%0.07View
Havells India Ltd. (HAVELLS)70/100₹80,202 Cr49.1122.7%0.00View

Frequently Asked Questions: Redtape Ltd.

Q:What is the 5-Pillar Fundamental Score for Redtape Ltd. (REDTAPE)?

Redtape Ltd. has a RupeeTools Fundamental Score of 74/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (82/100), Financial Health (78/100), Growth (62/100), Valuation (68/100), and Ownership Quality (72/100).

Q:Is REDTAPE fundamentally strong for long-term investment?

Yes, REDTAPE exhibits solid fundamental strength with a 74/100 score, driven by a return on equity of 23.6% and a debt-to-equity ratio of 0.38.

Q:Does REDTAPE pass the Coffee Can Investing filter?

Yes! REDTAPE satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.

Q:How does REDTAPE compare against other Consumer Durables peers?

Within India's Consumer Durables sector, REDTAPE trades at a P/E of 28.28 and generates an ROCE of 29.8%. Compare its 5-Pillar score of 74/100 against top sector peers like Titan Company Ltd. (70/100), Asian Paints Ltd. (67/100).

Regulatory & SEBI Research Analyst Compliance Disclaimer:

This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.