Redtape Ltd.
ISIN: INE0LXT01019 • Market Cap: ₹6,968 Cr
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%Measures operating margins (18.0%), Return on Capital Employed (29.8%), and equity compounding (23.6%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.38 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (9.7%) and 3Y PAT CAGR (11.8%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 28.28 vs PEG of 1.51 and Dividend Yield of 1.6%.
5. Ownership Quality & Governance
Weight: 15%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.
Quantitative Strategy Eligibility
Checking REDTAPE against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Qualifies for Indian Quality Indices with overall score of 74/100 and clean gearing.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Consumer Durables Sector Peer Comparison
Compare REDTAPE directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Redtape Ltd. (REDTAPE)Current | 74/100 | ₹6,968 Cr | 28.28 | 29.8% | 0.38 | — |
| Titan Company Ltd. (TITAN) | 70/100 | ₹4.50 Lakh Cr | 78.05 | 39.2% | 1.76 | View |
| Asian Paints Ltd. (ASIANPAINT) | 67/100 | ₹2.51 Lakh Cr | 52.73 | 24.4% | 0.11 | View |
| LG Electronics India Ltd. (LGEINDIA) | 65/100 | ₹1.12 Lakh Cr | 61.16 | 28.4% | 0.00 | View |
| Dixon Technologies (India) Ltd. (DIXON) | 82/100 | ₹88,626 Cr | 47.21 | 30.1% | 0.07 | View |
| Havells India Ltd. (HAVELLS) | 70/100 | ₹80,202 Cr | 49.11 | 22.7% | 0.00 | View |
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.