Redtape Ltd (REDTAPE) — share price & stock analysis

Market cap

₹7,528 Cr

P/E

31.3×

ROE

26.6%

vs own history (since 2023)

13th pctile

Book value / share

₹18.5

EPS (TTM)

₹4.35

10-yr median P/E

45.6×

Revenue (FY26)

₹2,419 Cr

Profit after tax (FY26)

₹241 Cr

Weinstein stage

Stage 1 (5 weeks)

Data as of

1 July 2026

6 of the 6 things we track are currently moving the right way — nearly everything is pulling in the same direction.

Where the levels actually stand: ROCE 24% — a high-quality engine; debt moderate (0.7× equity). Momentum says which way things are moving; these say where they are.

Read this number for what it is: it measures the DIRECTION of change, not the quality of the business. A mediocre business getting better scores high here; a great one having a soft quarter scores low. Profit, sales and margins count double, and a quarter of the score comes from our earnings-recovery lens (is the profit cycle turning up off its trough?).

The business grew faster than the stock

Since Aug 2023, earnings per share grew 69% while the stock is up 17%. The business has outrun its own share price.pricettm_eps

When profits grow faster than the price, the stock quietly gets cheaper while doing better — the market hasn’t fully caught up.

Today’s P/E of 31.3× sits near the bottom of its own range — it has been cheaper than this only 13% of the time against its own history since 2023.pe_ratio

A caveat on every valuation comparison here: the stock has only traded since 2023, and in that time its P/E has ranged 30–83× — it has never been cheap. “Middle of its range” means the middle of an expensive range.pe_ratio

Price is the weekly close (₹). EPS is trailing-twelve-month profit per share, anchored on Screener's own snapshots; between snapshots it is filled from price ÷ P/E (an exact identity), and any fill straying more than 18% from the neighbouring snapshots is dropped rather than shown. The lower panel is the P/E — what the market pays per rupee of profit; the dotted line is its long-run median (45.6×).

The price is building a base — waiting for its next move

Price trends have a life cycle: they base (1), advance (2), top out (3) and decline (4). This chart is in Stage 1: basing — 5 weeks so far.stage

Long flat bases after a decline are where the next uptrend is born — but a base can last years. The signal to act is the breakout, not the base.stage

Beating NIFTY 500 for 14 weeks — relative strength is the market’s live opinion, and right now it is on this stock’s side.rs_mansfield

What would end it: two Friday closes in a row below the 200-day line. That is the house exit rule — mechanical, no debates.dma_200

Profits are at an all-time high

Over 3 years, sales went from ₹1,468 Cr to ₹2,419 Cr (about 18% a year), and profit from ₹142 Cr to ₹241 Cr.revenuenet_profit

The margin story is less kind: from 17.3% at the FY24 peak down to 14.3% now — near its 3-year low and still soft. The profit growth has come from volume, not richer economics.operating_profit

Sales jumped 34% last quarter — the 4th straight quarter of growth

Mar 26 sales were ₹676 Cr, up 34% on the same quarter last year.revenue

That makes 4 quarters of growth in a row — this is a trend, not a blip.revenue

Margins are widening — 9% → 17% in a year

Of every ₹100 of sales, the company keeps ₹16.5 as operating profit (a year ago it kept ₹8.9).opm_pct

The gross margin barely moved (47% → 43%), so the change came from running costs — the business is getting more efficient as it scales.gpm_pctopm_pct

Profit exploded 71% — mostly from keeping more of each sale

Mar 26 profit after tax was ₹70.0 Cr, up 71% year on year.net_profit

Profits on paper, cash lagging behind

Over the last 4 profitable years, the business reported ₹729 Cr of profit and collected ₹389 Cr of operating cash — about 53% conversion.operating_cash_flownet_profit

The gap sits in receivables: customers now take 32 days to pay, up from 20. Profit booked, cash pending.debtor_days

The cash cycle is tightening — money comes home faster

One rupee now takes about 240 days to go out the door as materials and come back as collected cash — down from 264 days the year before.cash_conversion_cycle

The biggest mover: inventory moving faster off the shelf (415 → 305 days).inventory_days

The asset base keeps compounding — this company builds

The productive asset base has gone from ₹304 Cr (FY22) to ₹750 Cr, with another ₹25.0 Cr of capacity under construction right now.fixed_assetscwip

The build is bigger than the cash engine: investing outflows (₹310 Cr) exceeded operating cash (₹262 Cr) over the last 3 years — the difference comes from debt or shareholders.investing_cash_flowoperating_cash_flow

Debt is present but comfortable

For every ₹100 shareholders have put in (and left in), the company has borrowed ₹70 — total borrowings have grown from ₹28.0 Cr to ₹720 Cr over the window.borrowings

Big money is quietly accumulating

Promoters hold 71.8%, essentially unchanged. Foreign funds own 3.8%, domestic funds 11.0%.promoters_pctfiis_pctdiis_pct

Institutions buying while the story develops is the market’s quiet vote of confidence — they meet management, you don’t.

Strong on the data — worth the deeper look if the story keeps its promises

The numbers lean positive, and the price hasn’t fully caught up with the improvement.

Best thing in the data: cash generation rising (₹4.0 Cr → ₹174 Cr).operating_cash_flow

One dissent worth hearing: our catalysts lens reads negative — “3 earnings trigger(s): Organized retail shift into tier-2/3 cities with 200-250 new store openings planned in FY27, predominantly in South and West India where ”. When a lens disagrees with the committee, it is usually pointing at the thing that breaks first.

Machine-written research from Screener data — every number traces to its source column. Sector Alpha is not a SEBI-registered investment adviser; nothing here is a recommendation to buy or sell. Not investment advice.

Straight answers from the data