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Redtape Limited (REDTAPE) Fair Value & Analysis

Consumer Cyclical · IN · Market cap ₹76.9B

RL Redtape Limited REDTAPE · NSE
Price₹121.66
Fair Value₹71.62
Upside-41.1%
Quality60/100
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Mixed Growth
Thin margins · 10.0% net margin
Low debt · generates free cash flow
1.46% dividend yield
Mixed vs. peers (8/14)
Moderate moat 63/100
Evidence: High Range ₹39.78 – ₹172.40 Share as image

Fair value as of: Aug 18, 2026

From 26 valuation models · updated today

Share price −7.9% over the past month.

A solid business, but screening 41% overvalued on our models.

What matters now

  • The model range is unusually wide (₹39.78 to ₹172.40). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Solid but not exceptional quality (60/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (3 years)

₹237.22 ₹103.02 Fair Value ₹71.62 Aug 2023 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 18, 2026.

How to read this chart

36‑month range ₹103.02 – ₹237.22 · fair‑value band ₹39.78 – ₹172.40 · the ₹121.66 price screens above the ₹71.62 fair value. Dashed = 300-day average. As of Aug 18, 2026.

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Analysis

Redtape Limited (REDTAPE) currently trades at ₹121.66, while our model-based Fair Value estimate is ₹71.62, implying the stock looks roughly 41.1% overvalued today. The Quality Score stands at 60/100 (solid quality), in the Consumer Cyclical sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Redtape Limited generated revenue of ₹24.2B at a net margin of 10.0%. Revenue grew 35.5% year over year. It earns a return on equity of 26.6%. Net debt stands at ₹7.1B. Fundamentals as of Aug 18, 2026

Our scenario range runs from ₹39.78 (bear case) to ₹172.40 (bull case); at ₹121.66, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 26% below its 52-week high and 13% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at 10% fair-value upside, at -41%, REDTAPE screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF ₹25.13 ₹49.97 ₹90.68 80
Residual Income ₹31.37 ₹45.79 ₹354.62 76
Rev-Margin DCF ₹41.13 ₹78.51 ₹156.37 74
All 26 models by family
DCF Models
FCF DCF ₹26.72 ₹42.10 ₹91.09 38
Owner Earnings ₹68.78 ₹156.64 ₹341.08 31
5Y Revenue Exit ₹36.99 ₹68.69 ₹135.44 39
5Y EBITDA Exit ₹49.96 ₹94.93 ₹183.36 41
5Y P/E Exit ₹61.47 ₹149.29 ₹271.00 38
10Y Revenue Exit ₹33.05 ₹83.32 ₹118.63 36
10Y EBITDA Exit ₹44.18 ₹111.26 ₹232.30 37
10Y P/E Exit ₹52.58 ₹136.05 ₹277.96 35
Earnings-Based
Graham-Dodd ₹29.59 ₹206.35 ₹289.59 54
Lynch FV ₹106.61 ₹152.30 ₹197.99 50
PEG = 1.0 ₹106.61 ₹152.30 ₹197.99 46
EPV ₹30.20 ₹35.25 ₹39.67 59
Dividend Discount
Gordon GGM ₹2.30 ₹4.77 ₹7.57 70
DDM Multi-Stage ₹2.30 ₹4.02 ₹5.01 61
Multiples
P/E Multiple ₹71.80 ₹95.73 ₹119.66 63
P/S Multiple ₹39.38 ₹52.51 ₹65.63 58
P/B Multiple ₹55.43 ₹73.90 ₹92.38 55
EV/EBIT ₹63.27 ₹84.39 ₹105.51 53
EV/EBITDA ₹56.46 ₹75.31 ₹94.16 54
EV/Revenue ₹36.66 ₹52.41 ₹68.16 43
Asset-Based
NCAV (Graham) ₹9.24 ₹12.38 ₹18.48 50
Growth DCF
Growth DCF ₹25.13 ₹49.97 ₹90.68 80
Rev-Margin DCF ₹41.13 ₹78.51 ₹156.37 74
Economic Profit
Residual Income ₹31.37 ₹45.79 ₹354.62 76
ROIC Compounder ₹41.26 ₹62.42 ₹77.81 72
Growth Earnings
Growth-Adj P/E ₹141.52 ₹202.17 ₹262.82 68

Widest divergence: Growth Earnings (₹202.17) versus Dividend Discount (₹4.02). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) ₹24.2B
Revenue growth (YoY) +35.5%
Net margin 10.0%
Return on equity 26.6%
Free cash flow ₹881M FY2026
P/E ratio 27.9
More key figures
Operating margin 13.2%
EPS (TTM) ₹4.36
Dividend yield 1.5%
EPS growth (YoY) +69.0%
Net debt ₹7.1B FY2026

Figures from reported company fundamentals · as of Aug 18, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 60/100

Of which business quality 57 · Market factors (momentum, volatility) 47

Profitability 71
Margins and returns on capital today
Quality Growth 85
Are margins and returns improving?
Cashflow 26
Earnings quality: real cash, not paper profit
Fin. Strength 56
Balance sheet, leverage, solvency risk
Investment 31
Disciplined investing over empire-building
Low Volatility 73
Calm price path (market factor)
Momentum 39
Price trend over the last 3–12 months (market factor)
52W Momentum 31
Distance to the 52-week high (market factor)
Net Issuance 79
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

REDTAPE Limited manufactures and sells footwear and clothing for men, women, and kids in India and internationally. It offers footwear, such as boots, casual and formal shoes, sandals/slippers, sliders/flip flops, and sports shoes; topwear, including jackets, shirts, sweaters, sweat shirts/hoodies, and T-shirts; bottomwear, such as jeans, trousers, shorts, …

Full company description

REDTAPE Limited manufactures and sells footwear and clothing for men, women, and kids in India and internationally. It offers footwear, such as boots, casual and formal shoes, sandals/slippers, sliders/flip flops, and sports shoes; topwear, including jackets, shirts, sweaters, sweat shirts/hoodies, and T-shirts; bottomwear, such as jeans, trousers, shorts, jeggings, and pants; and sports wear comprising active T-shirts and shorts, as well as innerwear comprising briefs. The company also provides accessories, including wallets, socks, handkerchiefs, caps, belts, and backpacks. It operates through retail and online networks, including exclusive brand outlets, major retail partners, and e-commerce platforms. The company offers its products under the RedTape, RedTape Athleisure, MODE by RedTape, and BOND STREET by RedTape brands. It also exports its products. REDTAPE Limited was founded in 1996 and is based in Noida, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Redtape Limited reported revenue of ₹24.2B in FY2026 versus ₹3.0B in FY2022, a compound +68.1%/yr. Reported net income was ₹2.4B in FY2026, compounding +69.6%/yr from FY2022.

Growth Quality 81/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2026)
₹24.2B
Latest YoY
+19.7%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+18.1%
Revenue +68.1%/yr
FY22 ₹3.0B
FY23 ₹14.7B
FY24 ₹18.4B
FY25 ₹20.2B
FY26 ₹24.2B
Net income +69.6%/yr
FY22 ₹290M
FY23 ₹1.4B
FY24 ₹1.8B
FY25 ₹1.7B
FY26 ₹2.4B

REDTAPE screens 41% overvalued. Compare with NIKE, Inc →

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Cite: Fair Value Calculator (2026). "Redtape Limited Fair Value". https://www.fairvalue-calculator.com/stock/REDTAPE

Peer Group

Footwear & Accessories · 94 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 60 · Above median
Fair Value upside −41% · Below median
Return on equity (TTM) 27% · Top 25%
Return on assets 7% · Top 25%
Net margin (TTM) 10% · Top 25%
Operating margin (TTM) 13% · Top 25%
Revenue growth 36% · Top 25%
Dividend yield (TTM) 1.5% · Below median
Debt / equity 0.01× · Lower than median

Valuation Multiples vs Footwear & Accessories median · lower = cheaper

P/E (TTM) 27.9× · Pricier than median
P/B 7.53× · Pricier than 75% of peers
P/S (TTM) 3.18× · Pricier than 75% of peers
P/FCF 0.9× · Cheaper than median
EV/EBITDA 22.2× · Pricier than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 8
FUTURE 100 · sector 0
PAST 100 · sector 23
HEALTH 99 · sector 97
DIVIDEND 29 · sector 52

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Footwear & Accessories stocks, each showing price versus our Fair Value estimate (as of Aug 18, 2026).

Stock Price Fair Value vs Fair Value
NIKE, Inc NKE $40.51 $35.63 -12%
adidas AG 1ADS €158.15 €65.71 -58%
Deckers Outdoor Corporation DECK $93.84 $125.16 +33%
On Holding ONON $30.91 $17.53 -43%
Zhejiang China Commodities City Group 600415 ¥11.81 ¥13.03 +10%
Birkenstock Holding BIRK $36.74 $44.59 +21%
Crocs, Inc CROX $130.61 $203.65 +56%
Huali Industrial Group 300979 ¥36.73 ¥51.36 +40%
PUMA SE PUM €26.69 €10.57 -60%
Yue Yuen Industrial (Holdings) Limited 0551 HK$13.64 HK$4.04 -70%

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Frequently asked questions

Is Redtape Limited (REDTAPE) overvalued or undervalued?
As of Aug 18, 2026, our model estimates a fair value of ₹71.62 versus a price of ₹121.66, about −41% (overvalued).
What is the fair value of REDTAPE?
Our model-based fair value for Redtape Limited is ₹71.62 (as of Aug 18, 2026), built from audited fundamentals. The current price is ₹121.66.
What is the quality score of REDTAPE?
Redtape Limited has a Quality Score of 60/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Redtape Limited (REDTAPE)?
Redtape Limited reported trailing-twelve-month revenue of about ₹24.2B (latest available figure, as of Aug 18, 2026).
What is the net profit margin of REDTAPE?
The net profit margin of Redtape Limited is about 10.0%, meaning it keeps roughly 10.0% of revenue as net income. Based on the latest reported figures.
Does Redtape Limited pay a dividend?
Redtape Limited currently shows a dividend yield of about 1.46% relative to its recent price (as of Aug 18, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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