Redtape Limited (REDTAPE) AI Stock Analysis

Redtape Limited

(NSE:REDTAPE)

Select Model

Rating:70Outperform

Price Target:INR 114.00▲(10.14% Upside)

Action:reiterated

Date:08/30/26

The overall score is driven primarily by Redtape’s strong growth, solid profitability, and attractive returns on equity, tempered by weaker and volatile cash flows and rising leverage, while mixed technical signals and a moderately rich valuation support but do not strongly enhance the investment case.

Positive Factors

Revenue GrowthRevenue expansion from 14.7B to 24.2B over three years, alongside 18.82% reported growth, indicates increasing demand for the company’s branded products. Sustained scale growth can support broader distribution, stronger operating leverage, and continued investment in the Red Tape brand.

Negative Factors

Volatile Cash GenerationThe multi-year pattern of negative free cash flow, followed by a single-year rebound, makes internally generated funding less dependable. Volatility can constrain expansion or require additional financing when inventory, working capital, or investment needs rise during growth periods.

Redtape Limited (REDTAPE) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 57.24B
Dividend Yield: 1.93%
Average Volume (3M): 49.06K
Price to Earnings (P/E): 23.3
Beta (1Y): 1.02
Revenue Growth: 18.82%
EPS Growth: 38.28%
Country: India
Employees: 660
Sector: General
Sector Strength: 55
Industry: Apparel - Footwear & Accessories

Redtape Limited Business Overview & Revenue Model

Company Description

Established in 1996 and based in Noida, India, Redtape Limited is an enterprise specializing in the manufacturing and global distribution of a diverse range of footwear and apparel. The company caters to men, women, and children, operating both withi...

How the Company Makes Money

Redtape Limited makes money mainly by selling branded consumer products (primarily footwear, and potentially apparel/accessories where offered) under its brand portfolio. Key revenue streams typically include: (1) Domestic sales to trade/distributors...

Redtape Limited Financial Statement Overview

Summary

Strong revenue growth, solid margins, and high returns on equity are partially offset by rising leverage and historically volatile cash generation.

Income Statement

82Very Positive

Balance Sheet

78Positive

Cash Flow

55Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	24.36B	24.19B	20.20B	18.43B	14.68B	3.03B
Gross Profit	9.57B	10.42B	7.37B	8.83B	6.72B	1.35B
EBITDA	4.78B	4.80B	3.67B	3.28B	2.48B	472.20M
Net Income	2.46B	2.41B	1.70B	1.76B	1.42B	290.40M
Balance Sheet
Total Assets	0	23.06B	22.24B	15.88B	12.39B	8.26B
Cash, Cash Equivalents and Short-Term Investments	90.50M	90.50M	145.70M	210.40M	261.80M	142.60M
Total Debt	0	7.20B	7.24B	4.80B	2.60B	1.87B
Total Liabilities	-10.21B	12.84B	14.35B	9.40B	7.62B	5,000
Stockholders Equity	10.21B	10.21B	7.89B	6.48B	4.77B	3.36B
Cash Flow
Free Cash Flow	-1.68B	880.90M	-1.79B	-351.40M	-189.00M	-1.48B
Operating Cash Flow	-1.24B	1.74B	-76.10M	843.70M	1.27B	402.50M
Investing Cash Flow	-592.60M	-844.10M	-1.07B	-1.16B	-1.27B	-491.70M
Financing Cash Flow	1.82B	-939.90M	1.20B	261.00M	124.30M	-132.30M

Redtape Limited Technical Analysis

Technical Analysis SentimentNegative

Last Price103.50

Price Trends

50DMA116.14Negative

100DMA123.59Negative

200DMA123.06Negative

Market Momentum

MACD-3.74Positive

RSI27.78Positive

STOCH7.50Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:REDTAPE, the sentiment is Negative. The current price of 103.50 is below the 20-day moving average (MA) of 110.21, below the 50-day MA of 116.14, and below the 200-day MA of 123.06, indicating a bearish trend. The MACD of -3.74 indicates Positive momentum. The RSI at 27.78 is Positive, neither overbought nor oversold. The STOCH value of 7.50 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:REDTAPE.

Redtape Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:REDTAPE against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:REDTAPE	70Outperform	INR 57.22B	23.27	―	1.93%	18.82%	38.28%
IN:CAMPUS	64Neutral	INR 58.32B	37.92	―	0.79%	13.71%	30.46%
IN:BATAINDIA	60Neutral	INR 80.79B	55.26	―	5.41%	1.91%	-29.92%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:RELAXO	45Neutral	INR 67.91B	36.53	―	1.29%	2.11%	5.98%
IN:ABFRL	37Underperform	INR 47.08B	-6.05	―	―	-27.21%	-53.22%
IN:VIPIND	37Underperform	INR 35.40B	-9.39	―	―	-10.75%	-340.31%

* General Sector Average

Performance Comparison

IN:REDTAPE and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:REDTAPE	Redtape Limited	103.50	-35.49	-25.53%
IN:ABFRL	Aditya Birla Fashion and Retail Limited	38.72	-46.58	-54.61%
IN:BATAINDIA	Bata India Ltd	628.55	-393.95	-38.53%
IN:CAMPUS	Campus Activewear Ltd.	190.80	-87.49	-31.44%
IN:RELAXO	Relaxo Footwears Limited	272.80	-156.91	-36.51%
IN:VIPIND	V.I.P.INDUSTRIES LTD.	249.20	-158.70	-38.91%

Redtape Limited Corporate Events

Exchange Seeks Clarity After Unusual Trading Surge in Redtape Limited

Sep 15, 2026

A sharp rise in trading volume has been recorded in shares of Redtape Limited, prompting the stock exchange to seek clarification from the company. The move underscores regulators’ focus on ensuring that investors have timely, relevant informat...

Redtape Clears Q1 FY27 Unaudited Results With Clean Auditor Review

Aug 10, 2026

Redtape Limited said its board has approved unaudited standalone and consolidated financial results for the quarter ended June 30, 2026, following a meeting held on August 10. The results, reviewed and recommended by the audit committee, will be publ...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 30, 2026

Redtape Limited AI Stock Analysis