Redtape Limited (REDTAPE) AI Stock Analysis

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Redtape Limited

(NSE:REDTAPE)

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Rating:70Outperform

Price Target:INR 118.00▲(9.82% 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

Strong Revenue and Earnings GrowthSustained revenue expansion alongside rising net income indicates growing demand for the brand and improving earnings capacity. This scale supports greater operating leverage, creates more resources for marketing and product development, and can strengthen Redtape’s position in branded footwear and apparel.

Negative Factors

Volatile Free Cash FlowThe multi-year pattern of negative and sharply varying free cash flow means accounting profits have not consistently converted into funding available for the business. This can constrain expansion, increase reliance on financing, and make liquidity more sensitive to working-capital or investment needs.

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

Market Cap: INR 59.38B
Dividend Yield: 1.86%
Average Volume (3M): 44.14K
Price to Earnings (P/E): 23.5
Beta (1Y): 0.89
Revenue Growth: 13.72%
EPS Growth: 40.48%
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	24.18B	24.19B	20.20B	18.43B	14.68B	3.03B
Gross Profit	9.76B	10.42B	7.37B	8.83B	6.72B	1.35B
EBITDA	4.70B	4.80B	3.67B	3.28B	2.48B	472.20M
Net Income	2.54B	2.41B	1.70B	1.76B	1.42B	290.40M
Balance Sheet
Total Assets	24.25B	23.06B	22.24B	15.88B	12.39B	8.26B
Cash, Cash Equivalents and Short-Term Investments	87.90M	90.50M	145.70M	210.40M	261.80M	142.60M
Total Debt	8.30B	7.20B	7.24B	4.80B	2.60B	1.87B
Total Liabilities	14.40B	12.84B	14.35B	9.40B	7.62B	5,000
Stockholders Equity	9.85B	10.21B	7.89B	6.48B	4.77B	3.36B
Cash Flow
Free Cash Flow	0	880.90M	-1.79B	-351.40M	-189.00M	-1.48B
Operating Cash Flow	0	1.74B	-76.10M	843.70M	1.27B	402.50M
Investing Cash Flow	0	-844.10M	-1.07B	-1.16B	-1.27B	-491.70M
Financing Cash Flow	0	-939.90M	1.20B	261.00M	124.30M	-132.30M

Redtape Limited Technical Analysis

Technical Analysis SentimentNegative

Last Price107.45

Price Trends

50DMA113.23Negative

100DMA121.43Negative

200DMA122.51Negative

Market Momentum

MACD-1.71Negative

RSI44.02Neutral

STOCH64.52Neutral

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 107.45 is below the 20-day moving average (MA) of 107.45, below the 50-day MA of 113.23, and below the 200-day MA of 122.51, indicating a bearish trend. The MACD of -1.71 indicates Negative momentum. The RSI at 44.02 is Neutral, neither overbought nor oversold. The STOCH value of 64.52 is Neutral, 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 59.40B	23.45	―	1.86%	13.72%	40.48%
IN:BATAINDIA	60Neutral	INR 82.59B	54.88	―	5.29%	4.72%	-11.79%
IN:CAMPUS	60Neutral	INR 59.81B	37.85	―	0.77%	14.01%	27.83%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:RELAXO	45Neutral	INR 73.18B	39.57	―	1.19%	6.83%	6.78%
IN:VIPIND	42Neutral	INR 33.89B	-12.75	―	―	-1.34%	-35.61%
IN:ABFRL	38Underperform	INR 47.66B	-2.30	―	―	-14.41%	-55.58%

* General Sector Average

Performance Comparison

IN:REDTAPE and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:REDTAPE	Redtape Limited	107.45	-23.31	-17.83%
IN:ABFRL	Aditya Birla Fashion and Retail Limited	39.20	-39.01	-49.88%
IN:BATAINDIA	Bata India Ltd	642.60	-325.22	-33.60%
IN:CAMPUS	Campus Activewear Ltd.	195.65	-78.17	-28.55%
IN:RELAXO	Relaxo Footwears Limited	293.95	-128.98	-30.50%
IN:VIPIND	V.I.P.INDUSTRIES LTD.	238.55	-149.20	-38.48%

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 information an...

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