Red Tape Q1 numbers are superlative. Sales at 393 crs are quite likely at an all time high in terms of branded sales. A YOY growth of 57%. The operating margins too are perhaps at an all time high of 21%. The fact that Q1 historically has not been their best qtr only adds glow to the numbers! Usually its the festive Q3 that has the highest Sales & profits. Even if the Co. can grow at 35% in 23-24 & maintain operating margins at 20%, the Co. could well end the year with profits of about 240 crs with an EPS of about 17-18. The Co. enjoys a high ROCE of 37% if my numbers are correct. This will only improve in the current year. Being largely a fashion/ marketing Co., of some scale, it is quite likely to attract the fancy of investors. A listing below 300 could be very interesting, though perhaps unlikely.
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