The new warehouse is now open.
Came across something interesting today -
Red tape is the only indian brand that shows up at the top of the Popularity/Best sellers filter with international brands like Puma, Reebok, and Asics on most of the popular e-commerce platforms.
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Went to their showroom yesterday… their inventory management is not yet integrated across the stores. Their yesteryear hits not available in latest showroom. Collection looks really good but size availability was an issue.
Invested and biased
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Hi guys the September Quarter results were nothing great, what is the expectations for this quarter? … the stock has started cracking from peak of 550 down to 445.
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Good to see the company proactively looking into more point of sales.
The coming quarters look fruitful.
- The company has entered into a Strategic, Marketing, and technical tie-up with Daraz.com, a Bangladesh-based online shopping platform for the sale of RED TAPE Products in Bangladesh.
- The Company has entered into Strategic, Marketing, and technical tie-up with Open Network for Digital Commerce (ONDC) for marketing its products.
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Mutual Funds add another 4,50,000 shares of Redtape in December taking MF’s holding to over 7%
| Stock Name:Redtape Ltd. | As on 31-Dec-23 | ||||||
|---|---|---|---|---|---|---|---|
| Sector | No. of Funds | No. of Shares | No. of Shares | No. of Shares | No. of Shares | ||
| `Dec-23 | `Nov-23 | `Oct-23 | `Sep-23 | ||||
| Retail and Other Services | 4 | 9917648 | 9464712 | 8704612 | 8719739 | ||
| `Fund Name | `Fund Manager | `Dec-23 | `Dec-23 | `Dec-23 | `Nov-23 | `Oct-23 | `Sep-23 |
| AUM (in Rs. cr) | % of AUM | No. of Shares | No. of Shares | No. of Shares | No. of Shares | ||
| HDFC Small Cap Fund-Reg(G) | Chirag Setalvad | 26837 | 0.98 | 5604028 | 5604028 | 5604028 | 5604028 |
| ICICI Pru Flexicap Fund(G) | Rajat Chandak | 13525.1 | 1.49 | 4275740 | 3822804 | 3084474 | 3099601 |
| ICICI Pru LT Wealth Enhancement Fund(G) | Rajat Chandak | 37.1 | 2.76 | 21770 | 21770 | 0 | 0 |
| ICICI Pru Retirement Fund-Pure Equity Plan(G) | Lalit Kumar | 484.1 | 0.16 | 16110 | 16110 | 16110 | 16110 |
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redtape q3 results.pdf (3.7 MB)
Q3 Results has shown good improvment Quarter on Quarter
Current Q results are definitely good both QoQ and YOY. However one should remember that the growth is mainly coming from shift in Festive sales from Q2 to Q3.
Looking at 9 months YOY would be a better metric. Revenue is up 23% YOY and PAT up 27% YOY.
The growth is decent and the Co is trading just ~50x P/E and so the PEG is ~2x.
Just sharing my thoughts. Not a reco to buy or sell
6 Likes
do they disclose how much their revenue are from exports? Looks like they have presense in several countries, curious to know how are current exports and how can they evolve with the England trade deal …
Domestic was 97.4%
Exports were 2.6%, which I guess is gradually increasing.
1 Like
Drew up a table of the top 50 Mens Shoes bestsellers on Amazon Amazon.in Bestsellers: The most popular items in Men's Shoes
| Brand | Number of Products | Average Rating | Price Range (in ₹) | Total Reviews |
|---|---|---|---|---|
| Sparx | 6 | 4.08 | ₹320.00 - ₹880.00 | 101,222 |
| ASIAN | 6 | 3.95 | ₹159.00 - ₹799.00 | 104,142 |
| Red Tape | 4 | 4.05 | ₹499.00 - ₹1,709.00 | 61,988 |
| FLITE | 2 | 3.95 | ₹292.00 - ₹294.00 | 51,286 |
| Campus | 4 | 3.95 | ₹895.00 - ₹1,205.00 | 24,812 |
| Puma | 5 | 4.02 | ₹899.00 - ₹2,550.00 | 25,893 |
| Adidas | 3 | 4.03 | ₹1,349.00 - ₹1,529.00 | 19,952 |
| Nivia | 2 | 4.10 | ₹949.00 - ₹1,499.00 | 17,994 |
| DOCTOR EXTRA SOFT | 4 | 4.15 | ₹695.00 - ₹699.00 | 9,892 |
| Bata | 2 | 3.75 | ₹281.00 - ₹715.00 | 5,835 |
| Vector X | 1 | 3.90 | ₹879.00 | 1,001 |
| YOHO | 1 | 4.00 | ₹496.00 | 1,193 |
| Liberty | 1 | 4.00 | ₹340.00 | 1,270 |
| Dr.Ortho | 1 | 4.00 | ₹395.00 | 654 |
| JQR | 1 | 4.60 | ₹1,429.00 | 138 |
| HUNDRED | 1 | 3.90 | ₹1,499.00 | 840 |
| YUKI | 2 | 3.80 | ₹145.00 - ₹159.00 | 609 |
| NIKE | 1 | 4.70 | ₹2,550.00 | 13 |
| FAUSTO | 1 | 4.10 | ₹854.00 | 497 |
| Hygear | 1 | 4.00 | ₹439.00 | 2,111 |
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Good data. The price range of Red Tape shown is the MRP it seems. They usually offer deep discounts so the effective price range must be far less than shown here.
1 Like
Those are discounted prices.
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After Bangladesh, Redtape seems to be expanding into China now.
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Noticed a huge new store of Red Tape coming up near my home in Lucknow.
This is a prime commercial area and must be expensive. Since few months back I was seeing a new building getting constructed and 2 days back saw that Red Tape store is opening
More interesting thing is that Lucknow already has 5-6 stores now and the earlier ones were in a bit of outer areas but now they are opening big stores in prime areas (earlier I had posted about new store in hazratganj, which is a very expensive area).
Given that if they are able to open so many stores in city like Lucknow then the potential to keep expanding is huge.
But we also need to keep a check if things are running well or not.
Ayush
31 Likes
Moved as expected…not a technical analysis kinda person but learning and it does seem to be working when combined with great fundamentals.
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Redtape at 720 seems richly valued & I have been reducing my position upwards of 700. Its a great Co./brand & can surely continue to perform well, but as profit booking is a part of the game, I am happy with the returns. It (Redtape) has been an awesome two year ride!!
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@RajeevJ It is richly valued if seen in isolation, but how do you see it in comparison to peers (say other shoe companies in retail)? At the surface, their Asset turn, and ROCE seem far better.
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Yup, I would agree to disagree. Redtape is the most efficient and fastest grower of the lot, We shouldn’t forget with growth comes earnings which ultimately improves valuations. I am expecting the upcoming qtr to be the best one so far, 950-1100 isn’t too distant.
ROCE
Redtape - 44.8%
Relaxo - 11.8%
Bata - 19.6%
Campus - 23%
Metro Brands - 24.3%
Sales QoQ | YoY
Redtape - +90% | +29%
Relaxo - (-) | +4.6%
Bata - +10% | +0.33%
Campus - +82% | +1%
Metro Brands - +14.3% | +6%
PE ratio
Redtape - 58
Relaxo - 102
Bata - 61
Campus - 89.5
Metro brands - 87
What’s fascinating here is the realization of valuation disparity by the market, It is evident how the competition is seeing a fall in premium valuations and how Redtape is being taken to there.
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