REDTAPE LIMITED Valuation

REDTAPE · Consumer Durables · Current price ₹122.19

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DocStoX fair value
₹116
low confidence
Current price
₹122
Upside
-5.0%
P/E ratio
28.1x
P/B ratio
7.4x
Verdict
Fairly Valued
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Is REDTAPE LIMITED undervalued?

DocStoX estimates the fair value of REDTAPE LIMITED at ₹116 per share, versus the current market price of ₹122. That puts the stock about -5.0% above our fair-value estimate, which we read as "Fairly Valued". Our confidence in this estimate is low.

How this fair value is calculated

This estimate blends 3 independent methods: Residual income (₹42), Relative P/E (₹305), Graham floor (₹43). We weight each by its reliability and skip any method whose inputs look untrustworthy — "no DCF beats a wrong DCF". This is the same deterministic engine that powers DocStoX stock pages; there is no guesswork or AI-generated number here.

Bear, base and bull scenarios

Our scenarios span ₹42 (bear) to ₹116 (base) to ₹305 (bull). A margin of safety means buying meaningfully below the base case — the wider the gap, the more room for error in the assumptions.

Valuation multiples

REDTAPE LIMITED trades at a P/E of 28.1x and a P/B of 7.4x, with a dividend yield of 1.6%. Multiples are most useful compared against the company's own history and its sector peers — see the peer comparison for context.

Understand the ratios

More on REDTAPE LIMITED

DocStoX estimates are generated by a deterministic valuation engine from reported financials — for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.