REDTAPE LIMITED Valuation

REDTAPE · Consumer Durables · Current price ₹134.04

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DocStoX fair value
₹106
low confidence
Current price
₹134
Upside
-20.7%
P/E ratio
30.8x
P/B ratio
7.4x
Verdict
Expensive
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Is REDTAPE LIMITED undervalued?

DocStoX estimates the fair value of REDTAPE LIMITED at ₹106 per share, versus the current market price of ₹134. That puts the stock about -20.7% above our fair-value estimate, which we read as "Expensive". Our confidence in this estimate is low.

How this fair value is calculated

This estimate blends 3 independent methods: Residual income (₹30), Relative P/E (₹294), 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 ₹30 (bear) to ₹106 (base) to ₹294 (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 30.8x and a P/B of 7.4x, with a dividend yield of 1.5%. 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.