Thanks @sahil_vi for your insightful post.
The guarantee commission issue is now clearly a thing of the past. Redtape is now being run by one branch of the family rather than multiple family branches, each looking for spoils! This will go a long way in improving corporate governance going forward.
If the foot ware industry as a whole is indeed expected to grow 8 fold over the next 6-7 years & annually at about 25%, then clearly Redtape is in a sweet spot & set to benefit immensely over the said period. It is not unreasonable to assume that Redtape can continue to grow at about 29%, the growth it exhibited in Q1. If it can sustain Q1 margins, then the stock is trading about 25 times for the current year 23-24. Investors can gauge for themselves how they want to value the Co., but to me it seems further re-rating is a definite possibility, but for that to happen, the market needs to reassured that corporate governance going forward will be top notch. Only time will tell.
| Subscribe To Our Free Newsletter |
