Redco Textiles Limited

KASE:REDCO Stock Report

Market Cap: PK₨773.9m

Redco Textiles Valuation

Is REDCO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of REDCO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: REDCO (PKR15.73) is trading below our estimate of fair value (PKR44.3)

Significantly Below Fair Value: REDCO is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for REDCO?

Key metric: As REDCO is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for REDCO. This is calculated by dividing REDCO's market cap by their current earnings.
What is REDCO's PE Ratio?
PE Ratio3.6x
EarningsPK₨217.53m
Market CapPK₨773.89m

Price to Earnings Ratio vs Peers

How does REDCO's PE Ratio compare to its peers?

The above table shows the PE ratio for REDCO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average10.1x
AMTEX Amtex
13.9xn/aPK₨900.2m
NAGC Nagina Cotton Mills
16.7xn/aPK₨991.1m
PRWM Prosperity Weaving Mills
6.7xn/aPK₨646.8m
KOHTM Kohat Textile Mills
3.1xn/aPK₨721.3m
REDCO Redco Textiles
3.6xn/aPK₨775.4m

Price-To-Earnings vs Peers: REDCO is good value based on its Price-To-Earnings Ratio (3.6x) compared to the peer average (10.1x).


Price to Earnings Ratio vs Industry

How does REDCO's PE Ratio compare vs other companies in the PK Luxury Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
BNWM Bannu Woollen Mills
1xn/aUS$1.28m
No more companies available in this PE range
REDCO 3.6xIndustry Avg. 9.0xNo. of Companies5PE0612182430+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: REDCO is good value based on its Price-To-Earnings Ratio (3.6x) compared to the PK Luxury industry average (9x).


Price to Earnings Ratio vs Fair Ratio

What is REDCO's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

REDCO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio3.6x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate REDCO's Price-To-Earnings Fair Ratio for valuation analysis.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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