ScoreWhy is Redington Ltd ?
1
Low Debt Company with Strong Long Term Fundamental Strength
- Healthy long term growth as Net Sales has grown by an annual rate of 16.50% and Operating profit at 11.75%
- Company has a low Debt to Equity ratio (avg) at 0.14 times
- The company has been able to generate a Return on Capital Employed (avg) of 26.71% signifying high profitability per unit of total capital (equity and debt)
2
The company has declared Positive results for the last 3 consecutive quarters
- NET SALES(Q) Highest at Rs 34,922.47 cr
- PBDIT(Q) Highest at Rs 707.75 cr.
- OPERATING PROFIT TO NET SALES(Q) Highest at 2.03%
3
Stock is technically in a Bullish range
- The technical trend has deteriorated from on 10-Aug-26
- Multiple factors for the stock are Bullish like MACD, Bollinger Band, KST, DOW and OBV
4
With ROCE of 17, it has a Fair valuation with a 2.5 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 46.22%, its profits have risen by 59.8% ; the PEG ratio of the company is 0.3
5
High Institutional Holdings at 78.39%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Real-Time Research ReportHow much should you buy?
- Overall Portfolio exposure to Redington should be less than 10%
- Overall Portfolio exposure to Trading & Distributors should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Trading & Distributors)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Redington for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Redington
46.22%
0.90
51.45%
Sensex
-1.65%
-0.12
13.58%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
16.50%
EBIT Growth (5y)
11.75%
EBIT to Interest (avg)
7.28
Debt to EBITDA (avg)
1.22
Net Debt to Equity (avg)
0.17
Sales to Capital Employed (avg)
8.86
Tax Ratio
24.90%
Dividend Payout Ratio
33.12%
Pledged Shares
0
Institutional Holding
78.39%
ROCE (avg)
24.97%
ROE (avg)
17.36%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
15
Industry P/E
39
Price to Book Value
2.71
EV to EBIT
12.54
EV to EBITDA
11.54
EV to Capital Employed
2.46
EV to Sales
0.23
PEG Ratio
0.25
Dividend Yield
1.70%
ROCE (Latest)
17.03%
ROE (Latest)
15.76%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
Bearish
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
No Trend
Bullish
OBV
No Trend
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend20What is working for the Company
NET SALES(Q)
Highest at Rs 34,922.47 cr
PBDIT(Q)
Highest at Rs 707.75 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 2.03%
PBT LESS OI(Q)
Highest at Rs 567.71 cr.
PAT(Q)
At Rs 485.98 cr has Grown at 21.4% (vs previous 4Q average
EPS(Q)
Highest at Rs 6.22
-5What is not working for the Company
ROCE(HY)
Lowest at 16.98%
CASH AND CASH EQUIVALENTS(HY)
Lowest at Rs 1,121.50 cr
DEBTORS TURNOVER RATIO(HY)
Lowest at 5.52 times
Loading Valuation Snapshot...
Here's what is working for Redington
Net Sales - Quarterly
Highest at Rs 34,922.47 cr and Grown
each quarter in the last five quartersMOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 707.75 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 2.03%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 567.71 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 567.71 cr has Grown at 36.4% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 416.08 CrMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 485.98 cr has Grown at 21.4% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 400.26 CrMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 6.22
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Here's what is not working for Redington
Cash and Cash Equivalents - Half Yearly
Lowest at Rs 1,121.50 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debtors Turnover Ratio- Half Yearly
Lowest at 5.52 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
