REDINGTON - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.4
| Stock Code | REDINGTON | Market Cap | 16,876 Cr. | Current Price | 216 ₹ | High / Low | 335 ₹ |
| Stock P/E | 14.5 | Book Value | 61.3 ₹ | Dividend Yield | 3.15 % | ROCE | 32.6 % |
| ROE | 35.0 % | Face Value | 2.00 ₹ | DMA 50 | 230 ₹ | DMA 200 | 251 ₹ |
| Chg in FII Hold | -0.45 % | Chg in DII Hold | -0.16 % | PAT Qtr | 223 Cr. | PAT Prev Qtr | 532 Cr. |
| RSI | 44.1 | MACD | -2.97 | Volume | 94,04,221 | Avg Vol 1Wk | 55,63,710 |
| Low price | 191 ₹ | High price | 335 ₹ | PEG Ratio | 0.93 | Debt to equity | 0.30 |
| 52w Index | 17.1 % | Qtr Profit Var | -51.5 % | EPS | 14.9 ₹ | Industry PE | 31.1 |
📊 REDINGTON shows strong efficiency metrics with ROE (35.0%) and ROCE (32.6%), supported by a modest debt-to-equity ratio (0.30). EPS of ₹14.9 and dividend yield of 3.15% provide valuation comfort. The stock trades at a fair P/E of 14.5 vs industry average of 31.1, suggesting undervaluation. However, quarterly PAT dropped sharply (-51.5%), raising concerns about earnings stability. Technical indicators show weak momentum (RSI 44.1, MACD -2.97). Overall, REDINGTON is fundamentally efficient but faces near-term profit pressure.
💡 Ideal Entry Price Zone: ₹210 – ₹215 (near support levels and undervaluation zone).
⏳ Exit Strategy / Holding Period: Long-term investors can hold for 3–5 years, benefiting from efficiency and dividends. Partial profit booking is advisable near ₹225–₹230 (resistance zone). Stop-loss can be considered around ₹205 to manage downside risk.
✅ Positive
- Strong ROE (35.0%) and ROCE (32.6%).
- Low P/E (14.5) compared to industry average (31.1).
- Dividend yield of 3.15% provides steady income.
- PEG ratio of 0.93 suggests reasonable growth valuation.
⚠️ Limitation
- Quarterly PAT declined sharply (-51.5%).
- EPS of ₹14.9 is modest relative to valuation.
- FII (-0.45%) and DII (-0.16%) holdings decreased.
- Weak technical momentum (RSI 44.1, MACD negative).
📉 Company Negative News
- Sharp decline in quarterly profits raises earnings concerns.
- Reduced institutional holdings signal cautious sentiment.
📈 Company Positive News
- Strong efficiency metrics (ROE & ROCE).
- Dividend yield attracts income-focused investors.
- Valuation appears attractive compared to industry peers.
🏭 Industry
- Industry P/E at 31.1 shows sector is moderately valued compared to REDINGTON’s lower valuation.
- IT distribution and services sector benefits from digital transformation and enterprise demand.
🔎 Conclusion
REDINGTON is fundamentally efficient and undervalued, but sharp profit decline and weak technicals limit upside potential. Entry near ₹210–₹215 offers a safer setup, with profit booking near ₹225–₹230. Long-term investors can hold for dividends and efficiency, but monitoring quarterly earnings will be critical for sustained performance.