REDINGTON - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 05 Nov 25, 7:43 am

Fundamental Rating: 4.4

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📊 Fundamental Analysis Report

• Stock Code: REDINGTON
• Market Cap: ₹19,834 Cr
• Current Price: ₹254
• 52W High/Low: ₹335 / ₹177
• EPS: ₹19.0
• Stock P/E: 13.3 vs Industry P/E: 42.4 🟢
• PEG Ratio: 0.86 🟢 (Undervalued vs Growth)
• Book Value: ₹58.7 | P/B Ratio: ~4.33 ❗
• ROE: 35.0% | ROCE: 32.6% 🔥
• Debt to Equity: 0.31 🟡 (Moderate Leverage)
• Dividend Yield: 2.68% 💰
• Quarterly PAT: ₹200 Cr (↓4.3%)
• RSI: 39.0 | MACD: -3.05 📉

✅ Positive

• Excellent ROE and ROCE reflect strong profitability and efficient capital deployment.
• Low P/E and PEG ratios suggest attractive valuation relative to earnings and growth.
• Healthy dividend yield of 2.68% supports income-focused portfolios.
• Quarterly profit growth of 28.6% YoY shows solid operational performance.
• Volume above average indicates rising investor interest.

⚠️ Limitation

• P/B ratio above 4 may deter value-focused investors.
• MACD and RSI suggest weak short-term technical momentum.
• FII holding declined by 0.77%, indicating cautious foreign sentiment.

📉 Company Negative News

• Sequential PAT dipped slightly from ₹209 Cr to ₹200 Cr.
• Technical indicators show bearish trend in the short term.

📈 Company Positive News

• Strong YoY profit growth and consistent EPS performance.
• DII holding increased by 0.32%, reflecting domestic institutional confidence.
• Stock has delivered 48.7% return over the past year, showing solid investor sentiment.

🏦 Industry

• REDINGTON operates in IT distribution and supply chain solutions.
• Industry P/E of 42.4 is significantly higher, suggesting REDINGTON trades at a discount.
• Sector benefits from digital transformation, cloud adoption, and enterprise tech demand.

🧭 Conclusion

• Entry Zone: ₹240–₹250 (near support and RSI oversold)
• Long-Term View: Strong fundamentals, attractive valuation, and sector tailwinds make REDINGTON a compelling long-term hold. Accumulate on dips while monitoring technical recovery.