REDINGTON - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Rating: 4.0

📊 Financial Performance Overview

Quarterly Earnings

PAT softened from ₹400 Cr to ₹303 Cr — marginal decline, yet strong overall.

EPS: ₹20.5 — solid for a mid-cap tech distributor.

Return Metrics

ROE: 14.4%, ROCE: 18.9% — excellent asset efficiency and shareholder return.

Debt Profile

Debt-to-Equity: 0.32 — low leverage; financial stability confirmed.

Dividend Yield

2.36% — generous payout, appealing for income-oriented investors.

📈 Valuation & Price Signals

Metric Value Analysis

P/E Ratio 19.2 Attractive vs. industry PE of 34.4 — undervalued

P/B Ratio ~2.57 Fair pricing with growth potential

PEG Ratio –6.74 Negative PEG hints at possible earnings compression or anomaly

RSI 40.7 Mildly oversold — buying opportunity zone

MACD –0.58 Slight bearish bias — consolidation likely

Price vs DMA ₹288 vs DMA50 ₹292 / DMA200 ₹250 Near 50DMA, comfortably above 200DMA — technically healthy

52W Index Position: 73.3% — not far from peak; shows resilience.

Volume: Strong participation — investor engagement holding steady.

FII/DII Sentiment

FIIs increased stake (+2.01%), DIIs reduced (–1.22%) — positive global sentiment.

🛠️ Business Model & Moat Evaluation

Sector: IT & tech distribution — backbone for brands like Apple, HP, Dell in emerging markets.

Strengths

Dominant position in supply chain integration, inventory turnover excellence.

Pan-India presence with scalable systems and vendor relationships.

Risks

Qtr profit dip may signal margin pressure or inventory dynamics.

Currency fluctuation, channel delays, and competitive pressures must be monitored.

🎯 Investment Outlook

Suggested Entry Zone: ₹275–₹285 — near support and favorable valuation zone.

Holding Strategy

Strong mid-term pick with earnings visibility and healthy FII backing.

Ideal for moderate growth investors with dividend preference.

Watch quarterly margin trends and regional expansion to validate upside.

Want a peer comparison with Ingram Micro or Savex Technologies? That could help benchmark supply chain strength, profitability, and valuation comfort. I can line that up next.

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