REDINGTON - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 4.1
| Stock Code | REDINGTON | Market Cap | 21,616 Cr. | Current Price | 276 ₹ | High / Low | 335 ₹ |
| Stock P/E | 15.4 | Book Value | 61.3 ₹ | Dividend Yield | 2.46 % | ROCE | 32.6 % |
| ROE | 35.0 % | Face Value | 2.00 ₹ | DMA 50 | 271 ₹ | DMA 200 | 264 ₹ |
| Chg in FII Hold | 0.13 % | Chg in DII Hold | 0.31 % | PAT Qtr | 532 Cr. | PAT Prev Qtr | 200 Cr. |
| RSI | 56.6 | MACD | -1.65 | Volume | 15,01,823 | Avg Vol 1Wk | 13,14,415 |
| Low price | 177 ₹ | High price | 335 ₹ | PEG Ratio | 0.99 | Debt to equity | 0.30 |
| 52w Index | 62.9 % | Qtr Profit Var | -14.0 % | EPS | 17.9 ₹ | Industry PE | 32.3 |
📊 Analysis: REDINGTON trades at an attractive valuation (P/E 15.4 vs industry 32.3) with strong efficiency metrics (ROCE 32.6%, ROE 35.0%). EPS at ₹17.9 is solid, and dividend yield at 2.46% adds investor appeal. The current price (₹276) is above both 50 DMA (₹271) and 200 DMA (₹264), showing technical strength. RSI at 56.6 indicates healthy momentum, while MACD (-1.65) suggests mild consolidation. Quarterly PAT at ₹532 Cr is strong compared to ₹200 Cr in the previous quarter, though profit variation (-14.0%) signals some volatility. With manageable debt-to-equity (0.30) and institutional inflows, REDINGTON is a good candidate for swing trading.
💡 Optimal Entry Price: Around ₹270–₹275 (near 50 DMA support).
🚪 Exit Strategy: If already holding, consider booking profits near ₹310–₹320 (resistance zone). Exit below ₹265 if weakness persists to protect capital.
✅ Positive
- Attractive valuation (P/E 15.4 vs industry 32.3).
- Strong ROCE (32.6%) and ROE (35.0%).
- Dividend yield of 2.46% adds investor confidence.
- EPS of ₹17.9 reflects solid earnings power.
- Institutional holdings increased (FII +0.13%, DII +0.31%).
⚠️ Limitation
- Quarterly profit variation (-14.0%) shows earnings volatility.
- MACD indicates mild bearish consolidation.
- Price still below 52-week high (₹335), limiting upside potential.
📉 Company Negative News
- Profit variation decline despite strong PAT numbers.
- Volatility in quarterly earnings raises caution.
📈 Company Positive News
- Quarterly PAT surged to ₹532 Cr from ₹200 Cr.
- Strong trading volume above weekly average indicates investor interest.
- Institutional inflows support confidence in the stock.
🏭 Industry
- Industry P/E at 32.3 highlights REDINGTON’s undervaluation.
- IT distribution and services sector benefits from digital transformation and enterprise demand.
🔎 Conclusion
REDINGTON is fundamentally strong with attractive valuation, high efficiency, and institutional support. It is a good swing trade candidate with entry near ₹270–₹275 and exit near ₹310–₹320. Risk management is essential due to earnings volatility and mild bearish signals.