REDINGTON - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.5
| Stock Code | REDINGTON | Market Cap | 17,145 Cr. | Current Price | 219 ₹ | High / Low | 335 ₹ |
| Stock P/E | 14.7 | Book Value | 61.3 ₹ | Dividend Yield | 3.10 % | ROCE | 32.6 % |
| ROE | 35.0 % | Face Value | 2.00 ₹ | DMA 50 | 255 ₹ | DMA 200 | 261 ₹ |
| Chg in FII Hold | 0.13 % | Chg in DII Hold | 0.31 % | PAT Qtr | 223 Cr. | PAT Prev Qtr | 532 Cr. |
| RSI | 36.5 | MACD | -8.86 | Volume | 25,50,940 | Avg Vol 1Wk | 43,13,327 |
| Low price | 177 ₹ | High price | 335 ₹ | PEG Ratio | 0.95 | Debt to equity | 0.30 |
| 52w Index | 26.9 % | Qtr Profit Var | -51.5 % | EPS | 14.9 ₹ | Industry PE | 29.2 |
📊 Redington shows strong fundamentals but weak technical indicators, making it a moderate candidate for swing trading. The RSI at 36.5 indicates near oversold conditions, while MACD (-8.86) confirms bearish momentum. The stock is trading below both its 50 DMA (255 ₹) and 200 DMA (261 ₹), signaling short-term weakness. Valuation is attractive with a P/E of 14.7 compared to industry average of 29.2, though recent profit decline raises caution.
💡 Optimal Entry Price: Around 215–225 ₹ (near current support)
💡 Exit Strategy (if already holding): Consider exiting near 250–255 ₹ (50 DMA resistance) unless momentum strengthens.
🌟 Positive
- Strong ROCE (32.6%) and ROE (35.0%) indicate excellent efficiency.
- Dividend yield of 3.10% provides steady income.
- Low debt-to-equity ratio (0.30) shows financial stability.
- EPS of 14.9 ₹ supports earnings consistency.
- Institutional holdings increased (FII +0.13%, DII +0.31%).
⚠️ Limitation
- Quarterly PAT declined sharply (223 Cr. vs 532 Cr.), showing volatility.
- PEG ratio of 0.95 indicates moderate growth prospects.
- Stock trading below both 50 DMA and 200 DMA.
- Volume lower than 1-week average, showing reduced liquidity.
📉 Company Negative News
- Bearish technical indicators: RSI near oversold and MACD negative.
- Stock underperforming relative to recent highs (335 ₹).
- Quarterly profit variation of -51.5% shows operational weakness.
📈 Company Positive News
- Strong efficiency metrics (ROCE and ROE well above industry averages).
- Dividend yield supports investor confidence.
- Institutional investors marginally increasing holdings.
🏭 Industry
- Industry P/E at 29.2, while Redington trades at a discount (14.7).
- IT distribution and services sector benefits from digital transformation and enterprise demand.
- Competition remains strong, requiring consistent execution and margin management.
✅ Conclusion
Redington is fundamentally strong but technically weak, making it a cautious swing trade candidate. Entry near 215–225 ₹ is favorable, with an exit target around 250–255 ₹. Traders should remain cautious due to weak momentum and profit decline, while long-term investors may hold for strong efficiency and attractive valuation relative to industry peers.