REDINGTON - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:01 am

Swing Trade Rating: 3.9

📊 Based on the given parameters, REDINGTON shows good potential for swing trading. The stock trades at a reasonable valuation (P/E 15.1 vs industry 32.7), supported by strong efficiency metrics (ROCE 32.6%, ROE 35.0%). Dividend yield (2.55%) adds investor appeal, and EPS (17.9 ₹) is healthy. Technical indicators (RSI 41.6, MACD -1.95) suggest cautious sentiment, but the stock is near support levels (DMA 200 at 263 ₹). Short-term opportunities exist if momentum improves.

💡 Optimal Entry Price: Around 265–270 ₹ (near DMA 200 support).

🚪 Exit Strategy: If already holding, consider exiting near 300–310 ₹ resistance or on breakdown below 265 ₹.

✅ Positive

• 📈 Strong ROCE (32.6%) and ROE (35.0%)
• 📊 EPS at 17.9 ₹, supporting valuation
• 💰 Dividend yield of 2.55%, attractive for investors
• 📉 Debt-to-equity ratio at 0.30, manageable leverage

⚠️ Limitation

• 📉 RSI at 41.6, near oversold zone
• 📊 MACD negative (-1.95), weak momentum
• 📉 Quarterly profit variation negative (-14.0%)
• 📊 Trading volumes below average, reduced liquidity

🚨 Company Negative News

• 📉 Decline in FII holdings (-0.77%)
• 📊 Quarterly PAT dropped (532 Cr vs 200 Cr, but variation -14%)

🌟 Company Positive News

• 📈 DII holdings increased (+0.32%)
• 📊 Reasonable valuation compared to industry peers

🏭 Industry

• 📊 Industry PE at 32.7, much higher than REDINGTON’s valuation
• 📈 IT distribution and services sector benefiting from digital transformation and enterprise demand

📌 Conclusion

REDINGTON is a fairly attractive swing trade candidate with strong fundamentals and undervaluation relative to industry peers. Entry near 265–270 ₹ offers a favorable risk-reward setup, while exits should be targeted near 300–310 ₹. Traders should remain cautious due to weak momentum and FII outflows, using strict stop-loss management.

I can also prepare a comparison of REDINGTON with another IT distribution peer to highlight relative swing trade opportunities.