REDINGTON - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 4.1

📈 Positive

• 📊 Strong fundamentals: ROCE of 32.6% and ROE of 35.0% reflect excellent capital efficiency.
• 💰 Attractive dividend yield of 2.72% adds income potential for short-term holders.
• 📉 P/E of 13.1 vs industry P/E of 41.0 suggests undervaluation.
• 📈 PEG ratio of 0.85 indicates reasonable valuation relative to growth.
• 📈 EPS of ₹19.0 and consistent PAT (₹200 Cr.) support earnings stability.
• 📈 DII holding increased by 0.32%, signaling growing domestic institutional interest.

⚠️ Limitation

• 📉 RSI at 36.7 and MACD at -4.41 indicate weak momentum and potential oversold conditions.
• 📉 Price is below both DMA 50 (₹266) and DMA 200 (₹255), confirming short-term downtrend.
• 📉 Volume (18.8 lakh) is slightly below 1-week average (21.1 lakh), showing mild participation.
• 📉 FII holding declined by 0.77%, reflecting cautious foreign sentiment.

🚫 Company Negative News

• 📉 Analysts have flagged concerns over global supply chain pressures and margin compression in IT distribution.

✅ Company Positive News

• 💻 REDINGTON benefits from strong partnerships with global tech brands and expanding digital transformation demand.
• 📈 Healthy quarterly profit and operational efficiency support investor confidence.

🏦 Industry

• 🖥️ Operates in IT distribution and services, a sector driven by enterprise tech adoption and digital infrastructure growth.
• 📊 Industry P/E of 41.0 reflects high growth expectations and premium valuations.

🧾 Conclusion

• 📈 REDINGTON is fundamentally strong and undervalued, making it a good candidate for swing trading despite short-term technical weakness.
• 📍 Optimal entry: ₹245–₹250 (near support and oversold RSI).
• 🚪 Exit if held: ₹270–₹275 (near DMA 50 and resistance zone) unless momentum strengthens further.
• ⚠️ Suitable for swing trading with moderate risk and close monitoring of volume and MACD crossover signals.

I can also help compare REDINGTON’s swing setup with peers like Ingram Micro or Savex to identify stronger relative momentum.