REDINGTON - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.4
| Stock Code | REDINGTON | Market Cap | 16,876 Cr. | Current Price | 216 ₹ | High / Low | 335 ₹ |
| Stock P/E | 14.5 | Book Value | 61.3 ₹ | Dividend Yield | 3.15 % | ROCE | 32.6 % |
| ROE | 35.0 % | Face Value | 2.00 ₹ | DMA 50 | 230 ₹ | DMA 200 | 251 ₹ |
| Chg in FII Hold | -0.45 % | Chg in DII Hold | -0.16 % | PAT Qtr | 223 Cr. | PAT Prev Qtr | 532 Cr. |
| RSI | 44.1 | MACD | -2.97 | Volume | 94,04,221 | Avg Vol 1Wk | 55,63,710 |
| Low price | 191 ₹ | High price | 335 ₹ | PEG Ratio | 0.93 | Debt to equity | 0.30 |
| 52w Index | 17.1 % | Qtr Profit Var | -51.5 % | EPS | 14.9 ₹ | Industry PE | 31.1 |
Chart & Trend Analysis:
REDINGTON is trading at ₹216, below both its 50 DMA (₹230) and 200 DMA (₹251), showing medium-term weakness. RSI at 44.1 indicates bearish momentum. MACD at -2.97 confirms negative bias. Bollinger Bands place price near the lower band, reflecting selling pressure. Volume (94,04,221) is significantly above the 1-week average (55,63,710), suggesting strong participation on the downside.
Momentum Signals:
- Short-term momentum is bearish with price struggling below DMA levels.
- Entry Zone: ₹205–₹210 (support near recent lows).
- Exit Zone: ₹225–₹230 (resistance near 50 DMA).
- Trend Status: Consolidating with bearish undertone; reversal not confirmed.
Positive
- Strong ROCE (32.6%) and ROE (35.0%) highlight efficiency.
- Dividend yield of 3.15% adds income appeal.
- EPS of ₹14.9 provides valuation comfort.
- PEG ratio of 0.93 suggests fair growth valuation.
Limitation
- Quarterly PAT declined sharply (₹223 Cr vs ₹532 Cr), showing earnings pressure.
- Price trading below both 50 DMA and 200 DMA confirms technical weakness.
- RSI below 50 and negative MACD indicate weak momentum.
- FII (-0.45%) and DII (-0.16%) outflows show reduced institutional confidence.
Company Negative News
- Quarterly profit variation (-51.5%) highlights earnings volatility.
- Bearish technical signals suggest limited near-term upside.
Company Positive News
- Strong efficiency ratios (ROCE and ROE) reinforce operational strength.
- Dividend yield supports long-term investor interest.
Industry
- Industry P/E at 31.1 highlights REDINGTON’s relative undervaluation (P/E 14.5).
- Sector supported by IT distribution and digital infrastructure demand.
Conclusion
REDINGTON shows weak technical momentum with price below key averages and bearish RSI/MACD. While fundamentals remain strong with efficiency and dividend yield, sharp profit decline and institutional outflows warrant caution. Tactical entries near ₹205–₹210 with exits around ₹225–₹230 provide a risk-managed setup. Long-term investors should monitor earnings recovery before fresh accumulation.