Is Redington overvalued or undervalued?

As of 4 July 2025, Redington's valuation grade has moved from expensive to fair, indicating a more favorable assessment of its market position. The company is currently fairly valued, with a PE ratio of 22.15, an EV to EBITDA of 12.76, and a dividend yield of 4.15%. In comparison to its peers, Tejas Networks is rated attractive with a higher PE of 27.91, while DC Infotech also holds a fair rating with a PE of 26.99.
Redington's financial metrics suggest it is positioned well within its industry, particularly with a ROCE of 17.85% and ROE of 12.67%. Notably, the company has outperformed the Sensex significantly over various time frames, including a 56.59% return year-to-date compared to the Sensex's 6.77%. This performance reinforces the view that Redington is fairly valued in the current market landscape.