Redington Ltd (REDINGTON) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Redington

Vintage Coffee

RRP Defense

BN Agrochem

Elitecon Inter.

MSTC

Ravindra Energy

Polo Queen Ind.

MMTC

TCC Concept

Arisinfra Solu.

Why is Redington Ltd ?

Low Debt Company with Strong Long Term Fundamental Strength

Healthy long term growth as Net Sales has grown by an annual rate of 15.82% and Operating profit at 17.22%
Company has a low Debt to Equity ratio (avg) at 0.09 times
The company has been able to generate a Return on Capital Employed (avg) of 32.56% signifying high profitability per unit of total capital (equity and debt)

With ROCE of 19.1, it has a Attractive valuation with a 2.2 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 31.53%, its profits have risen by 2% ; the PEG ratio of the company is 8.8

High Institutional Holdings at 79.27%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Market Beating Performance

The stock has generated a return of 31.53% in the last 1 year, much higher than market (BSE500) returns of 5.48%

With its market cap of Rs 20,815 cr, it is the biggest company in the sector and constitutes 36.03% of the entire sector

Its annual Sales of Rs 108,183.36 are 93.09% of the industry

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Redington should be less than 10%
Overall Portfolio exposure to Trading & Distributors should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Trading & Distributors)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Redington for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Redington

31.53%

0.63

50.40%

Sensex

5.37%

0.47

11.36%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.82%

EBIT Growth (5y)

17.22%

EBIT to Interest (avg)

7.93

Debt to EBITDA (avg)

1.22

Net Debt to Equity (avg)

0.14

Sales to Capital Employed (avg)

8.83

Tax Ratio

21.49%

Dividend Payout Ratio

39.77%

Pledged Shares

Institutional Holding

79.27%

ROCE (avg)

25.96%

ROE (avg)

18.34%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.33

EV to EBIT

11.33

EV to EBITDA

10.16

EV to Capital Employed

2.17

EV to Sales

0.21

PEG Ratio

8.75

Dividend Yield

2.53%

ROCE (Latest)

19.14%

ROE (Latest)

13.64%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

NET SALES(Q)

Highest at Rs 29,075.61 cr

PAT(Q)

At Rs 387.83 cr has Grown at 36.8% (vs previous 4Q average

-3What is not working for the Company

DPR(Y)

Lowest at 36.82%

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.57 times

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Here's what is working for Redington

Net Sales - Quarterly

Highest at Rs 29,075.61 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 387.83 cr has Grown at 36.8% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 283.47 Cr

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Here's what is not working for Redington

Dividend Payout Ratio (DPR) - Annually

Lowest at 36.82% and Fallen

each year in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Debtors Turnover Ratio- Half Yearly

Lowest at 0.57 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio