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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

SMT Engineering

Redington

Vintage Coffee

RRP Defense

Elitecon Inter.

Arisinfra Solu.

MSTC

Ravindra Energy

MMTC

BN Agrochem

TCC Concept

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 15.74%
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)

Positive results in Dec 25

INVENTORY TURNOVER RATIO(HY) Highest at 15.86 times
NET SALES(Q) Highest at Rs 30,921.73 cr
PBDIT(Q) Highest at Rs 625.90 cr.

With ROCE of 19.1, it has a Attractive valuation with a 1.8 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 -4.33%, its profits have fallen by -0%

High Institutional Holdings at 79.27%

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

Below par performance in long term as well as near term

Along with generating -4.33% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

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, Medium Return

Absolute

Risk Adjusted

Volatility

Redington

-4.33%

-0.09

50.94%

Sensex

-2.38%

-0.19

12.70%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.74%

EBIT Growth (5y)

14.51%

EBIT to Interest (avg)

7.60

Debt to EBITDA (avg)

1.22

Net Debt to Equity (avg)

0.14

Sales to Capital Employed (avg)

8.83

Tax Ratio

21.87%

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

1.89

EV to EBIT

9.16

EV to EBITDA

8.26

EV to Capital Employed

1.78

EV to Sales

0.16

PEG Ratio

Dividend Yield

3.12%

ROCE (Latest)

19.14%

ROE (Latest)

13.64%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Bullish

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

9What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 15.86 times

NET SALES(Q)

Highest at Rs 30,921.73 cr

PBDIT(Q)

Highest at Rs 625.90 cr.

PBT LESS OI(Q)

Highest at Rs 500.54 cr.

PAT(Q)

Highest at Rs 435.80 cr.

-1What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.73 times

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Here's what is working for Redington

Profit After Tax (PAT) - Quarterly

At Rs 435.80 cr has Grown at 41.9% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 307.21 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Inventory Turnover Ratio- Half Yearly

Highest at 15.86 times and Grown

each half year in the last five half yearly periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Sales - Quarterly

Highest at Rs 30,921.73 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 625.90 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 500.54 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 500.54 cr has Grown at 26.0% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 397.15 Cr

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 435.80 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Here's what is not working for Redington

Debtors Turnover Ratio- Half Yearly

Lowest at 5.73 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio