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

Redington

MSTC

SMT Engineering

Vintage Coffee

Arisinfra Solu.

Elitecon Inter.

Ravindra Energy

MMTC

BN Agrochem

Yamuna Syndicate

TCC Concept

Why is Redington Ltd ?

Strong Long Term Fundamental Strength with a 16.50% CAGR growth in Net Sales

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.27 times
The company has been able to generate a Return on Capital Employed (avg) of 26.71% signifying high profitability per unit of total capital (equity and debt)

The company has declared Positive results for the last 3 consecutive quarters

NET SALES(Q) Highest at Rs 34,922.47 cr
PBDIT(Q) Highest at Rs 707.75 cr.
OPERATING PROFIT TO NET SALES(Q) Highest at 2.03%

With ROCE of 17, it has a Fair valuation with a 2.3 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 39.39%, its profits have risen by 59.8% ; the PEG ratio of the company is 0.2

High Institutional Holdings at 78.39%

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

Market Beating performance in long term as well as near term

Along with generating 39.39% returns in the last 1 year, the stock has outperformed BSE500 in the last 3 years, 1 year and 3 months

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

39.45%

0.79

49.67%

Sensex

-2.43%

-0.18

13.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

16.50%

EBIT Growth (5y)

11.75%

EBIT to Interest (avg)

7.28

Debt to EBITDA (avg)

1.22

Net Debt to Equity (avg)

0.17

Sales to Capital Employed (avg)

8.86

Tax Ratio

24.90%

Dividend Payout Ratio

33.12%

Pledged Shares

Institutional Holding

78.39%

ROCE (avg)

24.97%

ROE (avg)

17.36%

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

2.47

EV to EBIT

11.51

EV to EBITDA

10.59

EV to Capital Employed

2.26

EV to Sales

0.21

PEG Ratio

0.23

Dividend Yield

1.87%

ROCE (Latest)

17.03%

ROE (Latest)

15.76%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Bullish

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

20What is working for the Company

NET SALES(Q)

Highest at Rs 34,922.47 cr

PBDIT(Q)

Highest at Rs 707.75 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 2.03%

PBT LESS OI(Q)

Highest at Rs 567.71 cr.

PAT(Q)

At Rs 485.98 cr has Grown at 21.4% (vs previous 4Q average

EPS(Q)

Highest at Rs 6.22

-5What is not working for the Company

ROCE(HY)

Lowest at 16.98%

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 1,121.50 cr

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.52 times

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Here's what is working for Redington

Net Sales - Quarterly

Highest at Rs 34,922.47 cr and Grown

each quarter in the last five quarters

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 707.75 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 2.03%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 567.71 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 567.71 cr has Grown at 36.4% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 416.08 Cr

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 485.98 cr has Grown at 21.4% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 400.26 Cr

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 6.22

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Here's what is not working for Redington

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 1,121.50 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio- Half Yearly

Lowest at 5.52 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio