Why is Redington Ltd ?
1
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)
2
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.
3
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 16.82%, its profits have fallen by -0%
4
High Institutional Holdings at 79.27%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
5
With its market cap of Rs 20,893 cr, it is the biggest company in the sector and constitutes 35.10% of the entire sector
- Its annual Sales of Rs 112,389.01 are 93.22% of the industry
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
16.82%
0.34
49.96%
Sensex
7.07%
0.61
11.53%
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
0
Institutional Holding
79.27%
ROCE (avg)
25.96%
ROE (avg)
18.34%
Valuation Key Factors 
Factor
Value
P/E Ratio
17
Industry P/E
29
Price to Book Value
2.32
EV to EBIT
11.10
EV to EBITDA
10.00
EV to Capital Employed
2.16
EV to Sales
0.20
PEG Ratio
NA
Dividend Yield
2.55%
ROCE (Latest)
19.14%
ROE (Latest)
13.64%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Bearish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bullish
No Trend
Technical Movement
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
Loading Valuation Snapshot...
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 CrMOJO 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 periodsMOJO 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 quartersMOJO 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 quartersMOJO 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 quartersMOJO 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 CrMOJO 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 quartersMOJO 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 periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio






