Redington

  • Market Cap: Small Cap
  • Industry: Trading & Distributors
  • ISIN: INE891D01026
  • NSEID: REDINGTON
  • BSEID: 532805
INR
267.00
-0.25 (-0.09%)
BSENSE

Feb 06

BSE+NSE Vol: 14.4 lacs

  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
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.
Ravindra Energy
MSTC
Polo Queen Ind.
MMTC
Yamuna Syndicate
TCC Concept

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
stock-recommendationReal-Time Research Report

Verdict Report

How much should you hold?

  1. Overall Portfolio exposure to Redington should be less than 10%
  2. 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%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
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
0
Institutional Holding
79.27%
ROCE (avg)
25.96%
ROE (avg)
18.34%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

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

Valuation Key Factors stock-summary

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...
stock-recommendationTechnicals

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
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
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

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 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