Redington Limited (REDINGTON) AI Stock Analysis

• Market Cap: ₹180.86B
• Dividend Yield: 2.48%
• Average Volume (3M): 993.16K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 1.27
• Revenue Growth: 17.44%
• EPS Growth: 43.45%
• Country: IN
• Employees: 5,037
• Sector: Services
• Sector Strength: N/A
• Industry: Information Technology Services
• EPS (TTM): 5.60
• Shares Outstanding: 781,774,400
• 10 Day Avg. Volume: 364,043
• 30 Day Avg. Volume: 993,159
• PEG Ratio: 0.35
• Price to Book (P/B): 2.06
• Price to Sales (P/S): 0.18
• P/FCF Ratio: 114.86
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 19.25
• Revenue Forecast (FY): ₹1.16T

• Rating: 76 Outperform
• Price Target: ₹261.00 ▼(-8.61% Downside)
• Action: Reiterated Date: 11/07/25
• Date: Action: Reiterated 11/07/25

Redington Limited's strong financial performance and attractive valuation are the primary drivers of its overall score. The company's robust revenue and profit growth, coupled with a low P/E ratio and decent dividend yield, make it an appealing investment. Technical indicators suggest moderate strength, though short-term caution is advised due to negative MACD.

Positive Factors

Consistent revenue and profit growth

Sustained revenue and profit growth indicates durable demand for distribution and services, enabling scale benefits, stronger vendor program access, and improved operating leverage. Over 2-6 months this supports capacity to invest in logistics and channel enablement.

Healthy margins and operational efficiency

Robust gross and operating margins reflect effective cost control and pricing in distribution and services. Durable margins provide cash to fund reinvestment, absorb competitive pressure, and sustain profitability across business cycles in the near-to-medium term.

Scale, vendor relationships and channel reach

Wide vendor relationships and geographic reach create a durable competitive advantage for securing volume discounts, vendor incentives, and reseller access. This distribution ecosystem supports recurring throughput and long-term operating leverage versus smaller competitors.

Negative Factors

Volatile operating and free cash flow

Inconsistent operating and free cash flow reduces financial flexibility for working capital, capex, and timing of investments. For a distribution business with large inventory flows this creates a persistent funding risk and potential reliance on external financing.

Moderate leverage and liability footprint

A moderate leverage profile limits balance sheet flexibility and raises sensitivity to interest costs and economic slowdowns. Reducing liabilities would strengthen resilience; until then leverage can constrain M&A, channel investments, or buffer against market shocks.

Dependence on vendor incentives and volume mix

Reliance on vendor incentives and high volumes makes margins and earnings sensitive to program changes or volume swings. Structural shifts in vendor terms or competitive pricing could compress spreads, making results more variable over the medium term.

Redington Limited Business Overview & Revenue Model

Company Description

Redington Limited provides supply chain solutions for information technology products, telecom, lifestyle, healthcare, and solar products in India and internationally. The company distributes IT hardware and software products, including consumer and commercial PCs, desktops, laptops, and MacBooks; tablets and phablets; deskjets, laserjets, and related consumables and accessories; smartphones and augmented reality/virtual reality-powered wearables; and networking, enterprise server and storage, as well as software solutions, and licensing and subscription support services. It also offers cloud consulting, migration, DevOps, integration, and security products, as well as managed services; and develops, manufactures, and markets digital printing solutions comprising printing presses, proprietary consumables, and workflow. In addition, the company is involved in the on demand part manufacturing business that consists of SLA, SLS, multi jet printing, color jet printing, vacuum casting, direct metal printing, metal die casting, CNC machines plastic and metals, and investment casting patterns. Further, it provides enterprise solutions and services, such as SOC and NOC services, converged network solutions, ICT and physical security solutions, and cloud services and solutions, as well as IT consulting, storage, data center, and virtualization solutions; and infrastructure managed services, including annual maintenance contracts, facility management services, managed print services, and IT outsourcing and helpdesk services. Additionally, the company offers spare part management; professional services comprising RBT and onsite repair, one time implementation projects, vendor managed support, and migrations and upgrades, as well as DOA validations, pats, and product screening; and logistics services. Redington (India) Limited was incorporated in 1961 and is based in Chennai, India.

How the Company Makes Money

Redington primarily makes money through distribution-led sales of technology products and solutions on behalf of global OEMs and technology vendors. Its core revenue stream comes from purchasing products from vendors (or acting as an authorized distributor) and selling them onward to downstream channels such as resellers, retailers, system integrators, and enterprise-focused partners; earnings are generated through the gross margin (the spread between its selling price and procurement cost) plus any vendor incentives tied to volumes, product mix, or performance (where applicable). In addition to pure product distribution, Redington can earn service-related revenue by providing value-added offerings that support distribution and adoption—such as logistics and supply-chain services, channel enablement, configuration/integration support, and solution aggregation—typically monetized via bundled margins, service fees, or program-based charges depending on the engagement. The company’s scale, breadth of vendor relationships, and reach into multiple geographies and partner networks are key factors in monetization because they drive throughput (higher volumes), improve operating leverage in warehousing/logistics, and strengthen eligibility for vendor programs; specific named partnerships and program terms are not available (null).

Redington Limited Financial Statement Overview

Summary

Redington Limited exhibits strong financial health with consistent revenue and profit growth, driven by efficient operations. The balance sheet is stable, though managing liabilities could enhance financial flexibility. Cash flow trends indicate areas for improvement in stability and growth consistency.

Income Statement

Redington Limited has demonstrated strong revenue growth, with a significant increase in total revenue over the years. The gross profit margin is healthy, reflecting efficient cost management. The net profit margin has improved, indicating effective control over expenses and strong profitability. EBIT and EBITDA margins are robust, showcasing operational efficiency.

Balance Sheet

The balance sheet reveals a stable equity position with a moderate debt-to-equity ratio, indicating a balanced approach to leveraging. Return on equity is commendable, showcasing strong shareholder returns. The equity ratio indicates a solid asset base funded by equity, though there is room for improvement in reducing liabilities.

Cash Flow

The cash flow statement shows volatility, with fluctuations in operating cash flow levels. Free cash flow growth has been inconsistent, reflecting challenges in maintaining steady cash generation. The operating cash flow to net income ratio suggests potential efficiency in cash earnings, but improvements are needed for consistency.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.08T	993.34B	894.69B	793.37B	626.12B	569.34B
Gross Profit	43.33B	52.20B	51.42B	35.36B	29.12B	23.01B
EBITDA	23.45B	20.53B	21.30B	22.52B	18.74B	14.24B
Net Income	17.29B	16.05B	12.19B	13.93B	12.80B	7.58B
Balance Sheet
Total Assets	297.93B	275.84B	243.94B	232.83B	184.16B	145.62B
Cash, Cash Equivalents and Short-Term Investments	13.71B	13.72B	16.12B	19.72B	36.47B	35.15B
Total Debt	26.09B	28.09B	29.58B	33.21B	8.31B	6.22B
Total Liabilities	203.97B	183.87B	165.32B	159.90B	123.08B	92.50B
Stockholders Equity	90.12B	87.21B	75.49B	69.27B	57.85B	49.39B
Cash Flow
Free Cash Flow	6.41B	1.56B	9.57B	-33.96B	8.63B	34.49B
Operating Cash Flow	7.37B	2.93B	10.79B	-32.34B	9.89B	34.97B
Investing Cash Flow	228.50M	5.60B	1.45B	1.76B	-565.20M	-4.97B
Financing Cash Flow	-8.66B	-11.71B	-13.81B	15.29B	-4.76B	-22.41B

Redington Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 285.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:REDINGTON, the sentiment is Negative. The current price of 285.6 is above the 20-day moving average (MA) of 248.35, above the 50-day MA of 260.51, and above the 200-day MA of 271.42, indicating a bearish trend. The MACD of -7.34 indicates Positive momentum. The RSI at 38.87 is Neutral, neither overbought nor oversold. The STOCH value of 12.17 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:REDINGTON.

Redington Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
REDINGTON	76 Outperform	₹180.86B	12.21	―	2.48%	17.44%	43.45%
VRLLOG	73 Outperform	₹43.37B	18.11	―	2.79%	4.74%	176.63%
BLS	70 Outperform	₹101.16B	20.31	―	0.31%	41.61%	44.11%
TCI	70 Outperform	₹73.49B	18.01	―	0.94%	9.97%	16.28%
ALLCARGO	57 Neutral	₹12.39B	―	―	19.52%	-15.70%	-343.97%
DELHIVERY	57 Neutral	₹316.47B	190.69	―	―	9.17%	1685.95%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%

Redington Limited Corporate Events

Redington Gets Tax Appeal Relief as INR 136 Crore Demand Quashed

Redington Limited has received a favourable order from the Commissioner of Income Tax (Appeals) for assessment year 2021-22, which quashes a tax demand of INR 136.25 crore previously raised by the Income Tax Department. The company, which had contested the assessment order issued in December 2023, said the appellate decision removes the liability with no adverse impact on its financial or operational activities, easing a potential overhang for stakeholders.

The order, dated 10 February 2026 and received by Redington on 20 February 2026, concludes the dispute for the relevant year without any findings of violations or contraventions against the company. The resolution of this sizeable demand strengthens Redington’s balance-sheet visibility and regulatory position, and the company will update details of the development on its website as part of its disclosure obligations under SEBI listing regulations.