Redington Limited (REDINGTON) AI Stock Analysis

• Market Cap: ₹220.73B
• Dividend Yield: 2.48%
• Average Volume (3M): 993.16K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 1.30
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ₹293.00 ▲(2.59% Upside)

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 earnings growth

Sustained top-line and EPS expansion indicates the company is growing throughput and improving profitability across its distribution operations. Over 2-6 months this underpins reinvestment capacity, supports channel leverage, and validates demand for its vendor solutions.

Healthy margins and operational efficiency

Robust gross and operating margins point to effective cost management and scalable distribution economics. Margin durability supports cash generation and the ability to fund value-added services, cushioning earnings through modest volume fluctuations over months.

Scale and broad vendor/channel reach

Large vendor relationships and multi-geography channel coverage create durable throughput advantages, enable better vendor program access, and improve logistics leverage. Scale supports consistent volume, bargaining, and resilience versus smaller competitors.

Negative Factors

Volatile operating cash flow and inconsistent FCF

Inconsistent operating cash conversion limits the firm’s ability to reliably fund capex, dividends, or discretionary deleveraging. Over a multi-month window this raises execution risk and constrains strategic flexibility despite strong reported earnings.

Moderate debt and room to reduce liabilities

A moderate leverage profile and remaining liabilities reduce balance-sheet resilience and borrowing headroom. If cash generation is uneven, servicing debt could limit investments in growth initiatives or channel expansion and increase sensitivity to demand shocks.

Dependence on vendor-driven margins and incentives

Business economics rely heavily on vendor programs and incentive schemes that can change with contract terms or vendor strategy. This structural dependence risks margin pressure if vendor terms shift or competition forces higher inventory turns to maintain incentives.

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 generates revenue primarily through the distribution of IT products, which includes hardware, software, and related services. The company operates on a wholesale model, purchasing large quantities of products from manufacturers and selling them to resellers and retailers at a markup. Key revenue streams include sales of networking equipment, servers, storage systems, and software licenses. Additionally, Redington offers value-added services such as logistics, supply chain management, and technical support, which further contribute to its earnings. Strategic partnerships with leading technology brands enhance Redington's market presence and allow it to tap into new revenue opportunities. The company may also benefit from recurring income through maintenance contracts and service agreements, which provide a steady cash flow.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.04T	993.34B	894.69B	793.37B	626.12B	569.34B
Gross Profit	41.63B	52.20B	51.42B	35.36B	29.12B	23.01B
EBITDA	22.28B	20.53B	21.30B	22.52B	18.74B	14.24B
Net Income	16.34B	16.05B	12.19B	13.93B	12.80B	7.58B
Balance Sheet
Total Assets	0.00	275.84B	243.94B	232.83B	184.16B	145.62B
Cash, Cash Equivalents and Short-Term Investments	13.72B	13.72B	16.12B	19.72B	36.47B	35.15B
Total Debt	0.00	28.09B	29.58B	33.21B	8.31B	6.22B
Total Liabilities	-91.97B	183.87B	165.32B	159.90B	123.08B	92.50B
Stockholders Equity	91.97B	87.21B	75.49B	69.27B	57.85B	49.39B
Cash Flow
Free Cash Flow	0.00	1.56B	9.57B	-33.96B	8.63B	34.49B
Operating Cash Flow	0.00	2.93B	10.79B	-32.34B	9.89B	34.97B
Investing Cash Flow	0.00	5.60B	1.45B	1.76B	-565.20M	-4.97B
Financing Cash Flow	0.00	-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: Negative
• RSI: Neutral
• STOCH: Neutral

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 266.03, above the 50-day MA of 272.21, and above the 200-day MA of 271.63, indicating a neutral trend. The MACD of -0.50 indicates Negative momentum. The RSI at 49.01 is Neutral, neither overbought nor oversold. The STOCH value of 79.62 is Neutral, 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	₹220.73B	12.51	―	2.48%	17.44%	43.45%
VRLLOG	73 Outperform	₹49.47B	20.71	―	2.79%	4.74%	176.63%
BLS	70 Outperform	₹119.08B	19.77	―	0.31%	41.61%	44.11%
TCI	70 Outperform	₹83.70B	18.66	―	0.94%	9.97%	16.28%
ALLCARGO	62 Neutral	₹15.91B	-9.83	―	19.52%	-15.70%	-343.97%
DELHIVERY	57 Neutral	₹335.16B	216.88	―	―	9.17%	1685.95%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%

Redington Limited Corporate Events

Redington Limited Announces Financial Results for Q2 2025

Redington Limited, a company listed on the National Stock Exchange of India and BSE Limited, has published its financial results for the quarter and half year ended September 30, 2025. The results were announced in compliance with Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and were published in the Business Standard and Makkal Kural newspapers. This announcement is part of the company’s ongoing commitment to transparency and regulatory compliance, potentially impacting its stakeholders by providing insights into its financial health and operational performance.

Redington Limited Reports Q2 & H1 FY26 Financial Results

Redington Limited announced its unaudited financial results for the quarter and half-year ending September 30, 2025. The results, approved by the Board of Directors, were reviewed by Deloitte Haskins & Sells and showed compliance with the SEBI regulations. This announcement is significant for stakeholders as it reflects the company’s financial health and adherence to regulatory standards, potentially impacting its market positioning.

Redington Limited Releases Q2 & H1 FY26 Earnings Presentation

Redington Limited has announced the release of its Earnings and Corporate Presentation for the second quarter and first half of the fiscal year 2026. This presentation, which will be discussed in an upcoming Analyst/Investors Conference call, is expected to provide insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and stakeholder interests.

Redington Limited Schedules Investor Meeting in Chennai

Redington Limited announced a scheduled meeting with investors and analysts, organized by Unifi Capital, to be held in Chennai on November 7, 2025. The meeting aims to engage with stakeholders, although no unpublished price-sensitive information will be discussed. This initiative reflects Redington’s commitment to transparency and maintaining strong investor relations.