Check Before You Invest : Redington Ltd

BSE: 532805 NSE: REDINGTON ISIN: INE891D01026

| Sector: Miscellaneous | Industry: Trading

Snapshot

Q.1 Which industry/sub-sector does Redington Ltd belong to?

Redington Ltd belongs to the Miscellaneous sector, operating specifically within the Trading segment.

Q.2 Is Redington Ltd a good quality company?

Redington Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is Redington Ltd undervalued or overvalued?

Redington Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Redington Ltd a good buy now?

Redington Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Redington Ltd?

Redington Ltd revenue growth is 18.6% for FY-2025, which is below its 5-year CAGR of 21.29%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Redington Ltd?

Redington Ltd Return on capital employed is 33.49% for FY-2025, which is in line with its 5-year historical median of 33.49%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.3 Return on Asset of Redington Ltd?

Redington Ltd Return on Asset is 11.89%, which is in line with its 5-year historical median of 11.89%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of Redington Ltd?

Redington Ltd Return on equity is 35.17% for FY-2025, which is in line with its 5-year historical median of 35.17%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Redington Ltd?

Redington Ltd Cash conversion cycle is 32 days, above its 5-year historical median of 23 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	4.03	4.01
ROE	35.17	35.17
ROCE	33.49	33.49
Cash Conversion Cycle	32 days	23 days

Q.6 Gross Profit margin of Redington Ltd?

Redington Ltd Gross profit margin which is the profit after deduction of direct costs, is 3.6% for FY-2025, which is in line with its 5-year median of 3.6%, indicating stable margins.

Q.7 Operating Profit Margin of Redington Ltd?

Redington Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 2.39% for FY-2025, which is in line with its 5-year median of 2.44% indicating stable margins.

Q.8 Net Profit Margin of Redington Ltd?

Redington Ltd Net Profit Margin is 2.95% for FY-2025, is in line with with its 5-year median of 2.95%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	3.6	3.6
Operating Profit Margin	2.39	2.44
Net Profit Margin	2.95	2.95

Q.9 Debt to Equity ratio of Redington Ltd?

Redington Ltd Debt-to-Equity ratio is 0.30, which is above with the industry average of 0.17, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Redington Ltd?

Redington Ltd Debt to cash flow from operations is 14.66, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Redington Ltd?

Promoters hold 0.00% of the Redington Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Redington Ltd vs industry peers?

Redington Ltd revenue CAGR is 21.29%, compared to the industry median CAGR of 12.68%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	18.6	12.7
Gross Profit Growth	29.9	17.9
Operating Profit Growth	13.6	15.5
Net Profit Growth	33.6	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	4.03	0.81
ROE	35.17	2.6
ROCE	33.49	3.8
Cash Conversion Cycle (days)	31.67	61

Valuation & price assessment

Q.1 Stock return of Redington Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 15% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	15%	19.3%	7.7%	-14.1%

Q.3 Valuation ratios of Redington Ltd vs historical?

The current P/E is similar that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	14.49	13.89	33.44
Price to Book	3.37	4.45	1.58
Price to Sales	0.29	0.40	2.20
EV to EBITDA	11.18	10.79	14.05

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