Redington (India) Ltd Stock Analysis

BSE: 532805 | NSE: REDINGTON | Trading | Mid Cap

BSE Share Price Aug 16, 12:35
145.50 -1.90 (-1.29%)

DeciZen - Make an Informed Decision on Redington

Overall Rating

1. Quality

2. Valuation

Somewhat overvalued

3. Price Trend

Redington Price Chart

P/E Ratio (SA) :
11.64
Market Cap :
11,518.8 Cr.
52-wk low :
109.6
52-wk high :
179.3
Bole Toh?

1. Is Redington (India) Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Redington (India) Ltd is a good quality company.

2. Is Redington (India) Ltd undervalued or overvalued?

The key valuation ratios of Redington (India) Ltd's currently when compared to its past seem to suggest it is in the Somewhat overvalued zone.

3. Is Redington (India) Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Redington (India) Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Redington:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Redington (India) Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good

Value Creation

Value Creation Index Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
ROCE % 14.5%15.2%13.6%13.5%13.4%11.2%10.4%21.2%12.5%41.2%-
Value Creation Index 0.00.1-0.0-0.0-0.0-0.2-0.30.5-0.1NA-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 10,41011,26212,02112,63815,75914,84416,85118,63322,72127,01929,271
YoY Gr. Rt. %-8.2%6.7%5.1%24.7%-5.8%13.5%10.6%21.9%18.9%-
Adj EPS 2.12.42.22.32.92.526.33.712.112.7
YoY Gr. Rt. %-13.7%-10.4%8.3%23.1%-14.9%-18.4%215.5%-42.2%230.4%-
BVPS (₹) 13.415.91719.220.121.120.623.226.232.634.5
Adj Net Profit 169193173187230196155491284943989
Cash Flow from Ops. 14844.319529.296.1142323240870670-
Debt/CF from Ops. 4.28.11.516.47.45.42.64.900-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 11.2%11.4%17%18.9%
Adj EPS 21.3%33.2%82%230.4%
BVPS 10.410.116.524.4
Share Price 15.5% 14.7% 41.6% -15.1%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % 17.116.513.212.914.611.99.428.814.740.837.8
Op. Profit Mgn % 2.92.52.42.62.52.422.22.22.52.5
Net Profit Mgn % 1.61.71.41.51.51.30.92.61.33.53.4
Debt to Equity 0.60.30.20.30.40.50.50.700-
Working Cap Days 676980888090868468700
Cash Conv. Cycle 242729343237342921130

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 37.80%

Sales growth is growing at healthy rate in last 3 years 17.04%

Net Profit is growing at healthy rate in last 3 years 82.01%

Sales growth is good in last 4 quarters at 21.61%

No data to display

Latest Financials - Redington (India) Ltd.

Standalone Consolidated
TTM EPS (₹) 12.7 17.4
TTM Sales (₹ Cr.) 29,271 65,993
BVPS (₹.) 34.5 78.1
Reserves (₹ Cr.) 2,538 5,950
P/BV 4.28 1.89
PE 11.64 8.48
From the Market
52 Week Low / High (₹) 109.55 / 179.25
All Time Low / High (₹) 8.01 / 179.25
Market Cap (₹ Cr.) 11,519
Equity (₹ Cr.) 156.3
Face Value (₹) 2
Industry PE 104.9

Management X-Ray of Redington :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

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Key Ratios of Redington

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)

News

About Redington (India) Ltd

Established in 1993, Redington has traversed an eventful and exciting journey to evolve from very humble beginnings into the company. The incredible journey has seen the company emerges from one brand, one product category, and one market into a billions of distribution and supply chain solutions provider to over many international brands in IT and Mobility spaces, serving various emerging markets. Redington (India) Limited is a public limited Company domiciled in India, incorporated under the provisions of the Companies Act, 1956. The company’s equity shares are listed on the bourses of BSE Limited and National Stock Exchange of India (NSE) Limited.

Redington is a leading distributor of technology & communication products and provider of services and solutions across various emerging markets. The company’s offerings include PC, Notebooks, Tablets, Printing Solutions, Servers, Storage, Software, Networking Solutions, Security Solutions, Smart Phones and Cloud.

Besides India and Turkey, its operations span across markets in South Asia, the Middle East and Africa. As a premier distributor for many global technology vendors, it leveraged a powerful network of thousands of channel partners.

Through two wholly-owned subsidiary companies, it also operates in the field of Third-party Logistics & Supply Chain Solutions and in the field of Repair and Maintenance of Technology Products & Infrastructure. These adjacencies allow the company to widen its coverage of technology distribution value chain.

Today, new-age technologies like Artificial Intelligence (AI), Robotics, Big Data and Analytics, Internet of Things (IoT), and 5G communications are opening new possibilities and new opportunities for tomorrow.

Business area of the company

The company is engaged in the business of distribution of information technology, mobility and other technology products besides supply chain solutions. The company has an operating branch in Singapore. The Company, its subsidiaries and associate operates in India, Middle East, Turkey, Africa, and South Asian countries.

Awards

FY2016-17

  • IBM -Best Value Added Distributor for IBM software subscription and support Business
  • IBM- Asia Pacific IBM 2017 choice award for Top Value Added Distributor
  • Oracle- Iaas/Paas Cloud Transformation Partner of the year
  • Microsoft Volume Licensing Business- Best Distributor of the year 2016
  • Palo Alto Networks- Best Distributor of the year 2016 - APAC
  • SonicWall- Business Excellence award for distributor of the year 2015 -16
  • Schneider Electric-Top Distributor in India
  • Aruba- Top Distributor in India
  • Lenovo- Best Premium and Mainstream performance award Q2 2016
  • Lenovo- Best TI partner for premium and mainstream models
  • Lenovo- Best TI Partner in the Data Centre Group Category 2016-17
  • Quest- Best Distributor of the year 2016
  • HP Indigo- Winner - Supplies excellence 2016
  • HP Indigo- No. 1 world Wide with Press SW Upgrade
  • Autodesk- FY 17 VAD Growth Award for India Region
  • Autodesk- FY17 Best Partner Marketing
  • Service Tax top assessee award in Chennai Commissionerate III (FY 2016-17)

FY2017-18

  • Dell EMC - Best Distributor Award
  • HP - Best MOQ Distributor of the Year
  • HP - Best Commercial Print Distributor of the Year
  • HP - Best Distributor - BNB MOQ 2017
  • HP - Best Distributor - AMD
  • Notebooks Growth 2017 HP - Best Distributor - (BNB & Desktop) - MOQ 2017
  • HP Enterprise - Winner - Representation of Digital Strategy
  • HP Enterprise - Best Distributor FY17-18 - Attach Services
  • HP Indigo - No. 1 World-Wide Channel Press Software Upgrade
  • HP Indigo - Winner - Service Excellence 2017
  • HP Indigo - Special Recognition - Service Operational Excellence 2017
  • HP Indigo - Special Recognition - Installed Base Excellence 2017
  • HP Indigo - Special Recognition -
  • Market Development Excellence 2017
  • HP Indigo - Outstanding Contribution to World Wide HP Indigo Service Channel Partner Community Lenovo - Exemplary award for premium category contribution - Partner meet 2017
  • Lifesize - APAC Distribution Growth Award 2017
  • McAfee - Best Distributor in India Oracle - Excellence Award - PAAS &
  • IAAS cloud transformation of the Year 
  • Oracle - VAD Cloud Innovation and Best Practice 
  • Palo Alto Networks - Best Distributor India FY 2017
  • Palo Alto Networks - Best Distributor - SAARC FY 2017
  • Sophos - Distributor of the Year (India) 2016-2017
  • VMWare - Best Distributor Award

FY2019-20

  • HP - Best National Distributor (Printing Systems) -2019
  • HP - Best Distributor (Premium Notebook, Consumer PC) - 2019
  • HP - Best Distributor IPS (Print & Supplies) - 2019
  • Dell Technologies - Excellence in Digital Marketing - 2019
  • Dell Technologies - Distributor of the Year - 2019
  • Autodesk - Operation Excellence Award - 2019
  • AWS - WWPS (India) APN Distribution Partner of the Year - 2019
  • ESRI - Most Valuable Partner - 2019
  • Lenovo - Highest growth Distributor for Thin & Light Laptops - 2019
  • PTC - Marketing Excellence Award - 2019
  • Sophos - Best Distributor - 2019

History and milestones

  • 1993: Acquired the Indian branch of Redington Pte. Limited Singapore
  • 1993: Commenced IT distribution operations, branch Operations in Western and Southern India and Distributions of HP’s IT Products
  • 1994: Distribution of Epson and Tripp Lite IT products and Samsung monitors, started service operations for IT products and operations in Northern India
  • 1995: Began operations in Eastern India; Distribution of Compaq and Philips products
  • 1996: Distribution of Intel products
  • 1997: Tied up with Microsoft for distribution of software products
  • 1998: Tied up with IBM APC and Canon for distribution of their products
  • 1999: The setup of a subsidiary, Redington Gulf FZE, for Middle East and African Markets
  • 1999: Installation of ERP John Brown and Associate (JBA) for Distribution
  • 2000: Moved into value added distribution space
  • 2002: Commenced call centre operations for servicing Compaq’s Presario range of products
  • 2003: Commenced distribution and servicing of Motorola mobile phones
  • 2004: Acquired Redington Gulf FZE
  • 2005: Acquired Redington Distribution Pte. Ltd. & Cadensworth India Ltd
  • 2005: Ventured into non IT and consumer durables
  • 2006: ChrysCapital, a well-known private equity fund, acquired 11 percent stake through their investment company Beethoven Limited, Mauritius
  • 2007: Shares Listed on BSE and NSE
  • 2007: Commenced distribution of Apple products
  • 2007: Set Up of High level repair centres in Chennai
  • 2008: Ranked 55th top global tech company & 3rd for total return to shareholders
  • 2008: Acquired Easyaccess Financial Services
  • 2008: Started Blackberry distribution
  • 2009: Automated distribution centres become operational in Chennai
  • 2009: made foray in 3PL/4PL services
  • 2010: TUV NORD awarded ISO 9001:2008 certification
  • 2010: TUV SUO Management Services Gmbh awarded ISO 9001: 2008 Certification
  • 2011: Standard Charted Private Equity acquired 11.99% stake in Redington (India)
  • 2011: Entered into strategic relationship with EMC for Distribution of their storage products through Cadensworth
  • 2012: Consolidated their shareholdings in its MEA operations
  • 2012: Started carrying out supply chain management business
  • 2013: Acquisition of 51% stake in Adeo IT Consulting services, Turkey
  • 2014: Divestment of entire stake in Easyaccess Financial Services
  • 2014: hiving of Support Services Division to ensure Support Services Limited
  • 2015: Invested in LinkPlus, a leading Oracle distributor in Turkey, having total stake of 80%
  • 2015: Launched the RedCloud portal
  • 2016: Merger of Nook Micro Distribution Limited with the company
  • 2017: Merger of Wholly owned Subsidiaries Cadensworth (India) Limited with the company
  • 2018: Redington evolved from promoter let to a broad-government and professionally managed entity
  • 2018: Redington launched new logo
  • 2018: Redington entered into 25th years of opeartions
  • 2019: Redington lists commercial papers on the bourses
  • 2019: SEBI’s approval for being classified as Listed Entity with no promoters
  • 2020: Auroma Logistics becomes wholly owned subsidiary of ProConnect India
  • 2020: Divestment of Ensure Support Services India, Wholly owned Subsidiary of Redington
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