Redington Ltd.
NSE: REDINGTONNIFTY500
Analyst consensus:Strongly constructive· 4 analysts
₹283.85-1.0%1Y
Last updated 02:54:40 IST· Public market feed (~15 min delay during market hours)
Redington Ltd.: A 30-second snapshot
Redington Ltd., an IT and consumer products distributor, trades at 213 as of 2026-05-12, representing a 34.96% drawdown from its 52-week high with the price below both the 50-DMA (225.45) and 200-DMA (257.73). The stock carries a PE of 9.4x against a 5-year revenue CAGR of 15.7%, though a debt-to-equity of 27.76 on a rising trend is a structural feature that distinguishes it from asset-light sector peers.
P/E
9.4
Forward P/E
8.7
ROE
—
Debt / Equity
27.76
Profit Margin
+1.6%
Div. Yield
+3.1%
5Y ROE > 15%
4/5
5Y FCF > 0
3/5
Quality
57/100
Recent context
- ·No news items were collected in this analytical run, meaning no event-driven context is available to explain the 20.7% price decline over the past 3 months.
- ·The nearest technical support level sits at 210.09, approximately 1.4% below the current price of 213; the next support is 191.31 (a further 8.9% lower), while resistance levels are clustered at 242.50, 279.15, and 285.
- ·Redington ranks 1st on quality score (57) and lowest on PE (9.4x) within its 6-stock Services sector peer group, though direct comparability is constrained by peers spanning logistics, aviation, and port infrastructure segments.
Strengths
- +PE of 9.4x is the lowest among listed Services sector peers (next lowest: ADANIPORTS at 29.4x), consistent with the distribution model where thin margins and high asset turnover are structural characteristics.
- +5-year revenue CAGR of 15.7% indicates sustained top-line scale expansion across the IT and consumer distribution channel in India and international markets.
- +Dividend yield of 3.11% provides an income component; quality score of 57 ranks first among the 6-stock sector peer group where peers range from 6 to 49.
- +Forward PE of 8.72x is below the trailing PE of 9.4x, indicating that current consensus earnings estimates point to year-on-year earnings growth.
Weaknesses
- −Debt-to-equity of 27.76 is exceptionally high for a non-financial distributor and is on a rising trend, materially increasing sensitivity to interest rate movements and credit conditions.
- −Profit margin of 1.57% leaves minimal buffer against operating cost increases or revenue shortfalls; earnings CAGR of 8.8% over 5 years trails revenue CAGR of 15.7%, signalling sustained margin dilution.
- −Price has declined 20.7% over the past 3 months and 12.02% over 12 months, remaining below both the 50-DMA and 200-DMA for an extended period; RSI of 41.82 reflects ongoing negative price momentum without an oversold signal.
- −ROE data is unavailable, and FCF was positive in only 3 of the assessed years, limiting the ability to assess capital efficiency or the sustainability of the dividend.
Open questions
- ?Does the debt-to-equity of 27.76 reflect working-capital-intensive distribution financing (inventory and receivables lines) that is typical and self-liquidating for this business model, or does it indicate structural balance-sheet stress?
- ?With earnings growth (8.8% 5y CAGR) consistently below revenue growth (15.7% 5y CAGR), what are the primary drivers of margin compression and is the trend stabilising?
- ?Given that ROE data is unavailable and FCF was positive in only 3 of the assessed years, how does the company fund its 3.11% dividend yield, and what is the payout ratio relative to reported earnings?
- ?The stock has declined 34.96% from its 52-week high with no news catalyst available in this run; are there company-specific developments or macro factors such as IT spending cycles or currency movements driving the price action?
Peer comparison: Services
Ranks 1 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| REDINGTON | Redington Ltd.You're viewing | 9.4 | — | 57 |
| Industry avg | across 5 peers | 40.3 | +15.6% | 31 |
| ADANIPORTS | Adani Ports and Special Economic Zone Ltd. | 29.4 | +15.6% | 49 |
| GMRAIRPORT | GMR Airports Ltd. | — | — | 35 |
| BLUEDART | Blue Dart Express Ltd. | 49.7 | — | 35 |
| CONCOR | Container Corporation of India Ltd. | 30.7 | — | 28 |
| INDIGO | InterGlobe Aviation Ltd. | 51.2 | — | 6 |
Technical state
Current price
₹213.00
SMA 50
₹225.45
SMA 200
₹257.73
RSI (14)
41.8 (neutral)
From 52w high
-35.0%
1Y return
-12.0%
3M return
-20.7%
50-DMA
Below
200-DMA
Below
Algorithmic support levels
₹210.09
₹191.31
Algorithmic resistance levels
₹242.50
₹279.15
₹285.00
Risk flags
- highDebt-to-equity of 27.76 is exceptionally elevated for a non-financial services distributor; debt trend is rising, compounding solvency exposure relative to a profit margin of only 1.57%.
- mediumPrice is 34.96% below the 52-week high, down 20.7% over 3 months and 12.02% over 12 months; currently trading below both the 50-DMA (225.45) and 200-DMA (257.73), with the nearest support at 210.09 only 1.4% below current price of 213.
- mediumROE data is unavailable, and FCF was positive in only 3 of the available years; earnings growth 5y of 8.8% lags revenue growth 5y of 15.7%, indicating margin compression over the period.
- lowZero news items collected for this run; news-based sentiment and any recent event-driven context are entirely absent, limiting signal quality for the news dimension.
- lowPeer group comparability is limited: 4 of 5 peers show null ROE and null 1-year price change; sector ranking of 1st on PE (9.4x vs peer median ~30-51x) reflects a distribution business model, not direct comparability with logistics/aviation peers.
Cross-section contradictions
- Revenue has compounded at 15.7% over 5 years and the stock trades at a PE of 9.4x (lowest among listed peers), yet the price has declined 12% over 12 months and sits 34.96% below its 52-week high with zero news items available to explain the divergence.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 12 May 2026 · rotates through NIFTY 500 every ~5 days