NSEI:REDINGTON

Stock Analysis Report

Redington (India)

Executive Summary

Redington (India) Limited provides supply chain solutions for information technology products, telecom, lifestyle, healthcare, and solar products in India and internationally.

Snowflake

Fundamentals

Flawless balance sheet average dividend payer.


Similar Companies

Share Price & News

How has Redington (India)'s share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

11.2%

REDINGTON

-0.07%

IN Electronic

2.4%

IN Market


1 Year Return

49.4%

REDINGTON

31.0%

IN Electronic

8.0%

IN Market

Return vs Industry: REDINGTON exceeded the Indian Electronic industry which returned 31% over the past year.

Return vs Market: REDINGTON exceeded the Indian Market which returned 8% over the past year.


Shareholder returns

REDINGTONIndustryMarket
7 Day11.2%-0.07%2.4%
30 Day7.1%2.2%2.5%
90 Day11.4%17.9%3.6%
1 Year54.4%49.4%32.0%31.0%10.3%8.0%
3 Year24.7%14.0%74.9%70.4%22.3%16.0%
5 Year47.0%29.4%88.6%82.8%42.8%29.3%

Price Volatility Vs. Market

How volatile is Redington (India)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Redington (India) undervalued compared to its fair value and its price relative to the market?

8.93x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: REDINGTON (₹119.95) is trading above our estimate of fair value (₹109.4)

Significantly Below Fair Value: REDINGTON is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: REDINGTON is good value based on its PE Ratio (8.9x) compared to the Electronic industry average (13.3x).

PE vs Market: REDINGTON is good value based on its PE Ratio (8.9x) compared to the Indian market (13x).


Price to Earnings Growth Ratio

PEG Ratio: REDINGTON is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: REDINGTON is overvalued based on its PB Ratio (1.2x) compared to the IN Electronic industry average (0.8x).


Next Steps

Future Growth

How is Redington (India) forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

6.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: REDINGTON's forecast earnings growth (6.9% per year) is below the savings rate (7.6%).

Earnings vs Market: REDINGTON's earnings (6.9% per year) are forecast to grow slower than the Indian market (18.4% per year).

High Growth Earnings: REDINGTON's earnings are forecast to grow, but not significantly.

Revenue vs Market: REDINGTON's revenue (9.4% per year) is forecast to grow slower than the Indian market (11.3% per year).

High Growth Revenue: REDINGTON's revenue (9.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: REDINGTON's Return on Equity is forecast to be low in 3 years time (12.8%).


Next Steps

Past Performance

How has Redington (India) performed over the past 5 years?

7.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: REDINGTON's earnings have grown by 7% per year over the past 5 years.

Accelerating Growth: REDINGTON's earnings growth over the past year (12.1%) exceeds its 5-year average (7% per year).

Earnings vs Industry: REDINGTON earnings growth over the past year (12.1%) underperformed the Electronic industry 36.9%.


Return on Equity

High ROE: REDINGTON's Return on Equity (12%) is considered low.


Return on Assets

ROA vs Industry: REDINGTON has a higher Return on Assets than the Electronic industry average last year.


Return on Capital Employed

ROCE Improving: REDINGTON's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Redington (India)'s financial position?


Financial Position Analysis

Short Term Liabilities: REDINGTON's short term assets (₹116.7B) exceeds its short term liabilities (₹80.4B)

Long Term Liabilities: REDINGTON's short term assets (116.7B) exceeds its long term liabilities (1.3B)


Debt to Equity History and Analysis

Debt Level: REDINGTON's debt to equity ratio (30.5%) is considered satisfactory

Reducing Debt: REDINGTON's debt to equity ratio has reduced from 80.9% to 30.5% over the past 5 years.

Debt Coverage: REDINGTON's debt is well covered by operating cash flow (82.4%).

Interest Coverage: REDINGTON's interest payments on its debt are well covered by EBIT (4.3x coverage).


Balance Sheet

Inventory Level: REDINGTON has a high level of physical assets or inventory.

Debt Coverage by Assets: REDINGTON's debt is covered by short term assets (assets are 8.995590x debt).


Next Steps

Dividend

What is Redington (India)'s current dividend yield, its reliability and sustainability?

2.75%

Current Dividend Yield


Dividend Yield vs Market

company2.8%marketbottom25%0.6%markettop25%2.4%industryaverage0.6%forecastin3Years3.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: REDINGTON's dividend (2.75%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: REDINGTON's dividend (2.75%) is in the top 25% of dividend payers in the Indian market (2.41%)

Stable Dividend: REDINGTON's dividend payments have been volatile in the past 10 years.

Growing Dividend: REDINGTON's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (24.6%), REDINGTON's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Redington (India)'s salary, the management and board of directors tenure and is there insider trading?

0.8yrs

Average management tenure


CEO

Raj Shankar (61yo)

5yrs

Tenure

0

Mr. Raj Shankar has been Managing Director of Redington (India) Ltd. since October 17, 2014. Mr. Shankar serves as Chairman of the Board at Redington Gulf FZE. Mr. Shankar serves as a Managing Director of  ...


Management Age and Tenure

0.8yrs

Average Tenure

53yo

Average Age

Experienced Management: REDINGTON's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Age and Tenure

3.4yrs

Average Tenure

56.5yo

Average Age

Experienced Board: REDINGTON's board of directors are considered experienced (3.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Raj Shankar (61yo)

    MD & Director

    • Tenure: 5yrs
  • Jitendra Senapati (53yo)

    Joint Chief Operating Officer

    • Tenure: 0.8yrs
  • Parthasarthi Neogi (61yo)

    Chief Development & Strategy Officer

    • Tenure: 0.8yrs
  • M. Muthukumarasamy (53yo)

    Chief Investor Relation Officer

    • Tenure: 0.6yrs
    • Compensation: ₹4.03m
  • S. Krishnan (46yo)

    CFO & Whole Time Director

    • Tenure: 0.4yrs
    • Compensation: ₹8.64m
  • Ramesh Natarajan (51yo)

    Joint Chief Operating Officer

    • Tenure: 0.8yrs
  • Gautam Hukku (53yo)

    Executive Vice President of Apple & Mobility Group

    • Tenure: 0yrs
  • R. Venkatesh (42yo)

    Executive Vice President of Enterprise Business Group

    • Tenure: 0yrs
  • Gurbir Bhatia (48yo)

    Chief Information Officer

    • Tenure: 0.08yrs
  • Jabez Selwyn

    Senior Vice President of Human Resources

    • Tenure: 0yrs

Board Members

  • Keith W. Bradley (56yo)

    Non-Executive Independent Director

    • Tenure: 6.5yrs
    • Compensation: ₹2.79m
  • J. Ramachandran (62yo)

    Non-Executive Independent Chairman

    • Tenure: 0yrs
    • Compensation: ₹3.21m
  • Udai Dhawan (46yo)

    Non-Executive Director

    • Tenure: 2.8yrs
  • Raj Shankar (61yo)

    MD & Director

    • Tenure: 5yrs
  • S. Krishnan (46yo)

    CFO & Whole Time Director

    • Tenure: 0.4yrs
    • Compensation: ₹8.64m
  • David Tu (61yo)

    Non-Executive Director

    • Tenure: 11yrs
  • V. Hariharan (57yo)

    Non-Executive Independent Director

    • Tenure: 7.3yrs
    • Compensation: ₹2.88m
  • Anita Belani (55yo)

    Independent Woman Director

    • Tenure: 0.5yrs
  • Balasubramanyan Ramaratnam (64yo)

    Independent director

    • Tenure: 3.4yrs
    • Compensation: ₹2.75m
  • Yi-Ju Chen (47yo)

    Non-Executive Director

    • Tenure: 1.8yrs

Company Information

Redington (India) Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Redington (India) Limited
  • Ticker: REDINGTON
  • Exchange: NSEI
  • Founded: 1961
  • Industry: Technology Distributors
  • Sector: Tech
  • Market Cap: ₹47.001b
  • Shares outstanding: 389.08m
  • Website: https://www.redingtonindia.com

Location

  • Redington (India) Limited
  • Centre Point
  • Ground Floor, Plot No. 8 and 11 (SP)
  • Chennai
  • Tamil Nadu
  • 600032
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532805BSE (Mumbai Stock Exchange)YesEquity SharesININRFeb 2007
REDINGTONNSEI (National Stock Exchange of India)YesEquity SharesININRFeb 2007

Biography

Redington (India) Limited provides supply chain solutions for information technology products, telecom, lifestyle, healthcare, and solar products in India and internationally. The company distributes IT ha ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 12:45
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.