Redington Ltd.

NSE: REDINGTON · Trading & Distributors

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52W Range₹191 – ₹420

Snapshot

Unlock Redington Ltd.'s vital signs

Growth · Profitability · Valuation · Strength · Conviction

Company Overview

Business

Redington Limited is a global supply chain solutions provider specialising in the distribution of information technology, telecom, lifestyle, healthcare, and solar products. The company offers an extensive portfolio ranging from hardware and software distribution to cloud consulting, managed services, and on-demand manufacturing.

Business Model

The company operates as a supply chain intermediary, generating revenue through the distribution of technology products and the provision of value-added services such as cloud migration, IT consulting, and managed infrastructure support. It leverages a vast network to connect global technology vendors with enterprise and consumer markets.

Growth Outlook

Growth is driven by the increasing demand for cloud services, digital transformation, and enterprise IT infrastructure. The company continues to expand its footprint in high-growth segments like augmented reality, solar products, and advanced manufacturing solutions.

Key Risks

  • Inventory Obsolescence. Rapid technological advancements can lead to the devaluation of existing hardware and software inventory held by the company.
  • Vendor Concentration. The company's revenue is heavily dependent on key global technology vendors, making it vulnerable to changes in their distribution strategies or product availability.
  • Currency Volatility. As an international distributor, the company faces significant exposure to foreign exchange fluctuations which can impact profit margins on imported goods.
  • Low Margin Environment. The distribution business typically operates on thin margins, leaving little room for operational inefficiencies or pricing pressures from competitors.

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Key Metrics

REVENUE

₹1,28,133 Cr

TTM · consolidated

+23.2%YoY

NET PROFIT

₹1,505 Cr

TTM · consolidated

-18.1%YoY

EPS

₹21.76

TTM · consolidated

+4.1%YoY

RETURN ON EQUITY

15.9%

TTM · consolidated

-5.2 ppYoY

RETURN ON CAPITAL EMPLOYED

23.2%

TTM · consolidated

-4.9 ppYoY

P/E

18.3×

Q1 FY27 · consolidated

18.3 vs 24.4x5Y avg

EV/EBITDA

12.1x

Q1 FY27 · consolidated

12.1 vs 18.2x5Y avg

EBITDA MARGIN

2.1%

TTM · consolidated

-0.1 ppYoY

NET PROFIT MARGIN

1.3%

Q1 FY27 · consolidated

+0.4 ppYoY

DEBT TO EQUITY

0.4%

Q1 FY27 · consolidated

+0.1 ppYoY

Peers · Trading & Distributors

CompanyMkt CapP/E (TTM)EV/EBITDARev Gr YoYEBITDA MgnROEROCE1Y Return
Redington Ltd.REDINGTON
₹31,330 Cr18.3×12.1023.2%2.1%15.9%23.2%+42.6%
MMTC Ltd.MMTC
₹9,070 Cr18.9×123.10—-131.4%23.4%28.0%-13.9%
MSTC LimitedMSTCLTD
₹5,296 Cr21.2×14.9421.0%84.6%28.5%37.1%+43.4%
Vintage Coffee And Beverages LimitedVINCOFE
₹2,678 Cr192.4×106.9890.0%8.0%2.8%4.1%+22.2%
BN AgrochemBNAGROCHEM
₹2,023 Cr155.0×465.7884.5%0.5%4.0%0.8%-39.9%
Creative NewtechCNL
₹1,721 Cr24.9×17.9349.1%4.1%22.4%31.9%—

As of Q1 FY27

Financials