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Redington Ltd

NSE: REDINGTON BSE: 532805

249.60

(-3.74%)

Thu, 12 Mar 2026, 06:44 am

Redington Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends paid are well covered by earnings (4x coverage).
  • Dividends after 3 years are expected to be well covered by earnings (3.8x coverage).
  • Redington (India)'s pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
  • Redington (India)'s dividend is above the markets top 25% of dividend payers in India (3.08%).
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Cons

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

future

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Pros

  • Performance (ROE) is expected to be above the current IN Electronic industry average.
  • An improvement in Redington (India)'s performance (ROE) is expected over the next 3 years.
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Cons

  • Cash flow for Redington (India) is expected to decrease over the next 2 years.
  • Redington (India)'s earnings are expected to grow by 4.3% yearly, however this is not considered high growth (20% yearly).
  • Redington (India)'s earnings growth is positive but not above the India market average.
  • Redington (India)'s earnings growth is positive but not above the low risk savings rate of 7.2%.
  • Redington (India)'s earnings are expected to decrease over the next year.
  • Redington (India)'s earnings are expected to increase but not above the low risk growth rate in 3 years time
  • Redington (India)'s net income is expected to increase but not above the 50% threshold in 2 years time.
  • Redington (India) is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
  • Redington (India)'s revenue is expected to increase but not above the 50% threshold in 2 years time.
  • Redington (India)'s revenue is expected to grow by 5.2% yearly, however this is not considered high growth (20% yearly).
  • Redington (India)'s revenue growth is positive but not above the India market average.

health

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Pros

  • Redington (India) is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Redington (India) is profitable, therefore cash runway is not a concern.
  • Redington (India) is profitable, therefore cash runway is not a concern.
  • Debt is well covered by operating cash flow (38.1%, greater than 20% of total debt).
  • Debt is covered by short term assets, assets are 5.4x debt.
  • Redington (India)'s cash and other short term assets cover its long term commitments.
  • The level of debt compared to net worth has been reduced over the past 5 years (72.3% vs 54.1% today).
  • Interest payments on debt are well covered by earnings (EBIT is 4.2x coverage).
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Cons

  • Redington (India)'s level of debt (54.1%) compared to net worth is high (greater than 40%).
  • High level of physical assets or inventory.

management

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Pros

  • The tenure for the Redington (India) board of directors is about average.
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Cons

  • The average tenure for the Redington (India) management team is less than 2 years, this suggests a new team.

misc

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Pros

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    Cons

    • Redington (India) has significant price volatility in the past 3 months.

    past

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    Pros

    • Redington (India)'s year on year earnings growth rate has been positive over the past 5 years.
    • Redington (India) used its assets more efficiently than the IN Electronic industry average last year based on Return on Assets.
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    Cons

    • Redington (India)'s 1-year earnings growth is less than its 5-year average (1.4% vs 6.5%)
    • Redington (India)'s use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
    • Redington (India) has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
    • Redington (India)'s earnings growth has not exceeded the IN Electronic industry average in the past year (1.4% vs 10.2%).

    value

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    Pros

    • Redington (India) is good value based on earnings compared to the IN Electronic industry average.
    • Redington (India) is good value based on earnings compared to the India market.
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    Cons

    • Redington (India)'s share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
    • Redington (India)'s share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
    • Redington (India) is overvalued based on assets compared to the IN Electronic industry average.
    • Redington (India) is poor value based on expected growth next year.
    • 532805 underperformed the Electronic industry which returned 0.1% over the past year.
    • 532805 underperformed the Market in India which returned -14.5% over the past year.
    • BSE:532805 is down -6.9% underperforming the Electronic industry which returned 0.9% over the past month.
    • BSE:532805 is down -6.9% underperforming the market in India which returned 8% over the past month.

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