Redington Ltd

NSE: REDINGTON BSE: 532805

₹393.70

(0.43%)

Wed, 16 Sept 2026, 04:33 pm

Market Cap (in Cr)30661.19

PE Ratio18.10

Dividend1.53

Distribution Services

Electronics Distributors

24.5K

Redington Analysis

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%).

Cons

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

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.

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.

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).

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.

Pros

Cons

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

Pros

Cons

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.

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%).

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.

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.