Redington (REDINGTON)

FairStock Score: 85/100 — HIGH CONVICTION

Score breakdown: P/E: 2/3 · ROCE: 1/2 · Growth: 1/2 · Dividend: 1/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Redington is a trading and distribution business. I like that it earns ROE 20.23% and ROCE 18.90% with Debt/Equity 0.27; that suggests capital efficiency and a conservative balance sheet. Piotroski F-Score 7/9 and Altman Z-Score 5.13 reinforce financial strength. It generated FCF ₹840 Cr and pays a 1.80% dividend yield. Growth is striking: Sales Growth 62.62% and Profit Growth 60.34%, though the 5-year revenue CAGR of 14.06% is more sober. Latest quarter sales were ₹30,922 Cr with net profit ₹413 Cr. At ₹334.05, market cap is ₹26,115 Cr, P/E 15.36, P/B 2.57, PEG 0.68. That PEG looks cheap if growth persists. But I must apply Graham's caution. Graham Number is ₹238.01, margin of safety is -17.83%; DCF intrinsic value is ₹184.68. So the price is above both intrinsic anchors. EV/EBITDA 67.72 appears rich. Promoter holding is 0.00%, which is unusual and gives no owner-operator alignment signal. The moat? Distribution is competitive; scale and relationships matter, but these figures alone do not prove a durable moat. The stock trades within a 52W range of ₹191.31–₹419.55. FairStock Score 85/100 is high conviction, but not a substitute for price discipline. I would wait for a wider margin of safety. This looks like a fast grower with decent returns, but valuation is not Graham-cheap. Watch working capital, FCF conversion, promoter holding, and whether high growth converts into durable profits.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer