Redington Limited (REDINGTON) AI Stock Analysis

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Redington Limited

(NSE:REDINGTON)

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Rating:53Neutral

Price Target:INR 332.00▼(-5.03% Downside)

Action:reiterated

Date:11/07/26

The score is held back primarily by weak cash-flow quality (negative operating and free cash flow in 2026) alongside margin compression, despite strong revenue growth and a generally supportive balance sheet. Technical indicators also point to a weak near-term trend, while valuation (moderate P/E and a modest dividend yield) provides partial offset.

Positive Factors

Strong Revenue GrowthRevenue more than doubled across the period, demonstrating sustained expansion in the company’s distribution activity and customer reach. This scale supports operating relevance with technology brands and provides a durable platform for future growth, even if profitability remains constrained.

Negative Factors

Weak Cash ConversionNegative operating and free cash flow weakens the quality of reported earnings and can increase reliance on working-capital management or external funding. The reversal from prior positive periods indicates cash conversion is volatile, creating execution risk even while revenue continues to grow.

Redington Limited (REDINGTON) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 273.39B
Dividend Yield: 1.72%
Average Volume (3M): 367.86K
Price to Earnings (P/E): 14.7
Beta (1Y): 1.22
Revenue Growth: 31.26%
EPS Growth: 7.25%
Country: India
Employees: 13,457
Sector: General
Sector Strength: 55
Industry: Technology Distributors

Redington Limited Business Overview & Revenue Model

Company Description

Redington Limited, founded in Chennai, India, in 1961, operates internationally as a comprehensive provider of supply chain solutions, specializing across information technology, telecommunications, lifestyle products, healthcare, and solar energy se...

Redington Limited Financial Statement Overview

Summary

Strong multi-year revenue growth supports the business outlook, and leverage is moderate with improving debt-to-equity and mid-teens ROE. However, profitability has thinned (margin compression and net income decline in 2026) and cash generation is the key weakness, with operating and free cash flow turning negative in 2026 after prior positives.

Income Statement

62Positive

Balance Sheet

71Positive

Cash Flow

35Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	1.42T	1.19T	992.91B	893.10B	793.37B	626.12B
Gross Profit	48.44B	40.40B	38.07B	37.83B	35.77B	29.12B
EBITDA	27.71B	22.39B	28.70B	21.30B	22.52B	18.74B
Net Income	18.54B	14.90B	16.05B	12.19B	13.93B	12.80B
Balance Sheet
Total Assets	415.83B	338.39B	275.84B	243.94B	232.83B	184.16B
Cash, Cash Equivalents and Short-Term Investments	11.31B	11.10B	13.72B	16.12B	19.72B	36.47B
Total Debt	63.64B	28.42B	28.09B	29.58B	33.21B	8.31B
Total Liabilities	306.96B	234.15B	183.87B	165.32B	159.90B	123.08B
Stockholders Equity	107.74B	101.61B	87.21B	75.49B	69.27B	57.85B
Cash Flow
Free Cash Flow	0	-1.67B	1.56B	9.57B	-33.96B	8.63B
Operating Cash Flow	0	-96.40M	2.93B	10.79B	-32.34B	9.89B
Investing Cash Flow	0	-937.30M	5.60B	1.45B	1.76B	-565.20M
Financing Cash Flow	0	-6.75B	-11.71B	-13.81B	15.29B	-4.76B

Redington Limited Technical Analysis

Technical Analysis SentimentPositive

Last Price349.60

Price Trends

50DMA376.78Negative

100DMA341.91Positive

200DMA286.67Positive

Market Momentum

MACD-9.49Negative

RSI46.72Neutral

STOCH55.99Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:REDINGTON, the sentiment is Positive. The current price of 349.60 is below the 20-day moving average (MA) of 354.60, below the 50-day MA of 376.78, and above the 200-day MA of 286.67, indicating a neutral trend. The MACD of -9.49 indicates Negative momentum. The RSI at 46.72 is Neutral, neither overbought nor oversold. The STOCH value of 55.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:REDINGTON.

Redington Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:REDINGTON against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:HCLTECH	82Outperform	INR 3.74T	20.36	―	4.35%	12.76%	7.96%
IN:WIPRO	75Outperform	INR 1.94T	15.26	―	4.11%	8.22%	-1.14%
IN:MPHASIS	74Outperform	INR 460.94B	23.38	―	2.52%	15.46%	11.73%
IN:LTIM	73Outperform	INR 1.27T	26.78	―	2.52%	14.67%	7.26%
IN:TECHM	73Outperform	INR 1.73T	28.29	―	2.89%	13.60%	23.11%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:REDINGTON	53Neutral	INR 280.34B	14.74	―	1.72%	31.26%	7.25%

* General Sector Average

Performance Comparison

IN:REDINGTON and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:REDINGTON	Redington Limited	349.60	59.47	20.50%
IN:HCLTECH	HCL Technologies Limited	1376.60	-158.84	-10.34%
IN:LTIM	LTIMindtree Limited	4252.25	-1486.65	-25.90%
IN:MPHASIS	Mphasis Limited	2459.00	-160.08	-6.11%
IN:TECHM	Tech Mahindra Limited	1765.40	360.37	25.65%
IN:WIPRO	Wipro Limited	194.50	-40.67	-17.29%

Redington Limited Corporate Events

Redington Q2 FY27 Revenue Rises 48% to ₹43,002 Crore

Nov 4, 2026

Redington Limited reported Q2 FY27 consolidated revenue of ₹43,002 crore, up 48% year on year, while profit after tax excluding exceptional items rose 50% to ₹581 crore, with a 1.35% margin. India revenue increased 67% and Middle East and Africa reve...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Nov 07, 2026

Redington Limited AI Stock Analysis