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Redington
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An integrated supply chain solution provider, Redington India Limited was incorporated on 2nd May 1961. Being the second largest distributor of IT products in India, the company and through all its subsidiaries distributes products from over 220 leading manufacturers, services over 39,500 channel partners in India. It is engaged in distribution of Information Technology, mobility and other technology products besides supply chain solutions. The company successfully transformed itself from a pure IT products distribution firm with traditional cash and carry model to a leading integrated supply chain solution provider that includes non IT products and involves the management of inventory of greater than 45,000 SKU's (stocking units). It provides logistics, supply chain management and other support services in India, Middle East, Turkey, Africa and South Asian countries.
The Company commenced its operations in the year 1993 by distributing information technology products. From then on the company has continuously expanded its operations across India covering a broad range of IT and Telecom Products. During the year 1994, commenced service operations for IT products, distribution of Epson and Tripplite IT products, and distribution of Samsung monitors, also commenced its operations in Northern India. A year after, in the year 1995, Redington had started its operations in Eastern India, also in the same year the company had commenced distribution of Compaq and Philips products. The distributions of Intel products were started by the company in the year 1996. The Company made tie-up with Microsoft for distribution of software products in the year 1997 and also made tie-up with IBM, APC and Canon for distribution of their products in the year 1998.
Hewlett Packard honored the company as an excellent service provider' in the year of 2000. The call centre operations of the company were started in the year 2002 for servicing Compaq's Presario range of products and ranked Best Distributor India' for the year 2002-2003 by Computer Associates. Commenced distribution and servicing of Motorola mobile phones during the year 2003. Once again the company ranked as Best Distributor in India' in the volumes business category by Microsoft for the year 2003-2004. The Company had acquired Redington Gulf FZE (Middle East and Africa operations) in April of the year 2004 from Redington Mauritius Limited and also acquired some value in Redington Distribution Pte Ltd (Singapore, Bangladesh & Srilanka Operations) as well as Cadensworth (India) Pvt Ltd in April of the year 2005. Also in the year 2005, Redington had entered into consumer durable distribution area. During the year 2006, the company had acquired 100% shareholding of Redington Distribution Pte Limited and Cadensworth (India) Private Limited.
A distribution agreement was made between the company and Apple Computer International Pvt Ltd., Bangalore (Apple Computer) in the year 2007 for distribution of Apple's range of products in India. The Company forged partnership with Adobe in February 2008 to successfully position Adobe's product offerings to increase its reach and tap more verticals in the Indian market. Authenex made tie-up with Redington in July of the same year 2008. Power management firm Eaton Corporation signed a nationwide distribution pact with Redington India in August 2008 to deliver its single phase uninterruptible power supply (UPS) systems.
During the course of FY 19-20, Company took decisive steps in its pivot towards transitioning itself into a Solution Oriented Distributor and has augmented its skills and capabilities in critical, future-oriented and emerging technologies in the areas of Cloud, Cybersecurity, Internet of Things (IoT), Artificial Intelligence (AI) & Machine Learning (ML).
During the year 2021, the Company sold its entire shareholding in M/s. Ensure Support Services (India) Limited a wholly owned subsidiary of the Company, to M/s. Accel Limited. Ensure was in the business of providing after sales support services including warranty and out-of-warranty services independently and on behalf of Original Equipment Manufacturers (OEM), and other allied services. Since this business vertical was not strategic to the Company, the entire shareholding in Ensure was divested on July 31, 2020
During the year 2022-23, the Company issued Bonus Shares of One Equity Share of Rs 2/- only each Fully Paid Up for every One Equity Share of Rs. 2/- each for every shareholder effective on August 20, 2021.
In year 2022-23, the Company launched Redington Online, an end-to-end digital platform aimed at making it easy for customers and partners to source technology products, solutions and services. It launched CloudQuarks, a cloud commerce platform that provides advisory, simplifies purchase process, regulates consumption and delivery of products and services.
Redington share price reflects investor sentiment toward the company and is impacted by various factors such as financial performance, market trends, and economic conditions. Share price is an indicator which shows the current value of the company's shares at which buyers or sellers can transact.
Market capitalization of Redington indicates the total value of its outstanding shares. Marketcap is calculated by multiplying share price and outstanding shares of the company. It is a helpful metric for assessing the company's size and market Valuation. It also helps investors understand how Redington is valued compared to its competitors.
Redington PE ratio helps investors understand what is the market value of each stock compared to Redington 's earnings. A PE ratio higher than the average industry PE could indicate an overvaluation of the stock, whereas a lower PE compared to the average industry PE could indicate an undervaluation.
The PEG ratio of Redington evaluates its PE ratio in relation to its growth rate. A PEG ratio of 1 indicates a fair value, a PEG ratio of less than 1 indicates undervaluation, and a PEG ratio of more than 1 indicates overvaluation.
Return on Equity (ROE) measures how effectively Redington generates profit from shareholders' equity. A higher ROE of more than 20% indicates better financial performance in terms of profitability.
Return on Capital Employed (ROCE) evaluates the profitability of Redington in relation to its capital employed. In simple terms, ROCE provides insight to investors as to how well the company is utilizing the capital deployed. A high ROCE of more than 20% shows that the business is making profitable use of its capital.
Total debt of Redington shows how much the company owes to either banks or individual creditors. In simple terms, this is the amount the company has to repay. Total debt can be a very useful metric to show the financial health of the company. Total debt more than equity is considered to be a bad sign.
The Debt-to-Equity (DE) ratio of Redington compares its total debt to shareholders' equity. A higher Debt to Equity ratio could indicate higher financial risk, while a lower ratio suggests that the company is managing its debt efficiently.
CAGR shows the consistent growth rate of Redington over a specific period, whether it is over a month, a year, or 10 years. It is a key metric to evaluate the company’s long-term growth potential. Main metrics for which CAGR is calculated are net sales, net profit, operating profit, and stock returns.
Technical analysis of Redington helps investors get an insight into when they can enter or exit the stock. Key components of Redington Technical Analysis include:
There are usually multiple support levels, but the main support levels for a stock are S1, S2, S3. Support levels indicate price points where stock might get support from buyers, helping the stock stop falling and rise.
There are usually multiple resistance levels, but the main resistance levels for a stock are R1, R2, R3. Resistance levels represent price points where Redington shares often struggle to rise above due to selling pressure.
Dividends refer to the portion of the company’s profits distributed to its shareholders. Dividends are typically paid out in cash and reflect Redington ’s financial health and profitability.
Bonus shares are usually given by companies to make the stock more affordable, increase liquidity, boost investor confidence, and more.
Stock split increases the number of its outstanding shares by dividing each existing share into multiple shares. When the company offers a stock split, the face value of the stock reduces in the same proportion as the split ratio.
The financials of Redington provide a complete view to investors about its net sales, net profit, operating profits, expenses, and overall financial health. Investors can analyze financial data to assess the company’s stability and also understand how the company has been growing financially.
The profit and loss statement of Redington highlights its net sales, net profit, total expenditure, and operating profits in the current financial year. This Profit and Loss statement is crucial for evaluating the profitability and financial stability of Redington .
The balance sheet presents a snapshot of Redington ’s assets, liabilities, and equity of shareholders, providing insights into the financials of the company.
Cashflow statements track the company's cash inflows and outflows over a period. It is an essential tool for understanding how well the company manages its liquidity and finances.
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