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Last Updated on: 27 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Redington Ltd

About the Company - Redington Ltd

Redington Ltd. is a Public Limited Listed company incorporated on 02/05/1961 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L52599TN1961PLC028758 and registration number is 028758. Currently Company is involved in the business activities of Wholesale of machinery, equipment and supplies. Company’s Total Operating Revenue is Rs. 27018.94 Cr. and Equity Capital is Rs. 156.29 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Mining/MineralsBlock3, Plathin, Redington Tower, Inner Ring Road, Chennai (Madras) Tamil Nadu 600091investors@redingtongroup.com
http://www.redingtongroup.com
Management
NamePosition Held
Prof. J RamachandranChairman
Mr. Rajiv SrivastavaManaging Director
Mr. S V KrishnanWholeTime Director & Group CFO
Ms. Anita P BelaniDirector
Mr. Tu Shu-ChyuanDirector
Mr. B RamaratnamDirector
Ms. Chen Yi-JuDirector
Mr. V S HariharanDirector
Mr. Keith WF BradleyDirector

Redington Ltd. Share Price Update

Share PriceValue
Today₹190.15
Previous Day₹191.90

Basic Stock Data of Redington Ltd

Market Cap 16,495 Cr.
Current Price 211
High / Low220/136
Stock P/E13.8
Book Value 88.2
Dividend Yield3.40 %
ROCE24.9 %
ROE21.9 %
Face Value 2.00

Data Source: screener.in

Competitors of Redington Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
NMDC Ltd 65,631 Cr. 224253/10411.4 83.62.91 %30.2 %23.0 % 1.00
Rajdarshan Industries Ltd 15.1 Cr. 48.564.4/26.421.9 71.00.00 %1.52 %1.42 % 10.0
Orissa Minerals Development Company Ltd 4,013 Cr. 6,6888,344/2,295 43.00.00 %1.48 %% 1.00
20 Microns Ltd 547 Cr. 155201/62.810.4 91.10.48 %19.3 %15.3 % 5.00
Vedanta Ltd 97,763 Cr. 263301/20819.6 85.038.6 %21.2 %20.4 % 1.00
Industry Average33,593.82 Cr1,475.7012.6674.748.40%14.74%12.02%3.60

Redington Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales13,76416,98115,50413,45415,28716,60117,30216,80319,05121,67421,84921,18722,220
Expenses13,47516,55715,07913,11014,85616,07516,81116,34118,51821,09321,30520,76821,739
Operating Profit289424425344432525491462532581543419481
OPM %2%2%3%3%3%3%3%3%3%3%2%2%2%
Other Income22162620261923253040466476
Interest353130283124333754889288106
Depreciation35373635363437363739434244
Profit before tax241372385301391487444414471494455352408
Tax %24%45%21%21%17%18%20%21%17%21%28%27%24%
Net Profit184204303239323397356326392393328255312
EPS in Rs2.292.463.893.033.934.974.454.044.954.863.973.183.88

Redington Ltd Quarterly Chart

Redington Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales21,16224,16527,94531,55935,44241,11541,60346,53651,46556,94662,64479,37788,761
Expenses20,54023,51127,26130,84334,63740,26440,75745,57050,37355,55460,80577,17486,800
Operating Profit6216536847178068518469661,0921,3921,8392,2031,961
OPM %3%3%2%2%2%2%2%2%2%2%3%3%2%
Other Income29465164344139-8448988142231
Interest169199212182202183197271289205163355371
Depreciation3138384347555763155148141155172
Profit before tax4504624855555906556316236921,1281,6221,8331,649
Tax %25%25%26%26%25%27%23%22%23%30%19%21%
Net Profit3393473584104444774844845347881,3151,4391,243
EPS in Rs3.674.054.214.845.305.806.026.536.629.7416.3817.8215.39
Dividend Payout %5%5%11%20%20%37%20%18%32%60%40%40%

Redington Ltd Profit & Loss Yearly Chart

Redington Ltd Growth

Compounded Sales Growth
10 Years:13%
5 Years:14%
3 Years:16%
TTM:19%
Compounded Profit Growth
10 Years:16%
5 Years:24%
3 Years:39%
TTM:-16%
Stock Price CAGR
10 Years:20%
5 Years:37%
3 Years:31%
1 Year:22%
Return on Equity
10 Years:18%
5 Years:19%
3 Years:21%
Last Year:22%

Redington Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital80808080808080787878156156156
Reserves1,2431,5611,9412,2942,8693,0683,4513,8284,2314,8615,6296,7716,741
Borrowings2,0602,1501,7861,8672,3491,5161,4581,3072,7756228313,3213,318
Other Liabilities2,1282,7333,5004,1355,2265,4865,8757,2067,5688,99911,79213,03014,592
Total Liabilities5,5116,5247,3088,37510,52510,15010,86312,41914,65114,55918,40723,27824,807
Fixed Assets235350259276498476470454714605700877868
CWIP9152313140203811185121
Investments00000547000343
Other Assets5,2676,1587,0268,08610,0139,66910,36911,92013,92513,95317,62222,35423,936
Total Assets5,5116,5247,3088,37510,52510,15010,86312,41914,65114,55918,40723,27824,807

Redington Ltd Reserves and Borrowings Chart

Redington Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 258288241257-1421,3601861,0689663,497989-3,234
Cash from Investing Activity -745762961012-86-25-9454-610-167243
Cash from Financing Activity 282-160-523-225202-1,131-199-651443-2,241-4761,529
Net Cash Flow-205203144271144-383241,463646346-1,462

Redington Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days384651515545534950445155
Inventory Days313132354132293228202735
Days Payable293338404642444947506354
Cash Conversion Cycle404445465035383230141536
Working Capital Days474440404633373230111435
ROCE %19%18%18%17%16%16%16%18%15%20%28%25%

Redington Ltd Financial Efficiency Indicators Chart

Redington Ltd Share Holding Pattern

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
FIIs41.24%42.00%41.22%39.01%40.05%39.40%38.74%37.94%60.78%60.50%59.22%56.26%
DIIs16.19%15.79%15.93%15.47%16.24%16.14%16.51%16.50%16.66%16.68%17.40%17.38%
Government0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.01%0.03%0.03%
Public42.57%42.21%42.85%45.52%43.71%44.46%44.75%45.56%22.56%22.82%23.36%26.34%
No. of Shareholders35,06838,11962,3131,71,4912,04,0172,42,6152,55,9312,66,3662,54,1172,52,3362,41,8852,59,172

Redington Ltd Shareholding Pattern Chart

No. of Redington Ltd Shareholders

Redington Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
HDFC Mid-Cap Opportunities Fund - Regular Plan354616061.09569.87
HDFC Hybrid Equity Fund - Regular Plan162140861.23260.56
HDFC Small Cap Fund - Regular Plan139163310.88223.64
Tata Small Cap Fund90000002.28144.63
Tata Large & Mid Cap Fund - Regular Plan45000001.2772.32
Tata Large & Mid Cap Fund - Regular Plan45000001.2772.32
HDFC Large and Mid Cap Fund - Regular Plan39030260.4762.72
Tata Digital India Fund32633430.6152.44
Tata Hybrid Equity Fund - Regular Plan32000001.4951.42
HDFC Retirement Savings Fund - Equity - Regular Plan10000000.416.07

Redington Ltd ROCE Trend

Redington Ltd EPS Trend

Redington Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)17.8216.4019.4413.2412.80
Diluted EPS (Rs.)17.8116.3919.4013.2412.80
Cash EPS (Rs.)20.4118.6324.0217.7214.08
Book Value[Excl.RevalReserv]/Share (Rs.)93.3278.16136.35120.54109.24
Book Value[Incl.RevalReserv]/Share (Rs.)93.3278.16136.35120.54109.24
Revenue From Operations / Share (Rs.)1015.63801.641463.151322.671195.99
PBDIT / Share (Rs.)28.9324.0536.9827.5424.72
PBIT / Share (Rs.)26.9422.2433.1723.5423.09
PBT / Share (Rs.)23.4620.7628.9917.7916.02
Net Profit / Share (Rs.)18.4216.8320.2113.7212.45
NP After MI And SOA / Share (Rs.)17.8216.3819.4313.2413.05
PBDIT Margin (%)2.842.992.522.082.06
PBIT Margin (%)2.652.772.261.771.93
PBT Margin (%)2.302.581.981.341.33
Net Profit Margin (%)1.812.091.381.031.04
NP After MI And SOA Margin (%)1.752.041.321.001.09
Return on Networth / Equity (%)20.1022.1215.3311.9513.00
Return on Capital Employeed (%)27.5226.6823.1718.3720.51
Return On Assets (%)5.986.955.193.514.08
Long Term Debt / Equity (X)0.010.010.000.000.01
Total Debt / Equity (X)0.450.100.080.580.33
Asset Turnover Ratio (%)2.512.412.282.052.10
Current Ratio (X)1.421.461.531.411.45
Quick Ratio (X)0.961.091.201.030.97
Dividend Payout Ratio (NP) (%)37.0335.390.0068.5018.91
Dividend Payout Ratio (CP) (%)33.3131.870.0052.6316.81
Earning Retention Ratio (%)62.9764.610.0031.5081.09
Cash Earning Retention Ratio (%)66.6968.130.0047.3783.19
Interest Coverage Ratio (X)8.3216.269.204.894.71
Interest Coverage Ratio (Post Tax) (X)6.2912.386.073.463.72
Enterprise Value (Cr.)14567.088623.364740.943189.504757.32
EV / Net Operating Revenue (X)0.180.130.080.060.10
EV / EBITDA (X)6.444.593.292.984.95
MarketCap / Net Operating Revenue (X)0.160.180.130.050.08
Retention Ratios (%)62.9664.600.0031.4981.08
Price / BV (X)1.881.961.500.611.02
Price / Net Operating Revenue (X)0.160.180.130.050.08
EarningsYield0.100.110.100.190.12

Redington Ltd Profitability Ratios (%)

Redington Ltd Liquidity Ratios

Redington Ltd Liquidity Ratios (%)

Redington Ltd Interest Coverage Ratios (X)

Redington Ltd Valuation Ratios

Fair Value / Intrinsic Value of Redington Ltd

Fair Value: ₹275.62

The stock is undervalued by 30.63% compared to the current price ₹211

*Investments are subject to market risks

Strength and Weakness of Redington Ltd

StrengthWeakness
  1. The stock has a high average ROCE of 18.83%, which is a positive sign.
  2. The company has higher reserves (3,729.85 cr) compared to borrowings (1,950.77 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (46.31 cr) and profit (395.92 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 25.80 and average Dividend Yield of 2.28%.
  2. The stock has a high average Working Capital Days of 34.08, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 35.42, which may not be favorable.

Should I Buy Redington Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Redington Ltd:
    1. Net Profit Margin: 1.81%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 27.52% (Industry Average ROCE: 13.44%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. Interest Coverage Ratio (Post Tax): 6.29
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    4. Quick Ratio: 0.96
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    5. ✗ Stock P/E: 13.6 (Industry average Stock P/E: 12.82)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    6. ✓ Total Debt / Equity: 0.45
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Redington Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE