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Last Updated on: 25 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Redington Ltd

Basic Stock Data

Last Updated: June 25, 2024, 10:23 pm

Market Cap 16,972 Cr.
Current Price 217
High / Low238/136
Stock P/E13.9
Book Value 96.6
Dividend Yield2.86 %
ROCE18.3 %
ROE16.8 %
Face Value 2.00
PEG Ratio0.74

Competitors of Redington Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Deccan Gold Mines Ltd 1,597 Cr. 108159/48.8 14.40.00 %10.7 %35.2 % 1.00
Asi Industries Ltd 230 Cr. 25.640.8/13.09.17 35.80.78 %10.8 %7.98 % 1.00
Coal India Ltd 2,89,125 Cr. 469527/2247.74 1345.17 %65.1 %53.4 % 10.0
Anmol India Ltd 203 Cr. 35.968.0/30.09.70 17.60.00 %14.5 %23.3 % 10.0
Orissa Minerals Development Company Ltd 4,573 Cr. 7,6228,526/3,334 43.00.00 %1.48 %% 1.00
Industry Average55,872.34 Cr976.1915.5970.481.61%19.77%18.79%5.00

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales15,50413,45415,28716,60117,30216,80319,05121,67421,84921,18722,22023,50522,433
Expenses15,07913,11014,85616,07516,81116,34118,51821,09321,30520,76821,73922,98821,974
Operating Profit425344432525491462532581543419481517459
OPM %3%3%3%3%3%3%3%3%2%2%2%2%2%
Other Income26202619232530404664764579
Interest3028312433375488928810685106
Depreciation36353634373637394342444352
Profit before tax385301391487444414471494455352408434381
Tax %21%21%17%18%20%21%17%21%28%27%24%20%15%
Net Profit303239323397356326392393328255312348324
EPS in Rs3.893.033.934.974.454.044.954.863.973.183.884.364.16

Last Updated: June 9, 2024, 7:04 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: June 25, 2024, 8:48 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales24,16527,94531,55935,44241,11541,60346,53651,46556,94662,64479,37789,346
Expenses23,51127,26130,84334,63740,26440,75745,57050,37355,55460,80577,17487,468
Operating Profit6536847178068518469661,0921,3921,8392,2031,877
OPM %3%2%2%2%2%2%2%2%2%3%3%2%
Other Income465164344139-8448988142264
Interest199212182202183197271289205163355385
Depreciation38384347555763155148141155181
Profit before tax4624855555906556316236921,1281,6221,8331,575
Tax %25%26%26%25%27%23%22%23%30%19%21%21%
Net Profit3473584104444774844845347881,3151,4391,239
EPS in Rs4.054.214.845.305.806.026.536.629.7416.3817.8215.59
Dividend Payout %5%11%20%20%37%20%18%32%60%40%40%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)3.17%14.53%8.29%7.43%1.47%0.00%10.33%47.57%66.88%9.43%-13.90%
Change in YoY Net Profit Growth (%)0.00%11.36%-6.23%-0.86%-5.96%-1.47%10.33%37.23%19.31%-57.45%-23.33%

Growth

Compounded Sales Growth
10 Years:12%
5 Years:14%
3 Years:16%
TTM:13%
Compounded Profit Growth
10 Years:14%
5 Years:18%
3 Years:17%
TTM:-12%
Stock Price CAGR
10 Years:16%
5 Years:32%
3 Years:18%
1 Year:15%
Return on Equity
10 Years:17%
5 Years:19%
3 Years:21%
Last Year:17%

Last Updated: June 25, 2024, 4:53 pm

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

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

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow651.00683.00716.00804.00850.00845.00965.00-1.00-621.00-830.00-1.00-1.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

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%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
FIIs41.22%39.01%40.05%39.40%38.74%37.94%60.78%60.50%59.22%56.26%56.99%58.09%
DIIs15.93%15.47%16.24%16.14%16.51%16.50%16.66%16.68%17.40%17.38%17.92%18.57%
Government0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.01%0.03%0.03%0.03%0.03%
Public42.85%45.52%43.71%44.46%44.75%45.56%22.56%22.82%23.36%26.34%25.05%23.29%
No. of Shareholders62,3131,71,4912,04,0172,42,6152,55,9312,66,3662,54,1172,52,3362,41,8852,59,1722,38,8062,27,423

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
HDFC Mid-Cap Opportunities Fund - Regular Plan35,461,6061.09569.8713,916,3312024-06-24154.82%
HDFC Hybrid Equity Fund - Regular Plan16,214,0861.23260.5613,916,3312024-06-2416.51%
HDFC Small Cap Fund - Regular Plan13,916,3310.88223.6413,916,3312024-06-240%
Tata Small Cap Fund9,000,0002.28144.6313,916,3312024-06-24-35.33%
Tata Large & Mid Cap Fund - Regular Plan4,500,0001.2772.3213,916,3312024-06-24-67.66%
Tata Large & Mid Cap Fund - Regular Plan4,500,0001.2772.3213,916,3312024-06-24-67.66%
HDFC Large and Mid Cap Fund - Regular Plan3,903,0260.4762.7213,916,3312024-06-24-71.95%
Tata Digital India Fund3,263,3430.6152.4413,916,3312024-06-24-76.55%
Tata Hybrid Equity Fund - Regular Plan3,200,0001.4951.4213,916,3312024-06-24-77.01%
HDFC Retirement Savings Fund - Equity - Regular Plan1,000,0000.416.0713,916,3312024-06-24-92.81%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)15.5917.8216.4019.4413.24
Diluted EPS (Rs.)15.5917.8116.3919.4013.24
Cash EPS (Rs.)18.1620.4118.6324.0217.72
Book Value[Excl.RevalReserv]/Share (Rs.)100.5793.3278.16136.35120.54
Book Value[Incl.RevalReserv]/Share (Rs.)100.5793.3278.16136.35120.54
Revenue From Operations / Share (Rs.)1142.891015.63801.641463.151322.67
PBDIT / Share (Rs.)27.3928.9324.0536.9827.54
PBIT / Share (Rs.)25.0726.9422.2433.1723.54
PBT / Share (Rs.)20.1423.4620.7628.9917.79
Net Profit / Share (Rs.)15.8418.4216.8320.2113.72
NP After MI And SOA / Share (Rs.)15.5917.8216.3819.4313.24
PBDIT Margin (%)2.392.842.992.522.08
PBIT Margin (%)2.192.652.772.261.77
PBT Margin (%)1.762.302.581.981.34
Net Profit Margin (%)1.381.812.091.381.03
NP After MI And SOA Margin (%)1.361.752.041.321.00
Return on Networth / Equity (%)16.1420.1022.1215.3311.95
Return on Capital Employeed (%)23.9427.5226.6823.1718.37
Return On Assets (%)4.995.986.955.193.51
Long Term Debt / Equity (X)0.010.010.010.000.00
Total Debt / Equity (X)0.370.450.100.080.58
Asset Turnover Ratio (%)3.752.512.412.282.05
Current Ratio (X)1.431.421.461.531.41
Quick Ratio (X)1.020.961.091.201.03
Dividend Payout Ratio (NP) (%)0.0037.0335.390.0068.50
Dividend Payout Ratio (CP) (%)0.0033.3131.870.0052.63
Earning Retention Ratio (%)0.0062.9764.610.0031.50
Cash Earning Retention Ratio (%)0.0066.6968.130.0047.37
Interest Coverage Ratio (X)5.568.3216.269.204.89
Interest Coverage Ratio (Post Tax) (X)4.216.2912.386.073.46
Enterprise Value (Cr.)17775.5614567.088623.364740.943189.50
EV / Net Operating Revenue (X)0.190.180.130.080.06
EV / EBITDA (X)8.306.444.593.292.98
MarketCap / Net Operating Revenue (X)0.180.160.180.130.05
Retention Ratios (%)0.0062.9664.600.0031.49
Price / BV (X)2.161.881.961.500.61
Price / Net Operating Revenue (X)0.180.160.180.130.05
EarningsYield0.070.100.110.100.19

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 232.03

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 6.93% compared to the current price 217

Intrinsic Value: 275.39

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 26.91% compared to the current price ₹217

Last 5 Year EPS CAGR: 18.69%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 18.83%, which is a positive sign.
  2. The company has higher reserves (3,991.33 cr) compared to borrowings (1,911.67 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (48.50 cr) and profit (391.42 cr) over the years.
  1. The stock has a high average Working Capital Days of 34.08, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 35.42, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Redington Ltd:
    1. Net Profit Margin: 1.38%
      • 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: 23.94% (Industry Average ROCE: %)
      • 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. ROE%: 16.14% (Industry Average ROE: %)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 4.21
      • 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.
    5. Quick Ratio: 1.02
      • 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.
    6. ✗ Stock P/E: 13.9 (Industry average Stock P/E: )
      • 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.
    7. Total Debt / Equity: 0.37
      • 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 is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company

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

FAQ

What is the latest fair value of Redington Ltd?

The latest fair value of Redington Ltd is ₹232.03.

What is the Market Cap of Redington Ltd?

The Market Cap of Redington Ltd is 16,972 Cr..

What is the current Stock Price of Redington Ltd as on 25 June 2024?

The current stock price of Redington Ltd as on 25 June 2024 is ₹217.

What is the High / Low of Redington Ltd stocks in FY 2024?

In FY 2024, the High / Low of Redington Ltd stocks is 238/136.

What is the Stock P/E of Redington Ltd?

The Stock P/E of Redington Ltd is 13.9.

What is the Book Value of Redington Ltd?

The Book Value of Redington Ltd is 96.6.

What is the Dividend Yield of Redington Ltd?

The Dividend Yield of Redington Ltd is 2.86 %.

What is the ROCE of Redington Ltd?

The ROCE of Redington Ltd is 18.3 %.

What is the ROE of Redington Ltd?

The ROE of Redington Ltd is 16.8 %.

What is the Face Value of Redington Ltd?

The Face Value of Redington Ltd is 2.00.

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