📊 Company: Redington Ltd
🏢 Business: IT product distribution, mobility, enterprise solutions
🌍 Global Reach: India (SISA) + Rest of World (ROW)
📅 FY25 Net Profit: ₹18,206 Cr
📈 Revenue: ₹99,334 Cr
💰 EPS: ₹20.53
💸 CMP (as of May 19, 2025): ₹180
⚙️ PE (TTM): 8.76
🔮 Fair Value Estimate: ₹246
🎯 EduInvesting Take: “This stock looks like a courier company, performs like a private equity fund.”
🧾 Quick Snapshot
| Metric | FY25 (₹ Cr) | FY24 (₹ Cr) | Change (%) |
|---|---|---|---|
| Revenue from Operations | 99,334 | 79,521 | +24.9% |
| Other Income | 228 | 145 | +57% |
| Total Income | 99,562 | 79,666 | +25% |
| Total Expenses | 97,852 | 78,470 | +24.7% |
| Profit Before Tax | 2,334 | 1,195 | +95.3% |
| Net Profit (after tax) | 1,820 | 923 | +97.1% |
| EPS (Diluted) | ₹20.53 | ₹10.4 | +97.4% |
Source: FY25 consolidated audited results
PE at CMP ₹180 = 8.76 → dirt cheap for a near-₹2,000 Cr profit.
🏢 What Does Redington Even Do?
Think of them as:
- The middleman between Apple, HP, Dell, Lenovo and your neighbourhood laptop dealer.
- The distributor for tech products, software licenses, cloud services, and datacenter infrastructure.
- The boring hero of the Indian IT ecosystem.
They don’t innovate. They don’t do R&D. They just move boxes. But they do it better than anyone else.
Global ops:
- India + Singapore + Africa + Turkey
- ₹50K Cr+ revenue from ROW alone!
🤵 Management & Governance
| Name | Designation |
|---|---|
| Rajiv Srivastava | MD & CEO |
| Ramesh Natarajan | Group CFO |
| Deloitte Haskins | Auditor (valid till 2028) |
💼 Audit Opinion: Unmodified (Clean Chit)
📈 Segmental Performance
| Segment | Revenue (₹ Cr) | PBT (₹ Cr) | Margin % |
|---|---|---|---|
| India (SISA) | ₹50,054 | ₹1,224 | 2.45% |
| ROW | ₹49,328 | ₹814 | 1.65% |
📦 SISA outperformed ROW for the first time in 3 years, driven by enterprise tech + AI hardware demand.
🔮 Fair Value Estimate
- EPS (FY25): ₹20.53
- Fair P/E (industry avg): 12x (for distribution heavy FMCG-like businesses)
- 🎯 Fair Value = ₹20.53 × 12 = ₹246
📌 CMP: ₹180 → Upside Potential = ~37%
🧠 EduInvesting Take
Redington is like the TCS of tech logistics – boring, predictable, insanely profitable.
Here’s why we love it:
- 💥 Profit doubled in 12 months
- 💰 ₹2,000 Cr cash pile
- 📉 PE of 8.76? Come on, that’s lower than Pidilite’s glue margin
- 📦 AI, Cloud, Apple India growth = tailwinds
- 🧱 No capex risk — it’s asset-light like a startup, but profitable like a bank
🪜 Growth Triggers
- Apple Expansion: India is now a key hub. More iPhones sold = more Redington margins.
- AI + Data Centers: Selling high-end enterprise gear to every SaaS unicorn in India.
- B2B SaaS + Cloud Licensing: AWS, Microsoft, Adobe – all routed via Redington channels.
- Africa + Middle East: Huge underpenetrated markets.
🧯 Risks
- 💻 Tech demand is cyclical — recession = drop in enterprise spend
- 🧾 Margin erosion risk as competition in distribution increases
- ⚡ Currency risk in Africa, Middle East ops
- 💰 Dividend policy unclear — not a consistent payout company
🏁 Final Verdict
Redington’s stock chart may look like an ECG machine, but the business is printing money like RBI in 2016.
✅ At ₹180, this stock is undervalued
✅ Solid FY25 profit
✅ Reasonable P/E
✅ No major capex or debt
“If this stock doesn’t double in 2 years, we’ll eat an HDMI cable.”
Tags: redington share price, redington fy25 results, it distributor stocks india, cloud tech stocks, undervalued midcaps 2025, redington pe ratio, tech enablers indi
