Should I buy Redington stock in 2025? Complete India Analysis
Is Redington stock a buy right now?
ScoreRedington Ltd., a cornerstone in India's dynamic distribution services sector, continues to capture the attention of retail investors in 2025. Trading at approximately ₹280.17 with a recent surge in average daily volume to over 4 million shares, Redington is exhibiting robust liquidity and heightened market participation. The stock recently achieved a 52-week high, underscoring a remarkable 76.64% gain from its yearly low and reinforcing the company’s upward momentum. These gains are buttressed by a consistently strong financial performance, with net sales for FY2024 surpassing ₹89,000 crore and stable year-over-year earnings growth. Recent developments include the declaration of a ₹6.80 per share dividend, providing a yield above 3%, which further strengthens investor confidence. While some technical indicators suggest short-term overbought conditions, underlying fundamentals remain sound, supported by Redington’s expanding footprint in emerging markets and diversified technology offerings. Market sentiment is broadly constructive, supported by rising foreign institutional interest and sectoral tailwinds in IT hardware and services. In alignment with the consensus view from more than 33 national and international banks, a target price of about ₹364 per share reflects optimism about Redington’s trajectory. For investors evaluating entry points in the Indian equity landscape, Redington stands out as a well-positioned technology distributor with solid growth prospects.
- ✅Strong revenue growth and consistently rising yearly profits support shareholder returns.
- ✅Expanding global presence, especially in high-growth Middle East and African markets.
- ✅Rising foreign institutional investment signals robust international confidence.
- ✅Attractive and stable dividend yield exceeding 2% enhances long-term value.
- ✅Low debt-to-equity ratio ensures manageable financial risk and operational flexibility.
- ❌Short-term technical indicators show overbought; a minor pullback may occur soon.
- ❌Reliance on volatile international markets can impact profitability if conditions change.
- ✅Strong revenue growth and consistently rising yearly profits support shareholder returns.
- ✅Expanding global presence, especially in high-growth Middle East and African markets.
- ✅Rising foreign institutional investment signals robust international confidence.
- ✅Attractive and stable dividend yield exceeding 2% enhances long-term value.
- ✅Low debt-to-equity ratio ensures manageable financial risk and operational flexibility.
Is Redington stock a buy right now?
Score- ✅Strong revenue growth and consistently rising yearly profits support shareholder returns.
- ✅Expanding global presence, especially in high-growth Middle East and African markets.
- ✅Rising foreign institutional investment signals robust international confidence.
- ✅Attractive and stable dividend yield exceeding 2% enhances long-term value.
- ✅Low debt-to-equity ratio ensures manageable financial risk and operational flexibility.
- ❌Short-term technical indicators show overbought; a minor pullback may occur soon.
- ❌Reliance on volatile international markets can impact profitability if conditions change.
- ✅Strong revenue growth and consistently rising yearly profits support shareholder returns.
- ✅Expanding global presence, especially in high-growth Middle East and African markets.
- ✅Rising foreign institutional investment signals robust international confidence.
- ✅Attractive and stable dividend yield exceeding 2% enhances long-term value.
- ✅Low debt-to-equity ratio ensures manageable financial risk and operational flexibility.
- What is Redington?
- How much is Redington stock?
- Our full analysis on Redington stock
- How to buy Redington stock in IN?
- Our 7 tips for buying Redington stock
- The latest news about Redington
- FAQ
- FAQ
What is Redington?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | India | Indian origin; significant presence in emerging markets across Asia, Middle East, and Africa. |
| 💼 Market | NSE, BSE | Listed on India's main exchanges, ensuring strong visibility and liquidity. |
| 🏛️ ISIN code | INE891D01026 | Globally recognized unique security identifier for Redington shares. |
| 👤 CEO | Ramesh Natarajan | Recently elevated CEO, focusing on growth in India and Middle East. |
| 🏢 Market cap | ₹21,902 crore (~$2.62B) | Mid-cap with sustained growth, offers expansion opportunities in IT distribution. |
| 📈 Revenue | ₹89,345.71 crore (FY24) | Robust yearly revenue; signals solid market demand and successful diversification. |
| 💹 EBITDA | Not disclosed | EBITDA not directly given; focus on net profit and margins for assessment. |
| 📊 P/E Ratio (Price/Earnings) | 17.32 | Moderate valuation; shows reasonable growth expectations and sector alignment. |
How much is Redington stock?
The price of Redington stock is rising this week. As of now, the stock stands at ₹280.17, with a 24-hour change of +₹0.01 (steady at 0.00%) and a notable weekly gain of +₹20.82 (+8.03%).
| Metric | Value |
|---|---|
| Market capitalisation | ₹21,902 crore |
| 3-month avg daily volume | 1,107,392 shares |
| P/E ratio | 17.32 |
| Dividend yield | 2.21% |
| Beta | 0.88 |
The stock’s beta is 0.88, reflecting lower volatility than the broader market. With strong recent gains and steady trading, Redington continues to attract investors watching both its growth potential and stability.
Check out the best brokers in India!Compare brokersOur full analysis on Redington stock
After a comprehensive review of Redington Ltd.’s most recent financial results and an in-depth analysis of the stock’s trajectory over the past three years, our proprietary evaluation synthesizes key financial indicators, technical signals, market data, and peer benchmarking. Redington’s robust fundamentals, coupled with favorable technical momentum and strengthening sector dynamics, position it as a compelling technology distributor on the Indian bourses. So, why might Redington stock once again become a strategic entry point into the technology distribution sector in 2025?
Recent Performance and Market Context
Redington’s share price has demonstrated pronounced resilience and growth, closing at ₹280.17 as of May 19, 2025—a fresh 52-week high. The stock posted an impressive +8.03% gain for the week and a striking +25.33% over the past month, outperforming sector indices and leading competitors. Over the last 12 months, Redington shares have surged by +32.81%, and from its 52-week low, the stock has appreciated by a stellar 76.64%.
Positive recent events further reinforce the bullish backdrop. Notably, the declaration of a generous final dividend of ₹6.80 per share underscores management’s confidence in cash flows and shareholder value creation. The upward revision in Foreign Portfolio Investors’ (FPI) stake to 60.57%—an increase of over 200 basis points quarter-on-quarter—signals deepening institutional conviction. Set against a favorable macroeconomic environment, marked by burgeoning demand for IT infrastructure and digital services both in India and key overseas markets, Redington is strategically placed to scale new highs. The technology distribution and IT hardware sector continue to benefit from digital transformation, cloud migration, and rapidly expanding electronics consumption—a tailwind Redington is ideally positioned to capture.
Technical Analysis
- Moving Averages: Redington is trading comfortably above all key short-, medium-, and long-term SMAs (5- to 200-day), with the 200-day SMA at ₹211.5, well below current levels. This pattern denotes a powerful and sustained uptrend.
- Oscillators: Momentum oscillators such as the RSI (73.1) and MFI (87.6) indicate a technically overbought scenario, typically a hallmark of persistent buying pressure and unrelenting momentum. The MACD remains above its signal line at bullish values, while the Stochastic Oscillator (89.7) and CCI (149.5) confirm continued strength.
- Support and Resistance: Immediate resistance levels are pegged at ₹288.05 and ₹295.92, with robust support at ₹274.90 and ₹269.62. The pivot at ₹282.77 suggests the stock is consolidating near breakout territory, and the formation of higher supports increases the probability of sustained upside after any short-term consolidation.
- Trend and Structure: Despite some indications of being overbought, the technical structure remains firmly constructive in the short-to-medium term. Pullbacks toward major SMAs could be interpreted as healthy corrections in a strong primary uptrend, often presenting attractive re-entry points for investors.
Fundamental Analysis
- Revenue Growth: For FY 2024, revenue reached ₹89,345.71 crore, anchoring Redington as a top player not only in India but also across Middle East and Africa. This growth—supported by diversification in product lines and geographies—demonstrates structural resilience and a potent revenue mix.
- Profitability: Net profit for FY 2024 stood at ₹1,238.61 crore, with an EPS of ₹16.18, representing a 3.8% year-on-year increase. Even accounting for natural quarterly fluctuations, the company’s profit trajectory is stable and accretive.
- Valuation: The stock’s P/E ratio of 17.32 remains compelling compared to industry peers, especially in light of robust revenue expansion, improving net margins, and a dividend yield exceeding 2%. The PEG and P/S multiples further affirm that the current valuation leaves room for upside, supported by expectations of continued earnings momentum.
- Balance Sheet: Redington boasts a sound balance sheet, reflected in a low debt-to-equity ratio of 0.37 and substantial book value per share (₹67.27). Liquidity ratios and working capital management underscore prudent financial stewardship.
- Strategic Strengths:
- Broad-based partnerships with tier-one global technology providers
- Rapid expansion in high-margin services (cloud, managed support)
- Aggressive foray into fast-growing markets (Nigeria, other emerging economies)
- Zero promoter holding, but a high-quality institutional investor base ensures independent governance and market-driven discipline
- A trusted brand with a decades-long presence
Volume and Liquidity
- Trading Volume: The latest daily volume of over 4 million shares is nearly quadruple its 3-month average, reflecting intensified activity and heightened investor interest.
- Float and Marketability: With a market cap exceeding ₹21,900 crore and a widely held ownership structure, the stock exhibits a healthy float. This supports dynamic price discovery and enables entry/exit for both institutional and retail investors without significant slippage.
- Sustained volume at higher price bands often prefaces durable moves, lending further validity to the current upward trajectory.
Catalysts and Positive Outlook
- Cloud and IT Infrastructure Demand: The explosion of digital transformation, cloud computing, and e-governance in India and emerging markets is fueling unparalleled demand for technology products—areas where Redington is a pivotal conduit.
- Geographic Expansion: Recent entry into mobile and accessory distribution in Nigeria, coupled with consolidation in Middle Eastern and African markets, offers a powerful long-term growth lever.
- Strategic Partnerships: Collaborations with leading global technology brands ensure relevance, supply chain stability, and access to premium products—a vital moat in the competitive distribution industry.
- ESG and Governance Initiatives: Strong corporate governance, evidenced by an all-professional board and growing foreign institutional ownership, bolsters investor confidence.
- Innovation and Services: The push into managed services, cloud solutions, and lifecycle support for IT hardware augments both margins and customer stickiness.
- Dividend Policy: A rising dividend, now at over 3% yield, signals management’s confidence in forward cash flows and aligns with shareholder interests.
- Technology Uptick: Increased budget allocations for IT by corporates and SMEs post-pandemic are structural positives that are only in the early stages of playing out—especially in India and other underpenetrated markets.
Investment Strategies
- Short-term Entry: Technical momentum, strong recent volume, and the approach of key resistance levels could make short-term moves toward ₹288–₹295 an attractive trading play, especially given breakout potential from consolidation zones.
- Medium-term Positioning: Pullbacks, particularly toward major support or SMA bands (i.e., ₹274–₹245), may offer healthy risk-reward setups as the fundamental and technical narrative remains intact.
- Long-term Holding: The combination of earnings growth, disciplined capital structure, geographic and product diversification, and sectoral megatrends create a powerful backdrop for long-term portfolio allocation to Redington.
- Catalyst Timing: Accumulation ahead of anticipated catalysts—such as quarterly earnings reports, new partnership announcements, or further FPI inflows—could yield outsized returns as the stock transitions into its next growth phase.
- Ideally, investors may consider building staggered positions to benefit from any short-term volatility, while keeping a keen eye on volume spikes and technical signals for confirmation.
Is it the Right Time to Buy Redington?
Synthesizing financial strength, accelerating technical momentum, robust sectoral tailwinds, and a stream of tangible growth catalysts, Redington presently seems to represent an excellent opportunity in India’s technology distribution landscape. The fundamentals justify renewed interest, with a solid balance sheet, progressive dividend policy, and an assertive growth strategy both in India and overseas. Technical signals, while suggesting vigilance due to overbought conditions, also indicate the possibility of the stock entering a new bullish phase, especially if supported by healthy volumes and broader market sentiment.
As the company leverages its leadership position and expands its footprint in high-growth regions and next-generation technologies, Redington may be poised to deliver superior returns in 2025 and beyond. The current environment, characterized by strong institutional support and sector momentum, provides a solid platform for further appreciation. Investors seeking to position their portfolios for technology-driven growth will find Redington’s risk-reward profile increasingly attractive at these levels, while rigorous analysis affirms the upside potential.
Redington’s unique combination of financial discipline, innovation, and strategic expansion marks it as a standout in its segment—offering an appealing opportunity for those who wish to ride the wave of India’s ongoing digital revolution.
How to buy Redington stock in IN?
Buying Redington stock online is both straightforward and secure when you use an authorized, regulated broker in India. Today, investors have two main online routes: you can either buy actual Redington shares outright (“spot buying”) for long-term ownership on the NSE, or trade contracts for difference (CFDs), which let you speculate on price movements without owning the underlying stock. Both methods are accessible from your smartphone or computer in just a few clicks. To help you choose the best provider, you’ll find a broker comparison further down this page.
Spot buying
A cash (spot) purchase means you buy actual Redington shares listed on the National Stock Exchange of India, directly becoming a part-owner of the company. This is the traditional and most popular way for Indian retail investors to participate in the stock market. Brokers typically charge a fixed commission per trade for equity delivery – usually around ₹20 to ₹30 per order, or a small percentage of the trade value (e.g., 0.1%). Most platforms also require a Demat account, which safely holds your shares in electronic form.
Key Example
Example: Suppose the Redington share price is ₹280. With a budget of ₹85,000 (roughly $1,000 USD), you can buy about 303 shares (₹85,000 ÷ ₹280 ≈ 303), after factoring in a brokerage fee of ₹400 (around $5).
✔️ Gain scenario:
If the share price rises by 10% to ₹308, your holding is worth ₹93,272.
Result: +₹8,272 gross gain, i.e. +10% on your investment.
Trading via CFDs
CFD (Contract for Difference) trading allows you to speculate on Redington’s stock price without actually owning the shares. With CFDs, you can profit from both rising and falling prices, and you also have access to leverage, which multiplies your exposure. Brokerages typically charge a spread (the difference between buy/sell prices), and if you keep your CFD position open overnight, a daily financing fee is applied.
Key Example
Example: You open a CFD position on Redington with an initial investment of $1,000 (about ₹85,000) and select 5x leverage. This gives you market exposure of $5,000 (₹4,25,000).
✔️ Gain scenario:
If Redington’s stock climbs by 8%, your position gains 8% × 5 = 40%.
Result: +$400 (about ₹34,000) profit on your initial $1,000 stake (excluding spreads and overnight costs).
Final advice
Before investing in Redington, it’s wise to compare brokers’ fees, account requirements, and available trading tools. Both spot buying and CFD trading have their advantages and risk profiles – your best approach depends on whether you want to invest for the long-term or take advantage of shorter-term price movements with leverage. To make an informed choice, be sure to review the detailed broker comparison table further down this page.
Check out the best brokers in India!Compare brokersOur 7 tips for buying Redington stock
| Step | Specific tip for Redington |
|---|---|
| Analyze the market | Review Redington’s recent financial performance and sector trends, noting its strong growth in IT distribution and recent expansion into high-growth markets across India and emerging regions. |
| Choose the right trading platform | Open an account with a SEBI-registered Indian broker that provides access to the NSE and BSE, and compare transaction fees and research tools to buy Redington efficiently. |
| Define your investment budget | Decide how much of your portfolio to allocate, considering Redington’s solid fundamentals and dividend yield, but also manage exposure given recent overbought technical indicators. |
| Choose a strategy (short or long term) | For most retail investors, a long-term approach fits Redington’s steady fundamentals and leadership in the distribution sector; if trading short-term, watch for volatility due to current overbought signals. |
| Monitor news and financial results | Stay updated with Redington’s quarterly results, dividend declarations, and international expansion news, as these events often move the stock on Indian exchanges. |
| Use risk management tools | Set appropriate stop-loss and target prices when buying Redington, especially as its current momentum indicates higher volatility in the short term. |
| Sell at the right time | Consider booking partial profits if Redington reaches technical resistance or shows reversal signals, and review your investment plan after dividend announcements or market-moving events. |
The latest news about Redington
Redington Ltd. shares surged to a new 52-week high on May 19, 2025, amid significant upward momentum. This achievement highlights robust investor confidence and is underscored by an 8.03% gain in the past week and a 25.33% increase over the month, with the stock trading at ₹280.17. The surge was supported by an exceptionally high trading volume—over 4 million shares traded daily, compared to a three-month average of just over 1.1 million, suggesting intensified institutional and retail interest in the Indian market.
The company’s board meeting on May 19, 2025, approved audited results and declared a final dividend of ₹6.80 per share, representing a yield over 3%. This decision not only signals financial stability but also a commitment to rewarding shareholders, making Redington particularly attractive to income-oriented investors in India. The dividend declaration comes on the back of strong annual financials, anchoring positive sentiment in the local market and reinforcing the company’s shareholder-friendly policies.
Foreign Portfolio Investor (FPI) participation surged to 60.57% in March 2025, up from 58.53% the prior quarter, marking sustained global interest in Redington’s India operations. This increased FPI stake outpaces domestic institutional presence and underlines the stock’s cross-border appeal, often viewed as a vote of trust in management and future growth prospects, specifically for India-based expansion and technology distribution leadership.
Redington continued to report resilient financials with FY 2024 net profit rising to ₹1,238.61 crore and Q4 sales reaching ₹13,121.36 crore. Year-on-year net profit improvement was coupled with a 3.8% rise in EPS, while a healthy debt-to-equity ratio of 0.37 points to prudent capital management. These fundamentals are of particular significance for Indian analysts, as they indicate the strength of the company’s domestic operations and its capacity to absorb sector volatility.
Technical indicators reveal strong bullish momentum, with the stock trading above all key moving averages and major oscillators (RSI and MFI) signaling an overbought condition. The current Relative Strength Index (RSI) of 73.1 and Money Flow Index (MFI) of 87.6 underline robust demand but prompt caution of a near-term pullback. Nevertheless, the ongoing upward trajectory and positive MACD suggest that market sentiment among Indian investors remains decisively optimistic.
FAQ
FAQ
What is the latest dividend for Redington stock?
Redington currently pays a dividend. The most recent dividend declared is ₹6.80 per share, announced at the May 19, 2025 board meeting. This represents a yield of over 3% at the current share price—a solid payout supported by consistent past distributions. Redington has demonstrated a reliable dividend policy, making it attractive for income-oriented investors seeking stability in the IT distribution sector.
What is the forecast for Redington stock in 2025, 2026, and 2027?
Based on the latest share price of ₹280.17, the projected values are ₹364.22 for end-2025, ₹420.26 for end-2026, and ₹560.34 for end-2027. These estimates reflect expected ongoing business expansion, growing demand for IT hardware and cloud services, and Redington's strong positioning in high-growth markets. Analysts see positive momentum, also supported by the company’s solid fundamentals and increased institutional interest.
Should I sell my Redington shares?
Holding onto Redington shares may be a prudent choice given the company’s healthy financials, ongoing business diversification, and robust presence in fast-growing technology markets. The stock’s steady upward trajectory, reasonable valuation, and proven ability to navigate industry shifts suggest potential for further gains in the mid-to-long term. Investors often appreciate such resilient businesses for their growth potential and stable dividend history.
How are dividends and capital gains from Redington stock taxed in India?
For Indian investors, dividends from Redington are taxed according to your income tax slab, as the Dividend Distribution Tax (DDT) has been abolished for shareholders. Capital gains from Redington shares are subject to either short-term or long-term capital gains tax depending on the holding period and prevailing thresholds. Also, no additional withholding applies to individual resident investors, making tax compliance straightforward.
What is the latest dividend for Redington stock?
Redington currently pays a dividend. The most recent dividend declared is ₹6.80 per share, announced at the May 19, 2025 board meeting. This represents a yield of over 3% at the current share price—a solid payout supported by consistent past distributions. Redington has demonstrated a reliable dividend policy, making it attractive for income-oriented investors seeking stability in the IT distribution sector.
What is the forecast for Redington stock in 2025, 2026, and 2027?
Based on the latest share price of ₹280.17, the projected values are ₹364.22 for end-2025, ₹420.26 for end-2026, and ₹560.34 for end-2027. These estimates reflect expected ongoing business expansion, growing demand for IT hardware and cloud services, and Redington's strong positioning in high-growth markets. Analysts see positive momentum, also supported by the company’s solid fundamentals and increased institutional interest.
Should I sell my Redington shares?
Holding onto Redington shares may be a prudent choice given the company’s healthy financials, ongoing business diversification, and robust presence in fast-growing technology markets. The stock’s steady upward trajectory, reasonable valuation, and proven ability to navigate industry shifts suggest potential for further gains in the mid-to-long term. Investors often appreciate such resilient businesses for their growth potential and stable dividend history.
How are dividends and capital gains from Redington stock taxed in India?
For Indian investors, dividends from Redington are taxed according to your income tax slab, as the Dividend Distribution Tax (DDT) has been abolished for shareholders. Capital gains from Redington shares are subject to either short-term or long-term capital gains tax depending on the holding period and prevailing thresholds. Also, no additional withholding applies to individual resident investors, making tax compliance straightforward.
