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Redington Limited (REDINGTON) Fair Value & Analysis

Technology · IN · Market cap ₹218B

RL Redington Limited REDINGTON · NSE
Price₹332.80
Fair Value₹264.20
Upside-20.6%
Quality47/100
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Expensive Growth
Thin margins · 1.3% net margin
Low debt · negative free cash flow
2.19% dividend yield
Ranks above peers (8/13)
Narrow moat 31/100
Evidence: High Range ₹182.02 – ₹343.46 Share as image

Fair value as of: Aug 13, 2026

From 17 valuation models · updated 4 days ago

Share price +21.0% over the past month.

Below-average quality, and screening another 21% overvalued on our models.

What matters now

  • Solid but not exceptional quality (47/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (₹182.02 to ₹343.46) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

₹354.85 ₹69.99 Fair Value ₹264.20 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range ₹69.99 – ₹354.85 · fair‑value band ₹182.02 – ₹343.46 · the ₹332.80 price screens above the ₹264.20 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Redington Limited (REDINGTON) currently trades at ₹332.80, while our model-based Fair Value estimate is ₹264.20, implying the stock looks roughly 20.6% overvalued today. The Quality Score stands at 47/100 (below-average quality), in the Technology sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Redington Limited generated revenue of ₹1.2T at a net margin of 1.3%. Revenue grew 25.1% year over year. It earns a return on equity of 13.1%. Net debt stands at ₹17.2B. Fundamentals as of Aug 13, 2026

Our scenario range runs from ₹182.02 (bear case) to ₹343.46 (bull case); at ₹332.80, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades near its 52-week high and 78% above its 52-week low, currently above its 200-day average. For context, the median of 10 Technology peers we cover trades at 0% fair-value upside, at -21%, REDINGTON screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income ₹132.24 ₹172.60 ₹472.90 76
ROIC Compounder ₹256.87 ₹357.56 ₹497.55 72
Gordon GGM ₹65.41 ₹142.80 ₹240.27 70
All 17 models by family
DCF Models
Owner Earnings ₹296.01 ₹568.61 ₹1,089 31
Earnings-Based
Graham-Dodd ₹129.62 ₹675.08 ₹933.84 54
Lynch FV ₹184.94 ₹264.20 ₹343.46 50
PEG = 1.0 ₹184.94 ₹264.20 ₹343.46 46
EPV ₹221.48 ₹258.03 ₹290.52 59
Dividend Discount
Gordon GGM ₹65.41 ₹142.80 ₹240.27 70
DDM Multi-Stage ₹65.41 ₹116.98 ₹148.82 61
Multiples
P/E Multiple ₹400.30 ₹533.74 ₹667.17 63
P/S Multiple ₹243.04 ₹324.05 ₹405.07 58
P/B Multiple ₹243.04 ₹324.05 ₹405.07 55
EV/EBIT ₹482.26 ₹638.23 ₹794.20 53
EV/EBITDA ₹400.93 ₹529.79 ₹658.65 54
EV/Revenue ₹250.90 ₹352.28 ₹453.66 43
Asset-Based
NCAV (Graham) ₹64.99 ₹87.08 ₹129.97 50
Economic Profit
Residual Income ₹132.24 ₹172.60 ₹472.90 76
ROIC Compounder ₹256.87 ₹357.56 ₹497.55 72
Growth Earnings
Growth-Adj P/E ₹324.03 ₹462.90 ₹601.77 68

Widest divergence: DCF Models (₹568.61) versus Asset-Based (₹87.08). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) ₹1.2T
Revenue growth (YoY) +25.1%
Net margin 1.3%
Return on equity 13.1%
Free cash flow −₹1.7B FY2026
P/E ratio 17.5
More key figures
Operating margin 1.7%
EPS (TTM) ₹19.07
Dividend yield 2.2%
EPS growth (YoY) -41.1%
Net debt ₹17.2B FY2026

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 47/100

Of which business quality 47 · Market factors (momentum, volatility) 73

Profitability 47
Margins and returns on capital today
Quality Growth 43
Are margins and returns improving?
Cashflow 15
Earnings quality: real cash, not paper profit
Fin. Strength 53
Balance sheet, leverage, solvency risk
Investment 55
Disciplined investing over empire-building
Low Volatility 51
Calm price path (market factor)
Momentum 77
Price trend over the last 3–12 months (market factor)
52W Momentum 91
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Redington Limited distributes information technology, mobility, and other technology products in India, the Middle East, Turkey, Africa, and South Asian countries.

Full company description

Redington Limited distributes information technology, mobility, and other technology products in India, the Middle East, Turkey, Africa, and South Asian countries. It provides AI and automation, software applications, security, digital printing, data and analytics, infrastructure, 3D printing, network modernization, cyber security, solar, gaming, AE and VR, home automation, wearables, and displays; and firewalls, access service edge, endpoint security, and identity and access management solutions. The company also offers software and hardware solutions, such as laptops, tablets, servers, software, notebooks, workstations, networking, power supply, desktops, accessories, components, and lighting products for mobility, computing, printing, automation, gaming, and solar applications. In addition, it is involved in the marketing, sale, and maintenance of computer hardware, accessories and spare parts; wholesale of mobile phones and devices, electronic household appliances, telecommunication products, and cosmetics; artificial intelligence activities; distribution of renewable energy products, information technology, spare parts, and telecommunication products; cloud services and software sales; public materials transportation; requisites trading of computer software, computer equipment, telephones and telecommunication equipment, and data processing; import and export of computers, computer peripherals, and components. Further, the company provides supply chain management, logistics, payment intermediation, hardware support and maintenance, and business and knowledge process outsourcing services; and cloud consulting, managed, and security solutions. It serves resellers, retailers, system integrators, and independent service vendors of technology products and solutions. The company was formerly known as Redington (India) Limited and changed its name to Redington Limited. Redington Limited was incorporated in 1961 and is headquartered in Chennai, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Redington Limited reported revenue of ₹1.2T in FY2026 versus ₹626B in FY2022, a compound +17.5%/yr. Reported net income was ₹14.9B in FY2026, compounding +3.9%/yr from FY2022.

Growth Quality 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2026)
₹1.2T
Latest YoY
+20.0%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+14.5%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+15.9%
Avg. growth/yr (21Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+17.5%
Revenue +17.5%/yr
FY22 ₹626B
FY23 ₹793B
FY24 ₹893B
FY25 ₹993B
FY26 ₹1.2T
Net income +3.9%/yr
FY22 ₹12.8B
FY23 ₹13.9B
FY24 ₹12.2B
FY25 ₹16.0B
FY26 ₹14.9B
Character of growth · EPS growth decomposed (2015-2026) +14.8 % p.a.
Revenue per share +12.6 pp

of which total revenue +12.3 pp · buybacks/dilution +0.3 pp

EBIT margin −1.3 pp
Tax rate +0.6 pp
Residual (interest, one-offs) +2.9 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

REDINGTON screens 21% overvalued. Compare with International Business Machines Corporation →

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Cite: Fair Value Calculator (2026). "Redington Limited Fair Value". https://www.fairvalue-calculator.com/stock/REDINGTON

Peer Group

Information Technology Services · 490 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 47 · Below median
Fair Value upside −21% · Below median
Return on equity (TTM) 13% · Above median
Return on assets 4% · Above median
Net margin (TTM) 1% · Below median
Operating margin (TTM) 2% · Below median
Revenue growth 25% · Top 25%
Dividend yield (TTM) 2.2% · Above median

Valuation Multiples vs Information Technology Services median · lower = cheaper

P/E (TTM) 17.5× · Cheaper than median
P/B 2.15× · Pricier than median
P/S (TTM) 0.18× · Cheaper than 75% of peers
EV/EBITDA 9.3× · Cheaper than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 6 · sector 33
FUTURE 100 · sector 30
PAST 52 · sector 35
HEALTH 100 · sector 97
DIVIDEND 44 · sector 40

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Information Technology Services stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
International Business Machines Corporation IBM $235.98 $175.76 -26%
Accenture plc ACNN 2,460 MXN 300.07 MXN -88%
Tata Consultancy Services Limited TCS ₹2,350 ₹3,473 +48%
Infosys Limited INFY ₹1,176 ₹1,998 +70%
HCL Technologies Limited HCLTECH ₹1,365 ₹1,722 +26%
Wipro Limited WIPRO ₹183.94 ₹314.26 +71%
Tech Mahindra Limited TECHM ₹1,625 ₹1,521 -6%
Samsung SDS Co 018260 235,500 KRW 235,321 KRW -0%
Persistent Systems Limited PERSISTENT ₹5,474 ₹3,259 -40%
Hyundai Autoever Corporation 307950 433,000 KRW 186,323 KRW -57%

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Frequently asked questions

Is Redington Limited (REDINGTON) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of ₹264.20 versus a price of ₹332.80, about −21% (overvalued).
What is the fair value of REDINGTON?
Our model-based fair value for Redington Limited is ₹264.20 (as of Aug 13, 2026), built from audited fundamentals. The current price is ₹332.80.
What is the quality score of REDINGTON?
Redington Limited has a Quality Score of 47/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Redington Limited (REDINGTON)?
Redington Limited reported trailing-twelve-month revenue of about ₹1.2T (latest available figure, as of Aug 13, 2026).
What is the net profit margin of REDINGTON?
The net profit margin of Redington Limited is about 1.3%, meaning it keeps roughly 1.3% of revenue as net income. Based on the latest reported figures.
Does Redington Limited pay a dividend?
Redington Limited currently shows a dividend yield of about 2.19% relative to its recent price (as of Aug 13, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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