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Redington Limited (REDINGTON) Fair Value & Analysis

Technology · IN · Market cap ₹274B (≈ $2.9B) · ISIN INE891D01026

What is Redington Limited really worth?

RL Redington Limited REDINGTON · BSE
Price₹371.40
Fair Value₹360.93
Upside−2.8%
Quality47/100

Below-average quality, currently priced close to our fair value of ₹360.93.

As of Aug 23, 2026, the fair value of Redington Limited is ₹360.93 per share against a price of ₹371.40, so the fair value sits 3% below the price. A model estimate blended from multiple valuation models, recalculated regularly.

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Strengths

Low debt · generates free cash flow

Risks

!Expensive Growth (revenue 5y +15.9 %/yr)
!Thin margins · 1.3% net margin
!Narrow moat 35/100
!The models disagree: range ₹183.74 to ₹667.17
Evidence: High Range ₹183.74 – ₹667.17

Fair value as of: Aug 23, 2026

From 25 valuation models · updated 14 days ago

Share price +6.7% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The model range is unusually wide (₹183.74 to ₹667.17). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.

Price vs Fair Value (5 years)

₹372.40 ₹67.75 Fair Value ₹360.93 Apr 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 23, 2026.

How to read this chart

60‑month range ₹67.75 – ₹372.40 · fair‑value band ₹183.74 – ₹667.17 · the ₹371.40 price screens above the ₹360.93 fair value. Dashed = 300-day average. As of Aug 23, 2026.

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Analysis

Redington Limited (REDINGTON) currently trades at ₹371.40, while our model-based Fair Value estimate is ₹360.93, implying the stock looks roughly 2.9% fairly valued today. The Quality Score stands at 47/100 (below-average quality), in the Technology sector. Bull case: the Growth Earnings group reads highest at a median of ₹461.28 per share, and 13 of the 25 models we run sit above the ₹371.40 price. Bear case: the Asset-Based group reads lowest at ₹87.08, and 12 of the 25 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Redington Limited generated revenue of ₹1.3T at a net margin of 1.3%. Revenue grew 34.6% year over year. It earns a return on equity of 13.1%. Net debt stands at ₹15.3B. Fundamentals as of Aug 23, 2026

Our scenario range runs from ₹183.74 (bear case) to ₹667.17 (bull case); at ₹371.40, 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 98% above its 52-week low, currently above its 200-day average. For context, the median of 10 Technology peers we cover trades at 69% fair-value upside, at −3%, REDINGTON screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly ₹14.84 per share, which is 5.6 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced 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. Every input is real reported data, nothing guessed.

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
FCF DCF ₹23.13 ₹31.72 ₹48.10 80
Growth DCF ₹23.01 ₹30.79 ₹45.29 79
EPV ₹244.78 ₹285.47 ₹321.64 74
All 25 models by family
DCF Models
FCF DCF ₹23.13 ₹31.72 ₹48.10 80
Owner Earnings ₹290.66 ₹556.83 ₹1,064 72
5Y Revenue Exit ₹197.36 ₹402.29 ₹696.90 70
5Y EBITDA Exit ₹290.27 ₹600.40 ₹1,010 72
5Y P/E Exit ₹280.60 ₹579.77 ₹939.14 68
10Y Revenue Exit ₹133.36 ₹314.23 ₹622.62 62
10Y EBITDA Exit ₹206.81 ₹465.65 ₹899.49 64
10Y P/E Exit ₹200.16 ₹449.89 ₹837.06 60
Earnings-Based
Graham-Dodd ₹129.62 ₹671.73 ₹928.93 64
Lynch FV ₹183.74 ₹262.48 ₹341.23 61
PEG = 1.0 ₹183.74 ₹262.48 ₹341.23 57
EPV ₹244.78 ₹285.47 ₹321.64 74
Dividend Discount
Gordon GGM ₹65.41 ₹142.80 ₹240.27 65
DDM Multi-Stage ₹65.41 ₹116.98 ₹148.82 66
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 ₹519.98 ₹688.58 ₹857.17 66
EV/EBITDA ₹429.18 ₹567.51 ₹705.84 67
EV/Revenue ₹269.90 ₹379.48 ₹489.07 54
Asset-Based
NCAV (Graham) ₹64.99 ₹87.08 ₹129.97 54
Growth DCF
Growth DCF ₹23.01 ₹30.79 ₹45.29 79
Economic Profit
Residual Income ₹132.24 ₹172.60 ₹472.90 67
ROIC Compounder ₹284.47 ₹393.47 ₹542.50 71
Growth Earnings
Growth-Adj P/E ₹322.90 ₹461.28 ₹599.66 67

Widest divergence: Growth Earnings (₹461.28) versus Growth DCF (₹30.79). Highest evidence: FCF DCF (80).

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Key figures & financial health

P/E ratio 17.1
P/S ratio 0.21 P/E × margin
EPS (TTM) ₹21.75 price ÷ EPS = P/E 17.1
Dividend yield 1.9% payout 33.1%
Net margin 1.3% FY2025
Return on equity 13.1% TTM
More key figures
Profitability
Return on assets (EBIT) 8.1% avg 5y
Operating margin 1.9% TTM
Growth
Revenue (TTM) ₹1.3T TTM
Revenue growth (YoY) +34.6% 3y avg +14.5%
EPS growth (YoY) +76.7%
Balance sheet & cash flow
Free cash flow ₹489M FY2025
Net debt ₹15.3B FY2025 · ≈ 31.2 yrs of FCF

Figures from reported company fundamentals · as of Aug 23, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 47/100

Of which business quality 46 · Market factors (momentum, volatility) 83

Profitability 47
Margins and returns on capital today
Quality Growth 42
Are margins and returns improving?
Cashflow 8
Earnings quality: real cash, not paper profit
Fin. Strength 56
Balance sheet, leverage, solvency risk
Investment 55
Disciplined investing over empire-building
Low Volatility 48
Calm price path (market factor)
Momentum 96
Price trend over the last 3–12 months (market factor)
52W Momentum 100
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.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Redington Limited provides supply chain solutions in India and internationally. It offers hyperconverged infrastructure, enterprise storage, all-flash, storage visualization, and fault tolerant solutions; enterprise networking and WAN solutions; AI and automation, software applications, security, digital printing, data and analytics, infrastructure, 3D …

Full company description

Redington Limited provides supply chain solutions in India and internationally. It offers hyperconverged infrastructure, enterprise storage, all-flash, storage visualization, and fault tolerant solutions; enterprise networking and WAN solutions; 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 next-gen firewall, web application firewall, secure access service edge, endpoint security, and identity and access management solutions. The company also engages in the distribution of information technology, mobility, and other technology products comprising laptops, tablets, servers, software, notebooks, workstations, networking, power supply, desktops, accessories, components, and smart lighting products. In addition, it offers technology services comprising consulting as a service, training as a service, infrastructure transformation, software consulting, virtualization and application delivery, networking, cybersecurity, and cloud services; and logistics services, such as warehousing, reverse logistics, in plant logistics and project management, supply chain consulting, ecommerce, mission-critical, and transportation services. Further, the company provides supply chain management, sourcing and procurement, sales and lead generation, and finance and accounting services; and financial services comprising channel financing, project financing, leasing, credit card-based financing, and but now and pay later services, as well as cloud consulting, managed, and security solutions. It serves healthcare, finance, print services providers, hospitality, manufacturing, education, government, retail, and IT/ITes industries. 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

FY2021 – FY2025 · reported fiscal years

Redington Limited reported revenue of ₹1.2T in FY2025 versus ₹626B in FY2021, a compound +17.4%/yr. Reported net income was ₹14.9B in FY2025, compounding +3.9%/yr from FY2021.

Growth Quality 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
₹1.2T
Latest YoY
+19.9%
Avg. revenue 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. revenue 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. revenue growth/yr (9Y) 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.
+12.5%
Value creation/yr (5Y, in INR) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+16.3% · in INR
Earnings growth per share plus dividend yield: the value created per share and year.
Earnings growth per share+14.4%
Dividend yield1.9%
Trend Two data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.5Y 14.4% vs 10Y 12.6%, steady
Operating margin (EBIT) Operating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.2.1% (2020) → 1.8% (2025) · steady
Revenue +17.4%/yr
FY21 ₹626B
FY22 ₹794B
FY23 ₹893B
FY24 ₹993B
FY25 ₹1.2T
Net income +3.9%/yr
FY21 ₹12.8B
FY22 ₹13.9B
FY23 ₹12.2B
FY24 ₹16.0B
FY25 ₹14.9B

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

Peer Group

Information Technology Services · 488 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 −29% · 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 35% · Top 25%
Dividend yield (TTM) 1.9% · Above median

Valuation Multiples vs Information Technology Services median · lower = cheaper

P/E (TTM) 17.1× · Cheaper than median
P/B 2.70× · Pricier than median
P/S (TTM) 0.21× · Cheaper than 75% of peers
P/FCF 5.9× · Pricier than median
EV/EBITDA 10.2× · Pricier than median
PEG 0.41× · Cheaper than 75% of peers

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

Similar stocks

10 more Information Technology Services stocks, each showing price versus our Fair Value estimate (as of Aug 23, 2026).

Stock Price Fair Value vs Fair Value
International Business Machines Corporation IBM $235.59 $175.76 −25%
Accenture plc ACN $189.61 $334.27 +76%
Tata Consultancy Services Limited TCS ₹2,302 ₹3,473 +51%
Infosys Limited INFY ₹1,156 ₹1,958 +69%
HCL Technologies Limited HCLTECH ₹1,293 ₹1,722 +33%
Fiserv, Inc FI C$5.13 C$8.07 +57%
Wipro Limited WIT $1.83 $3.51 +92%
Fidelity National Information Services, Inc FIS $41.34 $19.28 −53%
Cognizant Technology Solutions Corporation CTSH $64.04 $132.01 +106%
Capgemini SE CAP €109.45 €222.79 +104%

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Frequently asked questions

Is Redington Limited (REDINGTON) overvalued or undervalued?
As of Aug 23, 2026, our model estimates a fair value of ₹360.93 versus a price of ₹371.40, about −3% upside (fairly valued).
What is the fair value of REDINGTON?
Our model-based fair value for Redington Limited is ₹360.93 (as of Aug 23, 2026), built from audited fundamentals. The current price: ₹371.40.
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 price target for Redington Limited (REDINGTON)?
Our model-based price target is the fair value of ₹360.93 (as of Aug 23, 2026) from 25 valuation models. Cautious scenario ₹183.74, optimistic scenario ₹667.17. It is a calculation from audited fundamentals, not an analyst target.
What is the Redington Limited stock forecast for 2026?
Our models put fair value at ₹360.93, about −3% upside versus a price of ₹371.40 (fairly valued). Cautious scenario ₹183.74, optimistic scenario ₹667.17. The calculation is refreshed regularly with new filings.
What is the revenue of Redington Limited (REDINGTON)?
Redington Limited reported trailing-twelve-month revenue of about ₹1.3T (latest available figure, as of Aug 23, 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 1.94% relative to its recent price (as of Aug 23, 2026).
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