IIFL Securities's Stock Pick Today: Buy Redington with Target Rs 230

IIFL Securities has issued a buy recommendation for Redington India, a leading IT distributor and supply chain solutions provider. As of July 01, Redington's market price stands at Rs 224. The brokerage firm has set a target price of Rs 230, implying a potential upside of around 3%. IIFL Securities believes that Redington is well-positioned to benefit from the growing demand for IT products and services, driven by the rise of digital transformation and cloud computing. The company's strong distribution network and relationships with leading global technology vendors are expected to continue to drive its growth.

About Redington:

Redington (India) Limited is a leading technology distributor in India, providing distribution services for several global technology vendors, including HP, Dell, Apple, and Microsoft. The company offers a wide range of products, including laptops, desktops, servers, storage solutions, networking equipment, and software. Redington serves over 50,000 customers across India, including retailers, resellers, and system integrators. The company has a strong logistics and distribution network, with over 80 warehouses and 350 delivery points. Redington also offers a range of value-added services, such as technical support, warranty services, and financing options.

52 Week Price Trend:

Redington (NSE: REDINGTON), a prominent technology distributor, is currently trading at Rs 224. This falls within its 52-week range, which has seen highs of Rs 220 and lows of Rs 136.2. Redington's stock performance indicates a steady recovery from its recent lows and a potential for further growth. The company's strong market position, diverse product portfolio, and focus on emerging technologies position it well for long-term success.

Stratzy's MOST Analysis:

Redington has earned the highest rating of AAA from Stratzy's MOST framework, indicating minimal fundamental risks. This rating is a result of Redington's strong management, optimistic outlook, solid financial standing, and promising market trends. The AAA rating highlights Redington's overall strength and stability, making it a favorable investment choice with a low likelihood of adverse events that could impact its financial performance.

Company's Fundamentals:

Redington (NSE: REDINGTON) is a leading IT distribution company in India with a strong presence in the Asia Pacific region. Its key financial ratios provide insights into its valuation and dividend policy: * **Stock PE of 13.49** indicates that the company's shares are priced at approximately 13.49 times its annual earnings, suggesting it is relatively undervalued compared to the industry average. * **PB Ratio of 2.35** implies that the company's market value is approximately 2.35 times its book value, indicating a moderate premium over its asset value. * **Dividend Yield of 3.47%** represents the annual dividend paid by the company as a percentage of its current share price, indicating a moderate dividend payout policy that balances shareholder returns with capital reinvestment.

Fundamental and Technical information provided in this blog were last updated on 29 Jun, 2024

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