Multibagger Alert: This supply chain and distribution solutions provider has gained over 128% in a year!

Multibagger Alert: This supply chain and distribution solutions provider has gained over 128% in a year!

by 5paisa Research Team Last Updated: Jan 25, 2022, 03:17 PM IST

Redington India Ltd has shown consistent business performance. 

Redington India Ltd, which is a leading distributor in technology and communication businesses in India and across the globe, has multiplied its shareholders’ wealth by almost 2.28 times in just trailing twelve months. The stock was trading at Rs 66.65 on 25 January 2021, from where it closed at Rs 152.40 on 24 January 2022 on the BSE.

The multibagger stock had one of the best quarterly performances in the past several years. Net sales for the quarter ended September 21 came in at Rs 15,287 crore compared to Rs 13,454 crore in Q2 FY21. That’s a high growth of 13.6% on a QoQ basis and 11% on a YoY basis. Its largest business vertical- IT, which contributes about 72% to the overall business, has grown by 18%. The EBITDA (exclusive of other income) was Rs 431.6 crore which saw an increase of 25.4% QoQ and 49% YoY. The company recorded a net profit of Rs 323 crore in the quarter which jumped by 35% sequentially and 75% on a YoY basis.

The company has a good dividend yield of 2.42% on top of being a multibagger. Even after paying off huge dividends, the company has free cash flows of Rs 1,058 crore.

Redington India Ltd is India’s leading distribution and supply chain solutions provider serving 37 emerging markets and covers IT and mobility spaces. Next-gen technologies like Artificial Intelligence (AI), Robotics, Big Data and Analytics, Internet of Things (IoT), and 5G communications present new opportunities for the company.

The stock has a 52-week high of Rs 179.25 and a 52-week low of Rs 66.25. As of 25 January 2022, the stock is trading at Rs 157.00 at 2:30 pm, up by about 3% on the BSE.

SENSEX
54,326.39
1,534.16 (2.91%)
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456.75 (2.89%)
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SENSEX
54,326.39
1,534.16 (2.91%)
Nifty 50
16,266.15
456.75 (2.89%)
Nifty Bank
34,276.40
960.75 (2.88%)

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