Buy Redington, target price Rs 198: Nuvama Wealth

Nuvama Wealth brokerage has buy call on Redington with a target price of Rs 198. The current market price of Redington is Rs 184.8. Nuvama Wealth brokerage recommended to keep stop loss at Rs 176.

Redington, incorporated in the year 1961, is a Mid Cap company (having a market cap of Rs 14482.32 Crore) operating in IT - Hardware sector.

Redington key Products/Revenue Segments include Computer Hardware, Sale of services and Other Operating Revenue for the year ending 31-Mar-2022.


Financials
For the quarter ended 31-03-2023, the company has reported a Consolidated Total Income of Rs 21894.97 Crore, up .83 % from last quarter Total Income of Rs 21714.64 Crore and up 26.38 % from last year same quarter Total Income of Rs 17324.44 Crore. Company has reported net profit after tax of Rs 328.39 Crore in latest quarter.

The company’s top management includes Prof.J Ramachandran, Mr.Rajiv Srivastava, Mr.S V Krishnan, Ms.Anita P Belani, Ms.Chen Yi-Ju, Mr.B Ramaratnam, Mr.Tu Shu-Chyuan, Mr.V S Hariharan, Mr.Keith WF Bradley. Company has BSR & Co. LLP as its auditors. As on 31-03-2023, the company has a total of 78 Crore shares outstanding.

Investment Rationale
Stock closed at a 4-month high indicating strength —the set up qualifies for a 5-8% rally in days to come.