Buy Redington, target price Rs 210: Axis Securities

Axis Securities has buy call on Redington with a target price of Rs 210. The current market price of Redington Ltd. is Rs 178.15. Time period given by analyst is 3-4 weeks when Redington's share price can reach defined target. Axis Securities recommended to keep stop loss at Rs 163.

Redington, incorporated in the year 1961, is a Mid Cap company (having a market cap of Rs 13910.08 Crore) operating in IT - Hardware sector.

Financials

For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 19080.78 Crore, up 13.38 % from last quarter Total Income of Rs 16828.32 Crore and up 24.60 % from last year same quarter Total Income of Rs 15313.32 Crore. Company has reported net profit after tax of Rs 391.91 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 30-09-2022, the company has a total of 78 Crore shares outstanding.

Investment Rationale
The weekly “Bollinger band” triggered a buy signal as stock closed above the upper Bollinger Band. The stock is well placed above 20, 50, 100and 200 key averages indicating positive momentum. Furthermore, the weekly strength indicator RSI is holding above a reading of 50 mark and its reference line indicates positive momentum.