Nomura reiterates 'Buy' on Redington India

Nomura has reiterated a ‘Buy’ rating on Redington India, India’s largest distributor of IT and electronics products and set a target price of Rs 101. “In our view, the potential of the Indian market should be seen in the context of a doubling of the middle-class population in the next 10 years, which is likely to mean increasing average disposable income and should drive IT/electronic penetration rates in India” said Nomura in its report. The company has end-to-end coverage of the distribution value chain (procurement, warehousing, non-banking financial corporation’s and after-sales services). It has impressive processes in place and a strong conservative management team.