Share of Redington India Limited has delivered 273 per cent return to its shareholders in one year. The share stood at Rs 96.05 on July 13, 2020. It has zoomed to Rs 358 today, translating into gains of 273 per cent during the period. In comparison, Sensex rose 44 per cent in one year.
Rs 5 lakh invested in the midcap share a year ago would have turned into Rs 18.63 lakh today.
The stock has gained 164 per cent since the beginning of this year. It opened 1.5 per cent higher at Rs 345.45 against the previous close of Rs 340.05 on BSE. It continued its strong upside momentum and rose 5.28 per cent to hit a fresh 52-week high of Rs 358.
With a market capitalisation of over Rs 13,000 crore, the share stands higher than 5 day, 10 day, 20 day, 50 day, 100 day, and 200-day moving averages.
According to MarketsMojo, the company has a strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.59. The technical trend has improved from Mildly Bullish on May 21, 2021, and the stock is technically in a Bullish range now and has generated a 85.38 per cent return since then. Multiple factors for the stock are Bullish like MACD, Bollinger Band, DOW, OBV, and KST.
It noted that the stock is trading at a premium compared to its average historical valuations and with a Return on equity (ROE) of 15.4, it has a fair valuation with a 2.7 Price to Book Value. Also, the company has high institutional holdings at 57.79 per cent and the EPS has increased to Rs 7.77 in March 2021 from Rs 3.06 in March 2020.
For FY21, revenue from operations grew 10.6 per cent to Rs 56,945.86 crore from Rs 51,465.17 crore in the previous year. Net profit stood at Rs 756.39 crore against Rs 515.21 crore in the previous year.
The company reported a 154 per cent jump in consolidated net profit to Rs 302.51 crore for the quarter ended March 2021. Profit in the year-ago period stood at Rs 119.20 crore. Revenue from operations grew 22 per cent to Rs 15,503.94 crore in the March-ended quarter against Rs 12,666.66 crore a year ago.
The company informed that strong growth was seen across IT Consumer, IT Enterprise & Mobility segments. Pro-Connect, its supply chain management, and warehousing solutions company, registered growth across all metrics with revenue growth of 36 per cent on a Year-on-Year basis.
Recently, the board of Redington India approved a bonus issue of one equity share of Rs 2 each for every share (1:1) held in the company. The record date for reckoning the eligible shareholders entitled to be allotted bonus shares has been fixed as August 20, 2021.
“The Board of Directors have considered, approved and recommended a bonus issue of one equity share of INR 2/- (Rupees Two only) each fully paid up for every one equity share of INR 2/- (Rupees Two only) each held as on the Record date decided for this purpose. This bonus issue will be subject to the approval of shareholders and other approvals, consents, permissions, conditions, and sanctions, as may be necessary,” the company said in an exchange filing.
“On account of the above bonus issue and in order to comply with the regulations, the record date of final dividend (including one-time special dividend) of FY2020-21 fixed as August 4, 2021, is now advanced to July 19, 2021, by the board,” the company added.