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Feb 14, 2017, 06.04 PM | Source: Moneycontrol.com

Buy Redington India; target of Rs 140: Axis Direct

Axis Direct is bullish on Redington India has recommended buy rating on the stock with a target price of Rs 140 in its research report dated February 08, 2017.

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Buy Redington India; target of Rs 140: Axis Direct

Axis Direct is bullish on Redington India has recommended buy rating on the stock with a target price of Rs 140 in its research report dated February 08, 2017.

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, Axis Securities Limited |


Axis Direct's research report on Redington India

Redington’s Q3FY17 revenue/PAT were better than our estimates led by 28% YoY growth in India (39% share) and 18% YoY growth in overseas (61%). The PC business grew higher than the industry in both the geographies. Non-IT maintained growth momentum. Working capital reduced significantly to 43 days (vs. 60 days in Q3FY16).

Outlook

We expect 13%/14% CAGR in revenue/EPS over FY16-18. We reduce our target PE to 10x (vs. 12x earlier) due to languishing growth in IT hardware spends and margin profile which impacts near-term visibility. Redington will continue to grow higher than the industry. Our revised TP stands at Rs 140 (10x FY18E EPS) vs. Rs 167 earlier, which implies 34% upside from CMP of Rs 105. The stock trades at 8.5x/ 7.5xFY17E/FY18E EPS of Rs 12/14.

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Disclaimer:
The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

To read the full report click here

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Buy Redington India; target of Rs 140: Axis Direct

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