Moneycontrol PRO

Buy Redington (India); target of Rs 213: Prabhudas Lilladher

Prabhudas Lilladher is bullish on Redington (India) has recommended buy rating on the stock with a target price of Rs 213 in its research report dated November 10, 2021.

November 10, 2021 / 02:08 PM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Prabhudas Lilladher's research report on Redington (India)


Redington’s revenue growth of 11% YoY was below our and cons estimates (Ple: 15.4%, Cons: 14.3%) due to decline in overseas revenue, -0.4% YoY, while India business grew at strong rate of 30% YoY. Muted performance in overseas was led by decline of 23% YoY in SSA (7% of overseas revenue, due to ongoing shift of vendor business from Singapore to India initiated in 3Q21) and decline in Mobility business (32% of overseas revenue, -12% YoY). Enterprise IT continued to perform well in India (31% YoY) as well as overseas (41% YoY).



Outlook


We continue to value Redington on earnings multiple of 12x on Sep23 EPS of 17.7 to arrive at revised TP of Rs 213 (earlier: 202). Currently, Redington trades at 8.4x/7.9x on FY23/24E EPS of Rs17.2/Rs.18.3 respectively with Revenue CAGR of 14.8% and EPS CAGR of 7.3% over FY22-24E. Maintain BUY.


For all recommendations report, click here

Close

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.

Broker Research
first published: Nov 10, 2021 02:08 pm

stay updated

Get Daily News on your Browser
Sections
ISO 27001 - BSI Assurance Mark