Why Did Redington’s Share Price Jump 14.75% Today?
I saw Redington’s stock on the NSE shoot up by almost 15% today. I’m wondering what’s behind this share price surge. Could it be some new deal or earnings surprise, or maybe something in the IT distribution space that’s causing this relatively silent stock to jump like a rocket? I’d love to know if this is a good time to buy in or just short-term hype. Plus, can you also give me a quick bit on the company’s overall health?
What a day for Redington. Its shares rocketed 14.75% on the NSE. It has hit a high of around Rs. 284, after dropping solid Q2 results for FY26 late yesterday.
What was the big trigger? Net profit jumped 32% year-on-year to Rs. 388 crore. It beat last year’s Rs. 293 crore. Stronger sales in IT hardware and cloud stuff is showing Redington’s numbers.
Diving into the numbers, revenue climbed 17% to Rs. 29,118 crore, showing broad growth across India, the Middle East, and even some Africa operations.
The margins also held steady at about 1.57% for profit after tax. Though EBITDA dipped a bit sequentially due to higher costs, but the market was still happy. It’s not perfect, but it’s way better than the flat growth some peers are seeing in this rather weak tech sector. To me, Redington looks healthy overall. It is debt-free, has consistent dividends, and up 43% YTD already.
This price hike is more due to momentum than pure hype. But with valuations stretching (at about 13x), I’ll wait for a dip. Why I’m saying 13x as overstretched? Because for a company that works with 1.57% PAT Margins, it should be trading below its last 2 years’ average P/E ratio (for me to consider it as a buy).
Nevertheless, analysts see upside to Rs. 370 (from the current Rs. 288 levels)
My Stock Engine app is giving Reddington an Overall Score of 64/100. It means it is a decent bet.
Disclaimer: This content is for informational purposes only and should not be considered investment advice.
