Shares of Redington India Ltd. rose over 6%, the most in nearly two weeks, after analysts retained ‘buy’ after the company reported net income above average analyst estimate, for quarter-ended December.
Redington (India) Q3FY22 (Consolidated, QoQ)
- Revenue up 9% at Rs 16,600.74 crore Vs Rs 15,287.46 crore
- Net profit up 23% at Rs 397.06 crore Vs Rs 323.09 crore
- Ebit up 24% at Rs 491.51 crore Vs Rs 395.53 crore
- Margin at 3% Vs 2.6%
All the nine analysts tracking the company maintain ‘buy’. The overall consensus price of analysts tracked by Bloomberg imply an upside of 26.5%.
Trading volume was nearly four times the 30-day average at this time of the day.
Investec on Redington
- Retains ‘buy’ with the target price reduced to Rs 185 from Rs 190, still an implied upside of 11.31%
- Q3FY22 is a defining quarter for Redington on many counts: i) it marks a significant leadership transition, ii) the company’s scale and dominance continues to aid margin performance in a supply constrained environment, and iii) Q3FY22 appears to be the start of working capital normalization.
- Believes margins could decline once supply side shortages normalize, hence assuming lower margins in FY24 is a fair assumption.
- Effective tax rates could normalize to 23-24% from current 20% leading to limited or low earnings growth.
- Sees headwinds to margins and increasing working capital intensity through FY24E.
- Increases EPS for FY22/ FFY23/ FY24E by 8%/ 10.2%/ 4.8%.
- Cuts target P/E to 11x vs 12x earlier.
Source: Bloomberg, Brokerage Note
सोशल मीडिया अपडेट्स के लिए हमें
Facebook ( https://www.facebook.com/goldsilverreports/ )
linkedin (https://www.linkedin.com/in/nealbhai/ )
और Twitter ( https://twitter.com/goldsilverrepor ) पर फॉलो करें।
हमारी फ्री सर्विस और लोगो की paid सर्विस से कई गुना अच्छी है।
आपको हर दिन दिए जाएंगे 3 से 5 कॉल बिलकुल फ्री
हर CALL में PROFIT दिये जायेंगे
तो जल्दी से MCX CHANNEL को JOIN कर लो (NEAL BHAI REPORTS)
JOIN US CLICK HERE
EQUITY CHANNEL को JOIN कर लो (EQUITY FREE TIPS)
JOIN US CLICK HERE