Redington Limited’s (NSE:REDINGTON) Price Is Right But Growth Is Lacking After Shares Rocket 27%
Redington Limited (NSE:REDINGTON) shareholders would be excited to see that the share price has had a great month, posting a 27% gain and recovering from prior weakness. Looking further back, the 25% rise over the last twelve months isn’t too bad notwithstanding the strength over the last 30 days.
Although its price has surged higher, Redington’s price-to-earnings (or “P/E”) ratio of 16x might still make it look like a buy right now compared to the market in India, where around half of the companies have P/E ratios above 26x and even P/E’s above 50x are quite common. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the reduced P/E.
