Top stock under Rs 200: Redington India

In the month of January, the stock has already reported about a 16% increase in its value.

Redington (India) Limited operates in the information technology product distribution business, supply chain solutions and after-sales services of information technology products. It is a midcap company with a market capitalization of Rs 13100 crore. It is a fundamentally sound company and has reported increased revenue and net profits in recent years. In the last four years, the company has reported an average of about 14% increase in its net profits, while it has generated above-average revenue of 10% as against industry average revenue of 8%.

Considering such strong growth and good fundamentals, more than 50% of the company’s stake is held by the institutions. Mutual fund houses also include this stock in their portfolio. The HNIs and the public hold about 43% of the stake of the company.

In the month of January, the stock has already reported about a 16% increase in its value. Moreover, it delivered about 145% returns to its shareholders last year and has also outperformed most of its peers and sector by a huge margin.

Today, the stock has surged over 1% despite the bad sentiment of the market. Moreover, the technical parameters suggest strong strength in the stock. RSI is already trading in the bullish zone while the trend strength indicator ADX points towards a strong uptrend of the stock. The bullishness of the stock is validated by the above-average volumes recorded recently. 178-level happens to be a critical level for the stock as it has tested this level three times before. Interestingly, this level is also the all-time high level of the stock.

Considering its strong bullishness, the stock has the potential to test its all-time high level once again, and possibly surge into uncharted territory.

Being a strong growth midcap company with technical strength, one can expect the stock to be trading higher in the short to medium term.