Apple distributor Redington with high FII stake set for 22% upside; price targets, earnings estimates 

Redington share price: Shares of Redington Ltd, which counts Apple Inc, Dell, HP and Microsoft as its vendors, are in a short-term uptrend. The supply chain solutions provider and a distributor of technological products saw its stock rising 22% in the last three months. Rally in the shares of the technology distributor came after revenue of the firm crossed the Rs 1 lakh crore mark for the first time in the last fiscal. Revenue rose 20% to Rs 1.19 lakh crore against Rs 99,561 crore in FY25. However, profit fell to Rs 1,490 crore in FY26 against Rs 1604 crore in FY25.

On a quarterly basis too, the firm logged a 25.6% rise in net sales to Rs 33,213.03 crore in the March 2026 quarter against Rs 26,439.68 crore in March 2025 fiscal. 

According to Bloomberg estimates, the stock has a 12-month price target of Rs 328 against the last traded price of Rs 277.85. All four of the four analysts covering the stock have a 'Buy' rating. 

In the current session, the stock was trading 2.20% lower at Rs 275.95. Market cap of the firm fell to Rs 21,573 crore. 

Sentiments around the stock of the Apple distributor also turned positive after a report said Apple now manufactures roughly 25% of its global iPhones in India. 

Another positive for the stock is that it recorded a high FII stake of 63.27% in the June 2026 quarter.  On the other hand, DIIs owned 16.37% stake in the firm at the end of last quarter. 

Brokerage Monarch Capital has assigned a price target of Rs 340, implying an upside of 21.8% on the stock. It expects Redington to clock a revenue/EBITDA/PAT CAGR of 15.7%/16.9%/7.3% over FY25-FY28 estimates. EBITDA margins are expected to rise gradually, led by a rising contribution from higher-margin cloud, technology solutions and services. 

"We value the company at 12x FY28E EPS, arriving at a Target Price of Rs 340," said Monarch Capital. 

The brokerage expects revenue to reach Rs 1.32 lakh crore in the current fiscal and hit the mark of Rs 1.48 lakh crore in FY28.

Triggers behind the positive stance 

The brokerage expects a gradual recovery in enterprise technology spending, coupled with an upcoming refresh cycle for personal computers and servers, to provide a meaningful boost to the company's growth prospects over the coming years.

It also believes the increasing adoption of cloud computing, artificial intelligence infrastructure and cybersecurity solutions will accelerate demand for higher-margin technology offerings, supporting both revenue growth and profitability.

In addition, a favourable shift in the product mix towards cloud-based services and software solutions, along with sustained demand for premium mobile devices, is expected to drive further margin expansion and strengthen overall earnings performance.

Analysts' outlook

Virat Jagad, Sr. Technical Research Analyst at Bonanza appears bullish on the outlook of the stock. 

"Redington has staged a strong recovery after breaking above its key moving averages and is now trading above the long-term descending trendline, indicating a positive shift in sentiment. The stock is witnessing healthy buying interest, while the RSI remains above 60, reflecting improving momentum despite being slightly overbought. As long as the stock sustains above the Rs 270–272 zone, the bullish bias is likely to remain intact. On the upside, a decisive move above Rs 285 could accelerate the rally towards Rs 300, followed by Rs 315 in the coming weeks. Immediate support is placed at Rs 270, while Rs 260 remains the key positional support for maintaining the current uptrend."

Shitij Gandhi, AVP - Equity Technical Research, SMC Global Securities said, "Redington is displaying a constructive trend reversal on the daily chart after breaking above a long-standing falling trendline, signaling that the medium-term downtrend is likely come to an end. Following the breakout, the stock has entered a rectangle consolidation between Rs 270 and Rs 290, indicating healthy accumulation after the sharp up move. The price is also trading above its key moving averages, reflecting improving market structure and strengthening bullish momentum. The trendline breakout zone near Rs 255- Rs 260 is expected to act as a strong support on any corrective decline, while the immediate consolidation support is placed around Rs 270. On the upside, Rs 290 remains the key resistance, and a decisive close above this level could trigger the next leg of the rally."

Redington Ltd. is a supply chain solutions provider and a distributor of technology products, including IT hardware, software, and mobility devices. The Fortune 500 company serves as a link between global technology brands and a network of channel partners across emerging markets.