Shares of Redington India Ltd, an IT solutions and technology solutions provider saw massive rally in intra-day session on Tuesday. Counters saw large volumes too.
On the BSE, nearly 75 lakh shares exchanged hands while the NSE reported volumes of 9.20 crore shares. Overall, the number of shares traded was 120-times more on Tuesday than the two week average. Such ferocity took the stocks up by 18 percent with each scrip quoting 285.
Neither correlation nor a clear cause can explain why the stocks surged by such volumes. The stock has clearly surpassed a brokerage target of ₹ 257.50 - set by analysts at Consensus Broking. The stock had set a 52-week high of 334.90 on 30th June.
REDINGTON FINANCIALS
With regards to financials, the company reported three times growth in net profit at ₹ 918 crores for quarter ending March 2025. On an annualized basis, net profit was reported at ₹ 1,821 crores for FY25. For June quarter thought, Redington net-profits hade declined - they were reported at ₹ 233 crores.
WHY REDINGTON SHARES JUMPED
Redington is in the business of IT solutions and technology, however, Redington has had top of mind recall as the distributor of smartphones - majorly Apple and Samsung products in India. Redington had signed up with Apple for distributing the Apple Mac systems as early as 2007 and the iPhone business in 2011). It may be assumed that news of iPhone 17 models may have caused investors to flock to the stocks.
However, Redington's business is not a monopoly; Ingram Micro too is an Apple distributor operating in India. Shares of Ingram Micro saw a minor bump in American exchanges, but stocks of Ingram Micro may not be available for Indian retail investors (some exchanges and brokerages offering).
IPHONE EFFECT?
While more data is awaited, investors may find some insights from Redington's annual report. The report for the last fiscal (FY25) brings to light two interesting facts. It discloses:
APPLE VOLUMES: In terms of market share, Apple emerged a significant player, shipping a record 12 million units and achieving a 10 percent market share, positioning it as the fourth-largest brand in India.
APPLE IN SOUTH INDIA: Redington (India) Investments Limited (RIIL), an associate Company of Redington Limited, was operating Apple retail stores in South India through its wholly owned subsidiary, Currents Technology Retail (India) Limited. It exited its business in FY21 and accordingly, the Company is evaluating available restructuring options including winding up.
Some netizens and publications assumed the likelihood of a single entity bulk/block deal; such details were yet to be made available on exchange platforms. It may hence be assumed that a large number of investors were flocking to Redington counters assuming favorable prospects - likelihood of better sales during India's festive season or that Redington could sell more iPhone and Apple products; or a blend of both. Several consumer-facing sectors such as FMCG and Auto may appear glittering after India's recent GST reforms. These reforms are believed to revive India's consumer buying.
Disclaimer: This article is for educational purposes. It should not be construed as financial advice.
