Redington could be among the bigger beneficiaries of the ongoing memory and storage shortage as the squeeze increasingly favours distributors with scale and the balance sheet to fund higher working capital, according to DAM Capital Research.
The brokerage has re-initiated coverage on Redington with a Buy rating and a target price of Rs 470, implying nearly 20% upside from the current market price of Rs 392. It expects the company to benefit as constrained, high-value inventory gets increasingly routed towards large distributors, while smaller players either reduce their scale or exit.
