Enam Securities has initiated coverage on supply chain management and IT distribution player Redington (India) (REDIL) with a sector out performer rating. "With a pan-India presence including 12,000+ channel partners, superior logistics capabilities, a sound credit management system and a scalable business architecture, REDIL is well set to capitalise on the high-growth Indian market, which has low PC penetration of less than 2%," the Enam note to clients said.
"REDIL has a strong presence in the Gulf, which is a goldmine for this industry, with approximately 2 million PC shipments low tax rates and an expected 14% CAGR in IT spends. Additionally, the withdrawal of Tech Data from the Middle East will enable Redington to gain market share especially in the PC enterprise systems segment, certain branded offerings and in high-margin value products," the note added.
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