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Redington 22% Upside ENAM 2011 TOP Pick
Smart growth driven by BLACKBERRY
● In India, demand continues to remain strong driven by corporate capex 3G investments by telecom
companies from H2FY11 onwards would add to the momentum. Smart phones sales continue to be
strong.
● The NBFC has shown strong growth with no delinquencies. In International markets, improvement in
economic outlook & increasing share of value/non‐IT biz would lead growth in the long‐term.● Given low PC penetration in Redingtonʹs overseas markets ‐ Middle East, Africa & Turkey, long term
demand outlook seems encouraging. Addition of value based products in the recently acquired
Turkish entity (Arena) will add to the earnings visibility over next few years.
● We expect YoY topline growth of ~23% & 24% in FY11E & FY12E respectively with PAT YoY growth of
~27% & 19% in FY11E & FY12E respectively (including Arena). Maintain BUY rating with a target price of Rs 99.
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