CHENNAI: Shares of Redington Ltd surged nearly 8 percent on Friday, touching an intraday high of around Rs 310 on the BSE, as Apple’s iPhone 17 officially went on sale in India. The stock has now risen about 28% over the past five trading sessions, making it one of the top performers in the mid-cap segment.
The rally is being driven by expectations of strong demand for Apple’s latest iPhone and Redington’s role as one of its key distributors in India. Redington, which has been handling Apple’s distribution in India since 2007, will offer the iPhone 17 series across nearly 7,000 retail outlets in the country, supported by bank offers and exchange deals.
Investor enthusiasm has been amplified by the company’s recent earnings. In the June quarter, Redington posted a 12 percent year-on-year rise in net profit at Rs 275 crore and a 22 percent increase in revenue. Apple products now contribute about 34 percent of the company’s topline, up from 30 percent a year ago, highlighting its growing dependence on Apple’s product cycles.
The stock’s sharp rally has also been supported by unusually high trading volumes, with shares hitting upper circuits ahead of the launch. Market participants believe that the strong product rollout could boost Redington’s revenue in the coming quarters, providing near-term momentum.
However, analysts caution that while revenue visibility is strong in this case, margin pressures remain a risk. The company’s EBITDA margin in the recent quarter dipped slightly to 1.6 percent from 1.7 percent a year ago, indicating cost pressures. Sustainability of demand beyond the initial launch phase, competitive offerings from other smartphone makers, and broader macroeconomic conditions will also be crucial.
At current levels, the stock is trading well above key moving averages, reflecting strong bullish sentiment. But after a 28 percent rise in just five sessions, valuation concerns could trigger some profit-booking in the near term.
Dr. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said: “We have observed a trend in the markets where certain investors use a ‘pump and dump’ strategy in mid-cap stocks. They push up prices and then exit, leaving retail investors exposed. This practice is more common in small- and mid-cap segments, where regulatory intervention is often limited.”
Market analysts believe that Redington’s close association with Apple positions it as a key beneficiary of iPhone 17 demand in India, but investors will be watching sales data, quarterly results, and management commentary to assess whether the momentum can be sustained beyond the launch period.