Reddington shares tumbled more than 6% in early trading on May 17 as investors shunned the stock before the company reported a drop in fourth-quarter net profit the next day.
Net profit for the January-March period fell 10.9% year-on-year to Rs 310.1 crore from Rs 348 crore a year earlier. Net profit was mainly dragged down by weaker markets in the rest of the world.
EBITDA margins also contracted to 2.5% in the fourth quarter from 2.8% a year earlier. However, revenue rose 26.3% year-on-year to Rs 21,848.6 crore.
Shares of Redington were trading 2.4% at Rs 171.10 on the National Stock Exchange at 10:08 am. The stock fell to an intraday low of Rs 164.30 in the first half hour of trading on May 17.
About 2.9 million shares have changed hands on exchanges so far, nearly double the one-month daily average of 1.5 million shares.
In stark contrast to the quarterly earnings, the company recorded its highest-ever full-year revenue and net profit in FY23.
For the full year FY23, the company reported revenue of Rs 79,519 crore, up 27% year-on-year, while net profit rose 9% to Rs 1,393 crore.
This stock is also a bull, having rewarded investors with a return of nearly 300% over the past three years.