Redington is top gainer

Redington is the top gainer today on the BSE; from a close of Rs.241.45, it opened almost flat t Rs.242 and rose to an intraday high at Rs.274.65, with a 44x surge in volumes.

The reason? The company, which distributes technology has signed a distribution agreement with CrowdStrike, listed on the Nasdaq and a cybersecurity platform provider. Under this agreement, Redington will distribute and support CrowdStrike’s Falcon platform across India, aiming to meet rising demand for breach prevention, vendor consolidation, and scalable cybersecurity.

For Redington, offering CrowdStrike’s subscription-based security platform improves mix toward solutions and services. For CrowdStrike, this expands the ARR base outside traditional markets.

This is good news but what one needs to watch out for is the portion of Redington’s revenue & profit growth attributable to CrowdStrike / Falcon platform business in upcoming quarters and also on the speed of ARR growth and module adoption for CrowdStrike in India (and the role of the Redington channel).