Reliable Data Services Limited

Technology — Information Technology Services · NSE

₹134.99−₹3.53 (−2.55%)

DalalBaazaar Score

58 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Low

Driven by micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Nothing obvious stands out as stretched — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:27 pm

Understanding the Business

Company site ↗

The 60-second version of Reliable Data Services Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Reliable Data Services Limited provides customized services to banking, financial services, and other manufacturing industries in the field of back-office processing, and front office follow ups and management services in India.

IndustryInformation Technology Services

SectorTechnology

Annual revenue₹185 Cr

How does it make money?

Turns over ₹185 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹10 left at the operating level before interest, tax and depreciation.

Who are its competitors?

The closest listed comparisons in its industry are TATA CONSULTANCY SERV LT, INFOSYS LIMITED, HCL TECHNOLOGIES LTD, WIPRO LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 13.0% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE32.0%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +154% while net margin moved -32% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+154%

Margin effect-32%

DalalBaazaar Score

58/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 9.6% is weak

Quality vs. Valuation

Company Quality

57/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

68/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

14.9x

3Y Median

14.4x

40 monthly readings · mean 15.0x · range 10.4x–22.2x

Sector Median

16.5x

median of 4 sector peers

🟡Currently trading close to its 3y median of 14.4x — the market is paying about what it usually pays for this company.

🟡Against its sector it is priced broadly in line with the peer median of 16.5x.

vs. its own history

Fair

14.4x median over 40 months · +4%

vs. sector peers

Fair

16.5x median of 4 peers · -10%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

10.1x

PEG

0.74

What's Good / What's Bad

🟢 What's Going Well3

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Very low debt
Debt/Equity of 0.29x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 59% over 3 years, from ₹29 Cr to ₹46 Cr.
🔴Inventory building faster than salesFinancial
Inventory up 11223% against revenue up 154% — stock may not be moving.
🟡Margins are compressingFinancial
EBITDA margin is down 4.9 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Self-funding with balance-sheet headroom
Positive free cash flow of ₹11 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 14.5% to 9.6%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 27% a year✓ 36.5% CAGR
Latest reported year was 45.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 8%✓ 9.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Interest cover stays above 3x✓ 3.7x
How much operating profit can fall before interest stops being comfortably covered.
5Free cash flow remains positive✓ ₹11 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

8 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 5 neutral · 0 weak

Market Cap

₹139 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

14.9x

Cheap

Cheap against the generic band

P/B Ratio

1.95x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹9.05

Profitable

Profitable on a per-share basis

ROE

9.6%

Moderate

Moderate capital efficiency

ROCE

13.0%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.29x

Low

Conservative leverage

Revenue Growth (YoY)

45.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

42.1%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.04%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹11 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

6.9%

Average

Average margins

Net Margin

3.7%

Average

Average bottom-line conversion

Current Ratio

1.69

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.30

Defensive

Steadier than the market

52W Range Position

43%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

141.5 / 140.5

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

28.0

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹73 Cr	₹79 Cr	₹131 Cr	₹185 Cr	+36.5%
EBITDA	₹11 Cr	₹13 Cr	₹22 Cr	₹18 Cr	+19.1%
EBITDA Margin	14.5%	16.6%	16.6%	9.6%	—
PAT (Net Profit)	₹4 Cr	₹5 Cr	₹9 Cr	₹7 Cr	+20.1%
EPS	₹4.62	₹5.13	₹10.03	₹6.67	+13.0%
ROE	8.9%	10.2%	15.8%	9.6%	—
ROCE	13.2%	12.7%	19.2%	13.0%	—
Total Debt	₹29 Cr	₹38 Cr	₹47 Cr	₹46 Cr	+16.7%
Free Cash Flow	-₹27 Cr	-₹2 Cr	₹0 Cr	₹11 Cr	—

🟢 Revenue has grown at 36.5% a year over 3 years.

🟢 EBITDA has grown at 19.1% a year over 3 years.

🔴 EBITDA Margin has fallen from 14.5% to 9.6% over 3 years (-4.9 pts).

🟢 PAT (Net Profit) has grown at 20.1% a year over 3 years.

🟢 EPS has grown at 13.0% a year over 3 years.

🟡 ROE has held roughly flat at 9.6% over 3 years.

🟡 ROCE has held roughly flat at 13.0% over 3 years.

🔴 Total Debt has grown at 16.7% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹27 Cr to ₹11 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹183 Cr

Total Liabilities

₹96 Cr

Cash & Equivalents

₹5 Cr

Operating Cash Flow

₹11 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

78.1%

Corporate Actions

Dividend Rate

₹0.05

Ex-Dividend Date

18 Sept 2026

Peer Comparison

Company	P/E	ROE
TATA CONSULTANCY SERV LT	17.3x	45.6%
INFOSYS LIMITED	15.8x	32.0%
HCL TECHNOLOGIES LTD	20.4x	24.6%
WIPRO LTD	14.5x	15.9%

Recent News

1 mixed5 general

Here's Why Reliable Data Services (NSE:RELIABLE) Has Caught The Eye Of Investors

Simply Wall Street, 20 May

Is Reliable Data Services the Best Stock in Its Sector? A Look at the Numbers

Univest, 07 Oct

Reliable Data Services passes all AGM resolutions with 99.99% majority

scanx.trade, 29 Sept

Reliable Data Services (NSE:RELIABLE): What Does Its Reg 74(5) Certificate for Q2 FY27 Mean?

Kalkine India, 06 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Reliable Data Services Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 04 Sept

Price Action: Meesho, Sansera Engineering gain 5-6% as brokerages retain 'buy' rating

Moneycontrol.com, 22 Sept

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongFinancial Health · Growth · Valuation

MiddlingBusiness Quality · Risk

WeakProfitability

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 2 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Debt / EBITDA stays below 2x · see Key things to watch ↑