NSEI:RELIABLE

Stock Analysis Report

Reliable Data Services

Executive Summary

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

Rewards

Trading at 58.3% below its fair value

Risk Analysis

Does not have a meaningful market cap (₹345M)

Profit margins (6.1%) are lower than last year (9.5%)



Snowflake Analysis

Flawless balance sheet and undervalued.


Similar Companies

Share Price & News

How has Reliable Data Services's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RELIABLE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

6.4%

RELIABLE

1.8%

IN IT

-0.8%

IN Market


1 Year Return

-21.4%

RELIABLE

7.9%

IN IT

11.1%

IN Market

Return vs Industry: RELIABLE underperformed the Indian IT industry which returned 5.7% over the past year.

Return vs Market: RELIABLE underperformed the Indian Market which returned 11.1% over the past year.


Shareholder returns

RELIABLEIndustryMarket
7 Day6.4%1.8%-0.8%
30 Day-2.9%0.8%-2.3%
90 Day3.8%6.3%2.1%
1 Year-21.2%-21.4%10.7%7.9%13.1%11.1%
3 Yearn/a71.1%61.1%22.9%16.2%
5 Yearn/a57.0%42.5%34.9%22.6%

Price Volatility Vs. Market

How volatile is Reliable Data Services's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Reliable Data Services undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RELIABLE (₹34) is trading below our estimate of fair value (₹81.62)

Significantly Below Fair Value: RELIABLE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: RELIABLE is good value based on its PE Ratio (10.8x) compared to the IT industry average (11.3x).

PE vs Market: RELIABLE is good value based on its PE Ratio (10.8x) compared to the Indian market (13.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate RELIABLE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RELIABLE is good value based on its PB Ratio (0.8x) compared to the IN IT industry average (0.9x).


Next Steps

Future Growth

How is Reliable Data Services forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

9.3%

Forecasted Software industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Reliable Data Services has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Reliable Data Services performed over the past 5 years?

19.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RELIABLE has high quality earnings.

Growing Profit Margin: RELIABLE's current net profit margins (6.1%) are lower than last year (9.5%).


Past Earnings Growth Analysis

Earnings Trend: RELIABLE's earnings have grown by 19.7% per year over the past 5 years.

Accelerating Growth: RELIABLE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: RELIABLE had negative earnings growth (-33.8%) over the past year, making it difficult to compare to the IT industry average (7.4%).


Return on Equity

High ROE: RELIABLE's Return on Equity (9.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Reliable Data Services's financial position?


Financial Position Analysis

Short Term Liabilities: RELIABLE's short term assets (₹440.3M) exceed its short term liabilities (₹202.3M).

Long Term Liabilities: RELIABLE's short term assets (₹440.3M) exceed its long term liabilities (₹43.7M).


Debt to Equity History and Analysis

Debt Level: RELIABLE's debt to equity ratio (29.6%) is considered satisfactory.

Reducing Debt: RELIABLE's debt to equity ratio has reduced from 99.5% to 29.6% over the past 5 years.

Debt Coverage: RELIABLE's debt is well covered by operating cash flow (33%).

Interest Coverage: RELIABLE's interest payments on its debt are well covered by EBIT (4.9x coverage).


Balance Sheet

Inventory Level: RELIABLE has a low level of unsold assets or inventory.

Debt Coverage by Assets: RELIABLE's debt is covered by short term assets (assets are 4.1x debt).


Next Steps

Dividend

What is Reliable Data Services's current dividend yield, its reliability and sustainability?

0.24%

Current Dividend Yield


Dividend Yield vs Market

company0.2%marketbottom25%0.6%markettop25%2.5%industryaverage1.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: RELIABLE's dividend (0.25%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: RELIABLE's dividend (0.25%) is low compared to the top 25% of dividend payers in the Indian market (2.52%).


Stability and Growth of Payments

Stable Dividend: RELIABLE is not paying a notable dividend for the Indian market, therefore no need to check if payments are stable.

Growing Dividend: RELIABLE is not paying a notable dividend for the Indian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: RELIABLE is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RELIABLE's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.6yrs

Average board tenure


CEO

Sanjay Pathak (49yo)

2.6yrs

Tenure

₹1,320,000

Compensation

Mr. Sanjay Kumar Pathak has been Chairman and Managing Director of Reliable Data Services Limited since July 31, 2017 and has been its Director since September 9, 2004. Mr. Pathak is responsible for the ex ...


CEO Compensation Analysis

Compensation vs Market: Sanjay's total compensation ($USD18.46K) is below average for companies of similar size in the Indian market ($USD50.21K).

Compensation vs Earnings: Sanjay's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
Sanjay Pathak
Chairman & MD2.6yrs₹1.32m16.14% 55.6m
Sandeep Jha
Whole Time Director18.9yrs₹960.00k13.34% 46.0m
Rakesh Jha
Whole Time Director17.4yrs₹960.00k15.73% 54.2m
Sunil Rai
Whole Time Director15.4yrs₹960.00k14.08% 48.5m
Anil Jha
Whole Time Director2.6yrs₹1.20m11.48% 39.6m
Ramakant Dwivedi
Non-Executive Independent Director2.6yrsno datano data
Ashwini Jha
Non-Executive Independent Director2.6yrsno datano data
Surya Prakash
Non Executive Independent Director2.6yrsno datano data
Sudeshana Chaudhury
Non-Executive Independent Director2.6yrsno datano data

2.6yrs

Average Tenure

48yo

Average Age

Experienced Board: RELIABLE's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Reliable Data Services Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Reliable Data Services Limited
  • Ticker: RELIABLE
  • Exchange: NSEI
  • Founded: 2001
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: ₹344.688m
  • Shares outstanding: 10.32m
  • Website: https://www.rdspl.com

Location

  • Reliable Data Services Limited
  • C-69 & 70, Sector-2
  • Near Metro Station Sector-15
  • Noida
  • Uttar Pradesh
  • 201301
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RELIABLENSEI (National Stock Exchange of India)YesEquity SharesININROct 2017

Biography

Reliable Data Services Limited provides customized services to banking, financial services, and other manufacturing industries in the field of back office processing, front office follow ups, and management services in India. It offers transaction processing services, such as pick-up and processing cheques/drafts/documents from clients; back office support for bank clearances and to expedite remittances; coordinating funds activity between banks and their clients; follow-up with correspondent banks to expedite the early clearance of cheques and remittances against the same; follow-up with correspondent banks for old outstanding amount of up country cheques sent for clearance; specialized collection of cheques and tracking of same and reporting at the frequency mentioned by the client; and collection of duplicate DDs against the lost/mutilated or time barred instruments. The company also provides human resources services, including recruitment solutions comprising placement services; payroll processing services; outsourcing solutions related to manpower; basic training facility to candidates; management compensation planning; bulk return filing; and provident fund and ESI related services. In addition, it engages in providing business consulting services; designing and installing systems for budgetary control, fund management, and costing; designing of accounting and office records; MIS and system reviews; financial projections and modeling; business valuations; due diligence reviews; strategic financial management; project feasibility studies; and process review and restructuring. Further, the company offers other services, such as digitization of records, bulk data entry job work, management of authorization centers, delivery and tracking of documents/bills, pick-up and processing of charge slips, address verification, and handling of IPOs. Reliable Data Services Limited was founded in 2001 and is based in Noida, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 13:15
End of Day Share Price2020/02/17 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.