Company Overview

Reliable Data Services Limited was established in 2001 as a Private Limited Company, initially named Reliable Data Services Private Limited. In 2017, it transitioned into a Public Limited Company, becoming Reliable Data Services Limited. Incorporated on March 22, 2001, its registered office is located in Delhi, India. The Company's Corporate Identification Number (CIN) is L72900DL2001PLC110145, and its registration number is 110145.

Reliable Data Services Limited is an India-based holding company engaged in providing customized services to various banking, financial services, and other manufacturing industries. Its services encompass back-office processing, front-office follow-ups, and management services. The company's offerings include transaction processing, human resource services, and other specialized services such as digitization of records, management of authorization centers, delivery and tracking of documents/bills to customers, and the pick-up and processing of charge slips.

Financial Performance and Market Position

The company has demonstrated significant financial growth. In the quarter ended March 2025 (Q4 FY25), net profit rose by 146.50% to ₹3.87 crore compared to ₹1.57 crore in the previous quarter (Q4 FY24). Sales increased by 90.55% to ₹53.01 crore in Q4 FY25 from ₹27.82 crore in Q4 FY24.

For the full financial year ended March 2025 (FY25), net profit grew by 99.56% to ₹9.02 crore, up from ₹4.52 crore in the previous year (FY24). Annual sales also saw a substantial rise of 64.51%, reaching ₹130.59 crore in FY25 from ₹79.38 crore in FY24.

Reliable Data Services Ltd currently has a market capitalization of ₹77.15 Cr (as of April 1, 2025). The company's operating revenue on a trailing 12-month basis is ₹86.87 Cr. It exhibits an annual revenue growth of 7%, a pre-tax margin of 9%, and a Return on Equity (ROE) of 9%, which is considered fair and indicates room for improvement. The company maintains a reasonable debt-to-equity ratio of 24%, suggesting a healthy balance sheet.

Key Financial Metrics

- Q4 FY2024-25 Performance: Net Sales of ₹53.01 crore, Net Profit of ₹3.87 crore

- FY2024-25 Performance: Net Sales of ₹130.59 crore, Net Profit of ₹9.02 crore

- Market Capitalization: ₹77.15 crore (as of 01-Apr-2025)

- Promoter Holding: 71.8%

- ROE (last 3 years): 12.5% (Note: The provided text states 9% for TTM and 12.5% for last 3 years, listed both for clarity)

- Debtors Days: 205 days (Note: High debtors days are mentioned as an investment consideration)

Business Operations and Services

The company operates as a comprehensive business process outsourcing (BPO) provider with a strategic focus on the financial services sector. Reliable Data Services Limited delivers customized services to banking, financial services, and other manufacturing industries, covering back-office processing, front-office support, and management services across India.

Its service portfolio includes:

- Human Resources Services: Recruitment, placement services, payroll processing, manpower outsourcing, basic training, management compensation planning, bulk return filing, and PF/ESI related services.

- Business Consulting: System design for budgetary control, fund management, costing, accounting record design, MIS and system reviews, financial projections, business valuations, due diligence, strategic financial management, project feasibility studies, and process review/restructuring.

- Operational Services: Digitization of records, bulk data entry, management of authorization centers, delivery and tracking of documents/bills, pick-up and processing of charge slips, and address verification, handling of IPOs.

The company caters to Banks & Financial Intermediaries and has established a robust network of over 300 locations and 2500 Feet On Street personnel.

Key Client Relationships

Reliable Data Services has secured agreements with numerous leading Multinational Corporations (MNCs) and Private Sector Banks, including Standard Chartered Bank, Deutsche Bank, HSBC, HDFC Bank Ltd, ICICI Bank, Axis Bank, Citibank, Yes Bank, IDBI, Union Bank, and Corporation Bank. Over the past 16 years, its client base has expanded to include various banks, insurance companies, financial institutions, financial service firms, and telecom companies.

Market Performance and Valuation

#### Current Market Position

Reliable Data Services Ltd's market capitalization stands at ₹77.15 Cr as of April 1, 2025. The company is listed and trades on both the NSE and BSE stock exchanges. Its 52-week high is ₹113.05, and its 52-week low is ₹53.65. As of April 1, 2025, its Price-to-Book (P/B) ratio is 1.33 times, representing a significant 75% discount compared to its peers' median range of 5.22 times. The Price-to-Earnings (P/E) ratio is 9.04 times, a 69% discount to its peers' median range of 29.12 times.

#### Investment Considerations

The company has a market cap of ₹76.7 Cr, with a revenue of ₹131 Cr and a profit of ₹10.4 Cr. It shows a low return on equity of 12.5% over the last 3 years and has high debtors amounting to 205 days. Promoter Holding is substantial at 71.8%.

From a technical perspective, the stock is trading close to its 50-day moving average (DMA) and is comfortably placed above its 200-DMA, trading approximately 16% above the 200-DMA. It needs to find support around the 50-DMA level to sustain further upward movement. The stock is currently forming a base on its weekly chart and is trading about 15% away from a crucial pivot point.

Leadership and Management

- Chairperson: Sanjay Kumar Pathak

- Promoters: Mr. Sandeep Kumar Jha and Mrs. Ranjana Kumar initially promoted the company. Currently, the promoters include Mr. Sanjay Kumar Pathak, Mr. Rakesh Jha, Mr. Sandeep Kumar Jha, Mr. Sunil Kumar Rai, and Mr. Anil Kumar Jha.

Subsidiaries

The Company operates through its subsidiaries, including Authentic Healthcare Services Pvt. Ltd. and Sharp Eagle Investigation Pvt. Ltd.

Reliable Data Services Limited represents a specialized player in the business process outsourcing sector, with a strong focus on financial services. The company has demonstrated significant growth in recent quarters, with revenue and profit showing substantial year-over-year improvements. With its extensive network, established client relationships with leading banks, and a diversified service portfolio, the company is well-positioned in the growing outsourcing market serving the financial sector in India.