Reliable Data Services Ltd is Rated Hold

Current Rating and Its Significance

MarketsMOJO’s 'Hold' rating for Reliable Data Services Ltd indicates a balanced view of the stock’s prospects. This rating suggests that while the company demonstrates solid fundamentals and growth potential, certain factors advise caution, recommending investors neither aggressively buy nor sell at this stage. The rating was adjusted on 22 December 2025, reflecting a recalibration of the company’s overall mojo score from 74 to 67, signalling a more measured stance compared to the previous 'Buy' grade.

Here’s How the Stock Looks Today

As of 24 December 2025, Reliable Data Services Ltd continues to show robust financial health and market performance. The stock has delivered a remarkable 92.60% return over the past year, significantly outperforming the BSE500 benchmark return of 6.20%. Year-to-date gains stand at an impressive 111.15%, underscoring the company’s strong market momentum.

Despite this strong price appreciation, the current 'Hold' rating reflects a nuanced evaluation across four key parameters: Quality, Valuation, Financial Trend, and Technicals.

Quality Assessment

The company’s quality grade is assessed as average. Reliable Data Services Ltd has demonstrated healthy long-term growth, with net sales increasing at an annual rate of 45.06%. The latest quarterly net sales reached ₹69.13 crores, growing at an exceptional 191.56% rate. Profit after tax (PAT) for the latest six months stands at ₹3.92 crores, reflecting a growth rate of 53.13%. Additionally, profit before tax excluding other income (PBT less OI) for the quarter is ₹3.03 crores, up 74.14%. These figures indicate a company with solid operational performance, though the average quality grade suggests some areas for improvement in operational efficiency or risk management.

Valuation Perspective

Reliable Data Services Ltd holds a very attractive valuation grade. The company’s return on capital employed (ROCE) is a healthy 15.4%, signalling efficient use of capital to generate profits. The stock trades at an enterprise value to capital employed ratio of 2, which is favourable compared to peers’ historical averages. Despite the strong price appreciation, the company’s PEG ratio is a low 0.1, indicating that earnings growth is outpacing the stock price increase, which may appeal to value-conscious investors seeking growth at a reasonable price.

Financial Trend

The financial trend for Reliable Data Services Ltd is positive. The company’s profits have surged by 140.2% over the past year, outstripping the stock’s 92.60% return. This strong earnings growth supports the stock’s market performance and underpins the positive financial grade. The majority shareholding remains with promoters, which can be a stabilising factor for governance and strategic direction.

Technical Analysis

From a technical standpoint, the stock is mildly bullish. Recent price movements show a 1-month gain of 11.94% and a 3-month gain of 22.65%, reflecting positive momentum. However, the one-day and one-week changes are negative at -1.93% and -1.28% respectively, suggesting some short-term volatility. This mild bullishness supports the 'Hold' rating, indicating that while the stock has upward potential, investors should be mindful of near-term fluctuations.

Investment Implications

For investors, the 'Hold' rating on Reliable Data Services Ltd suggests a cautious approach. The company’s strong growth metrics and attractive valuation make it a compelling candidate for long-term investment. However, the average quality grade and mild technical signals advise monitoring the stock closely for any shifts in fundamentals or market sentiment. Investors may consider maintaining existing positions while awaiting clearer signs of sustained momentum or operational improvements before increasing exposure.

Summary

Reliable Data Services Ltd’s current 'Hold' rating by MarketsMOJO, updated on 22 December 2025, reflects a comprehensive evaluation of its present-day fundamentals and market position as of 24 December 2025. The company exhibits strong growth in sales and profits, attractive valuation metrics, and positive financial trends. However, average quality and mild technical signals temper enthusiasm, suggesting investors maintain a balanced view. This rating serves as a guide for investors to weigh the company’s promising growth against the need for prudent risk management in their portfolios.

Only Rs. 9,999 - Get MojoOne + Stock of the Week for 1 Year (MRP = Rs. 34,999) Start Today