Reliable Data Services Ltd Falls 6.35%: Key Events and Valuation Shifts This Week

16 February: Revenue Plunge Triggers Sharp Sell-Off and Lower Circuit Hit

On 16 February 2026, Reliable Data Services Ltd reported its Q3 FY26 results, revealing a significant revenue decline that overshadowed a modest profit rebound. The market reacted swiftly and negatively, with the stock plunging to its lower circuit limit, closing at ₹151.06, down 4.99% on the day. This represented a maximum permissible daily loss of ₹8.05 per share, reflecting intense selling pressure and panic among investors.

The stock opened sharply lower at ₹155.00, a gap down of 3.31% from the previous close, and traded in a volatile range between ₹157.98 and ₹151.06. The weighted average price was closer to the lower end, indicating dominant seller control throughout the session. Trading volume was moderate at 1,335 shares, with delivery volumes having surged significantly in the preceding days, suggesting heightened investor activity before the sell-off.

In contrast, the broader Sensex gained 0.70%, and the NBFC sector declined only marginally by 0.46%, underscoring that the stock’s sharp fall was driven by company-specific concerns rather than sector-wide weakness. Technically, the stock remains above its 100-day and 200-day moving averages, but it has slipped below its 5-day, 20-day, and 50-day averages, signalling short-term weakness and potential consolidation ahead.

17 February: Valuation Reassessment Amid Market Volatility and Mojo Grade Downgrade

The following day, 17 February, the company’s valuation metrics came under scrutiny amid ongoing market volatility. Reliable Data Services Ltd’s price-to-earnings (P/E) ratio stood at 14.49, a level that prompted a downgrade of its Mojo Grade from Buy to Hold by MarketsMOJO on 6 February 2026. Despite this downgrade, the valuation remains attractive relative to peers, with a price-to-book value (P/BV) of 2.62 and a robust return on equity (ROE) of 19.67%.

Comparative analysis showed Reliable Data Services Ltd trading at more reasonable multiples than many NBFC peers, such as InfoBeans Technologies and Blue Cloud Software, whose P/E ratios exceed 27 and 28 respectively. The company’s EV to EBITDA ratio of 10.06 and EV to EBIT of 13.46 further support a balanced valuation, contrasting with more expensive or loss-making competitors.

Financially, the company demonstrated operational efficiency with a return on capital employed (ROCE) of 15.39% and a PEG ratio of 0.47, suggesting earnings growth is not fully priced in. However, the absence of dividend yield indicates reinvestment of earnings for growth. The stock’s recent one-year return of 127.19% far outpaced the Sensex’s 9.66%, though short-term price weakness persisted with a 4.99% drop on 16 February and a 3.4% loss over the prior week.

18 to 20 February: Subdued Trading and Continued Price Pressure

From 18 to 20 February, Reliable Data Services Ltd’s stock price exhibited limited movement, closing at ₹152.85 (-0.33%) on 18 February, ₹152.95 (+0.07%) on 19 February, and ₹151.15 (-1.18%) on 20 February. Trading volumes remained low, reflecting subdued investor interest amid ongoing uncertainty.

The Sensex showed mixed performance during these days, rising 0.43% on 18 February, falling 1.45% on 19 February, and recovering 0.41% on 20 February. Despite the broader market’s fluctuations, the stock’s price remained under pressure, closing the week well below its opening level.

These days saw no major corporate announcements, and the stock’s technical positioning remained weak in the short term. The lack of significant buying interest suggests cautious sentiment among investors, likely influenced by the prior week’s earnings disappointment and valuation concerns.

Daily Price Performance: Reliable Data Services Ltd vs Sensex

Key Takeaways

Negative Price Momentum: The stock’s 6.35% weekly decline sharply contrasts with the Sensex’s 0.39% gain, highlighting company-specific challenges that weighed heavily on investor sentiment.

Impact of Earnings and Valuation: The Q3 FY26 revenue plunge triggered a lower circuit hit and panic selling, while the subsequent valuation reassessment and Mojo Grade downgrade to Hold reflected cautious market views despite attractive relative valuation metrics.

Technical and Liquidity Considerations: The breach of short- and medium-term moving averages and moderate trading volumes suggest a period of consolidation or further weakness in the near term, with longer-term moving averages providing some support.

Peer Comparison and Fundamentals: Reliable Data Services Ltd remains competitively valued within the NBFC sector, supported by strong ROE and ROCE figures, but short-term volatility and market dynamics warrant careful monitoring.

Conclusion

Reliable Data Services Ltd’s week was dominated by a sharp correction following disappointing quarterly results and a reassessment of its valuation amid market volatility. The stock’s 6.35% decline and lower circuit hit on 16 February underscore the fragile investor sentiment and company-specific concerns. While the valuation remains attractive relative to peers and the company exhibits strong profitability metrics, the downgrade to a Hold rating and technical weakness suggest a cautious near-term outlook. Investors should closely monitor upcoming developments and market conditions to gauge the stock’s trajectory going forward.

Only Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Start Today