Reliable Data (RELIABLE)

Score breakdown: P/E: 2/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

Strengths

• Positive latest-quarter net profit of ₹3 Cr keeps the company profitable despite the downturn.
• ROE of 17.48% and ROCE of 16.61% indicate decent existing capital efficiency.
• Promoter holding of 67.79% aligns owner interests with minority shareholders.
• Trailing P/E of 12.97 is not optically expensive if earnings stabilise.

Concerns

• Sales growth of -29.78% and profit growth of -23.54% show material business contraction.
• Piotroski F-Score of 3/9 points to weak fundamental health and likely balance-sheet strain.
• P/B of 3.70 against book value of ₹35.87 leaves little asset-based margin of safety.
• Dividend yield of 0.03% means shareholders receive almost no income while waiting.

AI Analysis

At ₹132.80, Reliable Data is a small, ₹142 Cr financial services business that asks me to pay 12.97 times trailing earnings and 3.70 times book value of ₹35.87. The return numbers are respectable at first glance: ROE of 17.48% and ROCE of 16.61%. But my job is to look beyond the surface. Sales have collapsed by 29.78% and profits by 23.54%. The latest quarter shows ₹23 Cr in sales and ₹3 Cr in net profit, so the operation is still alive, but a Piotroski F-Score of 3 out of 9 screams financial deterioration. For a company with a 0.66 debt-to-equity ratio, leverage is not alarming, but in financial services even moderate debt hurts when revenue is shrinking. The dividend yield is a negligible 0.03%, so I am being paid almost nothing to wait for a recovery. I cannot see a wide moat here; this is a tiny player in a crowded 'other financial services' space, and the negative growth suggests limited pricing power or demand. The promoter holding of 67.79% gives me some comfort about insider alignment, but ownership alone does not make a bargain. Benjamin Graham taught me to buy with a margin of safety. At 3.7 times book and with falling returns, the margin of safety is thin. The stock is well above its ₹80 low but below its ₹175 high, so Mr. Market is not sure what to make of it. Until sales stabilise and the F-Score improves, this looks like a possible turnaround rather than a proven one. I would keep it on the watchlist, not in the portfolio.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer