20% Upper Circuit: Penny stock jumps after reporting 462% YoY net profit growth in Q3

Shares of micro-cap stock dealing with Bank & Financial Intermediaries hit 20 percent upper circuit after the company reported a remarkable 462 percent year-over-year profit growth in its latest earnings report. The strong performance reflects robust financial gains, boosting investor confidence.

Price Variation

During Monday’s trading session, shares of Reliable Data Services Ltd hit a 20 percent upper circuit to Rs.81.22 per share, rising from its previous close of Rs.67.69 apiece. Over the past five years, the stock delivered over 150 percent returns. 

Earnings Report 

Reliable Data Services Ltd saw a notable upswing in its stock price, driven by strong growth in both revenue and net profit, as reflected in its latest financial performance.  

In Q3 FY25, the company reported revenue of Rs.34.29 crore, marking a 67 percent increase from Rs.20.52 crore in Q3 FY24. On a quarterly basis, revenue surged 45 percent from Rs.23.71 crore in Q2FY25, highlighting steady business expansion.  

Net profit for the quarter witnessed a sharp 462 percent year-on-year rise to Rs.4.11 crore, compared to Rs.0.73 crore in the similar quarter of previous year. Additionally, on a quarterly basis, net profit saw an impressive 223 percent jump from Rs.1.27 crore in Q2 FY25, demonstrating robust earnings growth. 

At present, Reliable Data Services Ltd is trading at a Price-to-Earnings ratio of 14.12, significantly below the industry average of 44.67, indicating a relatively lower valuation. In terms of return metrics, the company’s Return on Capital Employed (ROCE) stands at 11.47 percent, while its Return on Equity (ROE) is 9.39 percent, reflecting its financial efficiency.

Also read: Penny pharma stock hits 5% upper circuit after receiving ₹182 Cr order from UK based Co.

Services Offered

Reliable Data Services offers transaction processing, including cheque collection, bank clearances, and fund coordination. Their HR services cover recruitment, payroll processing, outsourcing, and compliance support. Management services include business consulting, financial modeling, budgeting, and strategic planning. They also provide digitization, bulk data entry, document tracking, address verification, and process restructuring.

Segment Revenue

The company reported segment revenue of Rs.21.38 crores from the BFSI segment, contributing 64 percent, and Rs.12.03 crores from the non-BFSI segment, accounting for 36 percent, highlighting its diversified revenue streams across financial and non-financial sectors.

Clientele 

The company collaborates with leading banks such as Standard Chartered Bank, Deutsche Bank, HSBC, HDFC Bank, ICICI Bank, Axis Bank, Citibank, and Yes Bank. The duration of these partnerships varies depending on the services offered.

Shareholding Pattern 

As per the December 2024 shareholding pattern, promoters own 71.77 percent of Reliable Data Services Ltd., while Foreign Institutional Investors (FII) hold 0.08 percent, and retail investors account for 28.15 percent. Reports also indicate that Rohit Sharma holds a 1.00 percent stake in the company.

Written by – Siddesh S Raskar

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