Increase in profitability and industry-beating performance can be essential considerations in a stock for some investors. In this article, I will take a look at Reliable Data Services Limited’s (NSEI:RELIABLE) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers. See our latest analysis for Reliable Data Services
Commentary On RELIABLE’s Past Performance
I like to use data from the most recent 12 months, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. This blend allows me to assess various companies on a more comparable basis, using the most relevant data points. Reliable Data Services’s most recent earnings is ₹16.2M, which, in comparison to the previous year’s level, has risen by 25.55%. Since these values are relatively short-term, I have calculated an annualized five-year figure for Reliable Data Services’s earnings, which stands at ₹14.3M. This shows that, generally, Reliable Data Services has been able to gradually raise its profits over the past couple of years as well.
How has it been able to do this? Let’s take a look at whether it is solely a result of industry tailwinds, or if Reliable Data Services has seen some company-specific growth. The rise in earnings seems to be bolstered by a robust top-line increase overtaking its growth rate of expenses. Though this has caused a margin contraction, it has made Reliable Data Services more profitable. Looking at growth from a sector-level, the IN it industry has been growing, albeit, at a muted single-digit rate of 8.05% over the previous year, and a substantial 13.88% over the past five. This suggests that any tailwind the industry is gaining from, Reliable Data Services is capable of amplifying this to its advantage.
What does this mean?
Reliable Data Services’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? I suggest you continue to research Reliable Data Services to get a better picture of the stock by looking at:
1. Financial Health: Is RELIABLE’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
2. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.