Oracle Financial Services Software Ltd. share price target

OFSS reported inline results with a revenue growth of 3% YoY at Rs 11.9bn (below DE at Rs12.5bn). OPM for the quarter stood at 46% up 360bps YoY (down on QoQ basis), as cost efficiency gets further deep. EBIT and PAT were in line at Rs 5.5bn (DE Rs5.5) and Rs3.9bn (DE 3.9bn). OFSS signed new Licences worth US$13.4mn in line with our estimates ($12mn in Q2FY20) that included 13 new deals across including 4 in developed markets (refer Exhibit 6) and also witnessed 18 go-lives in Q2. Improved deal momentum led by Digital acceleration theme (Banks...

Dart View: Remain positive with a Buy rating Generous dividend (implies 6% yield), improving profitability (up 150bps in FY20), potential acceleration in digital transformation and compelling valuations at 18x on trailing earnings makes a strong case for re-rating of the stock. Encouraged by the large prospects of Core modernization theme, relative stability in BFS spends and its high FCF yields of 6%, we continue to maintain our Buy rating on the stock with a DCF based TP of Rs...

OFSS reported inline operating results for Q4FY20 with a 4% YoY revenue growth at Rs12.6bn against our estimate of Rs12.4bn. EBIT stood at Rs5bn as against our estimate of Rs5.1bn - OPM at 39% It signed new licence worth USD23mn for the quarter; full year wins at US$76mn down 7% on YoY basis. It signed 12 new deals in the quarter (including an OBP deal) and witnessed 13 sites going-live. OPM for Q4 stood at 42.6% down 50bps QoQ higher against our estimate of 41.3%. Product margins improved further to 50.5% (up...

In this Report we present few Analytical Insights by assessing a long period cycle of cash rich debt free listed entities worthy of investment in an economic downturn accentuated by the Pandemic. We are in the midst of a severe Pandemic which is leading to a crisis of confidence on top of a financial crisis and a long period of lockdown only adds more headwinds where one cannot escape gravity as stocks go on a free fall. Our Analytics over a rather long period of 10 years was aimed primarily to spot beaten down stocks which offer attractive risk-reward from a longer term perspective based on their ability to generate positive operating cashflows over longer time frames. For the purpose of this compilation we have considered audited consolidated financials till FY2018-19. All the companies in the list have either zero or negligible debt and are consistent dividend paying entities....

View: Strong licence signings at US$29mn, wins another OBP deal OFSS reported strong Q1FY20 results with a new licence signings of US$29mn in the quarter. It signed 11 new deals in the quarter and included one OBP deal from a leading Australian Bank. The revenues were below our estimate due to weak implementation revenues in the quarter (down 10% on YoY basis) but is expected to pick up given strong 14% growth on TTM basis in its Licence revenue stream. EBIT for the quarter was inline while PAT slip was largely on account of adverse FX....

Oracle Financial Services Software Ltd Q2FY19 results Comment Revenue decreased by 9.78% to Rs. 1213.28 Cr in Q2FY19 when compared to the previous quarter. On the other hand, it increased by 2.0% when compared with Q2FY18.

Revenue grew by 25.1% to Rs. 1344.86 Cr in Q1FY19 when compared to the previous quarter. Oracle Financial Services Software Ltd Q1FY19 results Comment

Revenue rose by 1.51% to Rs. 1075.07 Cr in Q4FY18 when compared to the previous quarter. Oracle Financial Services Software Ltd Q4FY18 results Comment

We upgrade Oracle Financial Services Software (OFSS) to BUY on a 19% upside. The stock's participation in the broader IT sector rally over the last two months has been restricted by muted 3QFY18 results; it has also under-performed global peers over this period. However, given management's commentary of a robust deal pipeline + a seasonally stronger period ahead, we find current levels attractive to play to its structural strengths. We also raise our FY19/FY20E EPS by 6.6%/6.8% on superior margin management. Our revised INR 4,480 TP...

Oracle Financial Services Software Ltd Q3FY18 results comment Revenue decreased by 10.96% to Rs. 1059.12 Cr in Q3FY18 when compared to the previous quarter. Also, it fell by 6.46% when compared with Q3FY17.

Oracle Financial Services Software Ltd Q2FY18 results comment Revenue decreased by 1.18% to Rs. 1189.53 Cr in Q2FY18 when compared to the previous quarter. On the other hand, it increased by 11.66% when compared with Q2FY17.

OFSS delivered lower license fee signings of USD 20 mn in Q1FY18 (Q1FY17: USD 30 mn) in an otherwise seasonally strong quarter (parent Oracle year end: May). The 33% YoY decline was due to delay in closure of some large deals.

Revenue increased by 14.45% to Rs. 1203.76 Cr in Q1FY18 when compared to the previous quarter Revenue increased by 14.45% to Rs. 1203.76 Cr in Q1FY18 when compared to the previous quarter

Revenue fell by 7.11% to Rs. 1051.8 Cr in Q4FY17 when compared to the previous quarter.

Deal pipeline in product business remains healthy especially from US geography.Pipeline has good Tier-1 opportunities.High-growth engines includedigital, analytics, core banking (both for OBP, Flexcube), compliance and integration services.

Revenue grew by 6.29% to Rs. 1132.31 Cr in Q3FY17 when compared to the previous quarter. Also, it grew by 10.52% when compared with Q3FY16.