Fundamental Analysis

ORACLE FINANCIAL SERVICES SOFTWARE LTD. 

Ticker : 532466
BUY : Rs 2960.90
Target : Rs 3260

Oracle Financial Services Software Limited (OFSSL) provides IT solutions to the financial services industry. OFSSL provides a wide range of technology solutions covering retail banking, corporate banking, and payments. On a consolidated quarterly front, its net sales grew by 4.87 per cent for the quarter ended June 2020 to Rs 1,337.26 crore from Rs 1,275.10 crore during the same period in the previous fiscal year. The company reported an operating profit of Rs 737.84 crore in Q1FY21, up by 13.36 per cent from Rs 650.86 crore reported in Q1FY20. Similarly, the net profit increased by 27.14 per cent from Rs 377.39 crore in Q1FY20 to Rs 479.79 crore in Q1FY21. Cloud adoption and application programming interface (API) too are gaining popularity in the financial services industry. OFSSL has about 1,600 API interfaces with its product offerings. These capabilities will enable them to further expand their existing market and also gain a new market. Thus, we recommend a BUY.