Please refer to important disclosures at the end of this report
1
Oracle Financial Services Software Limited (OFSS) is a subsidiary of Oracle
Corporation. It is an IT solution provider to the banking industry which caters to
the needs of corporate, retail, investment banking, treasury operations, and data
warehousing. OFSS is now finding increased acceptance of its products like
Analytics and Oracle Banking Platform (OBP). Demand is led by compliance and
regulatory spends by clients as well as investments towards new offerings to thei
r
customers. OFSS will also provide a good entry to play the strong deal pipeline
and also immunity from potential regulatory risks. Also, product centricity o
f
business makes OFSS a better play on ` depreciation than the IT services players.
The company has performed well and has reported superior operating margins
(EBIDTA at 35%+) over the last 5 year and generating average `500cr+ cash
flow from operation. The company is debt free company and had been paying a
hefty dividend payout with good Div yield of 2.7%. The company has reported a
healthy return on equity (RoE) of 21% for the last 3 years. Hence Buy.
BUY
CMP `3,894
Stock Info
Sector
Beta
Bloomberg Code
Shareholding Pattern (%)
Promoters 74.1
MF / Banks / Indian Fls 4.4
FII / NRIs / OCBs 15.2
Indian Public / Others 6.3
Abs. (%) 3m 1yr 3yr
Sensex 8.2 17.6 32.0
Oracle Fin. Ser. 24.7 14.9 30.8
0.5
Reuters Code ORCL.BO
5
BSE Sensex 28,946
Nifty 8,935
Face Value (
`
)
IT
Market Cap (
`
cr) 33,512
52 Week High / Low 4089/2796
Avg. Daily Volume 2,918
Vaibhav Agrawal
022 – 3935 7800 Ext: 6808
Oracle Financial Services Software
Others | I
T
March 14, 2017
Oracle Financial Services Software | IT
March 14, 2017
2
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
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Disclosure of Interest Statement Oracle Financial Services Software
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
over 12 months investment
p
eriod
)
: Reduce
(
-5% to -15%
Sell
(
< -15
)