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Last Updated on: 04 March, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Oracle Financial Services Software Ltd

About the Company - Oracle Financial Services Software Ltd

Oracle Financial Services Software Ltd. is a Public Limited Listed company incorporated on 27/09/1989 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L72200MH1989PLC053666 and registration number is 053666. Currently Company is involved in the business activities of Writing , modifying, testing of computer program to meet the needs of a particular client excluding web-page designing. Company’s Total Operating Revenue is Rs. 3896.13 Cr. and Equity Capital is Rs. 43.12 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
IT Consulting & SoftwareOracle Park, Off. Western Express Highway, Mumbai Maharashtra 400063investors-vp-ofss_in_grp@oracle.com
https://www.oracle.com/financialservices
Management
NamePosition Held
Mr. S VenkatachalamChairman
Mr. Chaitanya KamatManaging Director & CEO
Mr. Makarand PadalkarWholeTime Director & CFO
Ms. Kimberly WoolleyDirector
Mr. Harinderjit SinghDirector
Mr. Richard JacksonDirector
Mr. Sridhar SrinivasanDirector
Ms. Jane MurphyDirector
Mr. Yong Meng KauDirector
Mr. Vincent Secondo GrelliDirector

Oracle Financial Services Software Ltd. Share Price Update

Share PriceValue
Today₹7,207.70
Previous Day₹7,195.95

Basic Stock Data of Oracle Financial Services Software Ltd

Market Cap 67,247 Cr.
Current Price 7,760
High / Low8,198/3,150
Stock P/E31.4
Book Value 750
Dividend Yield2.90 %
ROCE35.1 %
ROE24.8 %
Face Value 5.00

Data Source: screener.in

Competitors of Oracle Financial Services Software Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Infosys Ltd 6,87,454 Cr. 1,6561,733/1,18528.2 1932.05 %40.5 %31.8 % 5.00
Droneacharya Aerial Innovations Ltd 405 Cr. 169221/11157.8 29.30.00 %11.6 %8.45 % 10.0
Nucleus Software Exports Ltd 3,977 Cr. 1,4861,830/53419.2 2570.67 %27.1 %20.3 % 10.0
Adjia Technologies Ltd 3.18 Cr. 36.138.0/24.5 24.0%4.03 %4.12 %
Avance Technologies Ltd 309 Cr. 1.561.56/0.04114 1.880.00 %%% 1.00
Industry Average138,429.64 Cr669.7343.84101.040.54%16.65%12.93%5.20

Oracle Financial Services Software Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales1,1971,2381,2111,3971,2811,2661,2771,4021,3761,4491,4711,4621,444
Expenses620627621665651682725755809843820841886
Operating Profit578611590733630585552647567606651621558
OPM %48%49%49%52%49%46%43%46%41%42%44%42%39%
Other Income182344302736424446416110165
Interest555-0534-7578-38
Depreciation27262425252420202221191819
Profit before tax563603605738627593570679586620686707596
Tax %30%29%24%29%29%27%15%28%32%29%30%29%30%
Net Profit392430460524448435482492398437479501417
EPS in Rs45.5949.9453.4960.8651.9350.4955.8656.9546.0550.6355.4857.9248.20

Oracle Financial Services Software Ltd Quarterly Chart

Oracle Financial Services Software Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales3,1473,4743,7413,9054,1314,4274,5274,9594,8614,9845,2215,6985,827
Expenses2,0352,2552,3422,3542,5202,6932,7162,8142,6332,5152,7233,2273,390
Operating Profit1,1111,2191,3991,5511,6121,7341,8112,1452,2292,4692,4992,4712,437
OPM %35%35%37%40%39%39%40%43%46%50%48%43%42%
Other Income3524606743481899391176177132134192268
Interest000000004719121319
Depreciation4766726853706154106104938177
Profit before tax1,4171,6132,0011,8311,7481,7571,8402,2672,2522,4772,5282,5702,609
Tax %36%33%32%35%40%33%33%39%35%29%25%30%
Net Profit9091,0751,3591,1921,0491,1851,2371,3861,4621,7621,8891,8061,835
EPS in Rs108.28127.89161.55140.91123.61139.28144.82161.57170.26204.72219.00209.05212.23
Dividend Payout %0%0%0%472%81%122%90%0%106%98%87%108%

Oracle Financial Services Software Ltd Profit & Loss Yearly Chart

Oracle Financial Services Software Ltd Growth

Compounded Sales Growth
10 Years:5%
5 Years:5%
3 Years:5%
TTM:13%
Compounded Profit Growth
10 Years:5%
5 Years:8%
3 Years:7%
TTM:18%
Stock Price CAGR
10 Years:9%
5 Years:17%
3 Years:34%
1 Year:142%
Return on Equity
10 Years:25%
5 Years:26%
3 Years:26%
Last Year:25%

Oracle Financial Services Software Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital42424242424243434343434343
Reserves6,2767,3648,7353,4024,6323,2224,6654,8946,5276,8067,0577,4166,453
Borrowings0000000011570836954
Other Liabilities8911,0069412,8251,0112,7561,2251,1921,2361,2341,4091,5901,741
Total Liabilities7,2098,4139,7186,2695,6856,0205,9336,1287,9208,1538,5929,1198,292
Fixed Assets981994954911865870837864963884871847829
CWIP5413130513000410
Investments11001000000000
Other Assets6,1727,4048,7525,3574,8055,1505,0935,2646,9577,2687,7178,2717,462
Total Assets7,2098,4139,7186,2695,6856,0205,9336,1287,9208,1538,5929,1198,292

Oracle Financial Services Software Ltd Reserves and Borrowings Chart

Oracle Financial Services Software Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 8211,1346731,0607121,1211,1571,3801,5221,9201,8561,758
Cash from Investing Activity -644-1,160-6723,7011,0181,823-1,313220-1,29934-138267
Cash from Financing Activity 61514-4,690-1,776-931-1,630-1,250-47-1,590-1,733-1,665
Net Cash Flow183-111572-452,013-1,785350175363-15360

Oracle Financial Services Software Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days1047666567359817069596569
Inventory Days
Days Payable
Cash Conversion Cycle1047666567359817069596569
Working Capital Days993563-15141-112413243383941
ROCE %25%24%25%30%44%46%46%47%40%37%36%35%

Oracle Financial Services Software Ltd Financial Efficiency Indicators Chart

Oracle Financial Services Software Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters73.26%73.21%73.15%73.12%73.11%73.02%73.00%72.99%72.98%72.90%72.81%72.78%
FIIs10.61%10.02%8.53%8.25%7.98%7.45%7.22%6.75%7.44%7.79%7.74%6.89%
DIIs8.01%8.34%8.93%9.28%9.30%9.43%9.36%9.17%8.53%8.46%8.57%9.48%
Public8.11%8.42%9.38%9.34%9.61%10.10%10.41%11.09%11.06%10.84%10.89%10.85%
No. of Shareholders48,57158,40275,50285,20799,0081,09,7031,19,3661,22,1831,15,9801,07,1001,01,79099,707

Oracle Financial Services Software Ltd Shareholding Pattern Chart

No. of Oracle Financial Services Software Ltd Shareholders

Oracle Financial Services Software Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
HDFC Mid-Cap Opportunities Fund - Regular Plan11766360.91471.95
Parag Parikh Flexi Cap Fund4176790.35167.53
Tata Equity P/E Fund - Regular Plan2038671.2681.77
Tata Equity P/E Fund - Regular Plan - Trigger Option A 5%2038671.2681.77
UTI MNC Fund1901462.8976.27
Tata Large & Mid Cap Fund - Regular Plan1800001.2672.2
Tata Large & Mid Cap Fund - Regular Plan1800001.2672.2
Kotak Equity Arbitrage Fund - Regular Plan1602000.264.26
NJ Balanced Advantage Fund1157431.2546.42
UTI Large & Mid Cap Fund1114352.0544.7

Oracle Financial Services Software Ltd ROCE Trend

Oracle Financial Services Software Ltd EPS Trend

Oracle Financial Services Software Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue5.005.005.005.005.00
Basic EPS (Rs.)209.14219.19204.90170.38161.94
Diluted EPS (Rs.)208.25218.04203.99169.66161.11
Cash EPS (Rs.)218.38229.76216.82182.65167.88
Book Value[Excl.RevalReserv]/Share (Rs.)863.32823.19795.79764.97575.67
Book Value[Incl.RevalReserv]/Share (Rs.)863.32823.19795.79764.97575.67
Revenue From Operations / Share (Rs.)678.90605.41579.11566.05578.28
PBDIT / Share (Rs.)308.25305.32302.17280.16270.63
PBIT / Share (Rs.)298.91294.56290.08267.77264.37
PBT / Share (Rs.)297.45293.15287.85262.26264.37
Net Profit / Share (Rs.)209.05219.00204.72170.26161.62
NP After MI And SOA / Share (Rs.)209.05219.00204.72170.26161.62
PBDIT Margin (%)45.4050.4352.1749.4946.79
PBIT Margin (%)44.0248.6550.0947.3045.71
PBT Margin (%)43.8148.4249.7046.3345.71
Net Profit Margin (%)30.7936.1735.3530.0727.94
NP After MI And SOA Margin (%)30.7936.1735.3530.0727.94
Return on Networth / Equity (%)24.2126.6025.7222.2528.07
Return on Capital Employeed (%)31.5632.7933.5932.5044.71
Return On Assets (%)19.4721.6221.2618.2222.60
Asset Turnover Ratio (%)0.570.520.510.570.69
Current Ratio (X)6.556.727.356.324.07
Quick Ratio (X)6.556.727.356.324.07
Dividend Payout Ratio (NP) (%)0.0091.1887.810.0080.27
Dividend Payout Ratio (CP) (%)0.0086.9182.910.0077.28
Earning Retention Ratio (%)0.008.8212.190.0019.73
Cash Earning Retention Ratio (%)0.0013.0917.090.0022.72
Interest Coverage Ratio (X)210.45215.82135.9550.800.00
Interest Coverage Ratio (Post Tax) (X)143.72155.8193.1031.870.00
Enterprise Value (Cr.)22731.4425853.1922617.1012957.8726219.67
EV / Net Operating Revenue (X)3.884.954.542.675.29
EV / EBITDA (X)8.549.828.705.3911.30
MarketCap / Net Operating Revenue (X)4.815.935.523.595.86
Retention Ratios (%)0.008.8112.180.0019.72
Price / BV (X)3.784.364.022.665.88
Price / Net Operating Revenue (X)4.815.935.523.595.86
EarningsYield0.060.060.060.080.04

Oracle Financial Services Software Ltd Profitability Ratios (%)

Oracle Financial Services Software Ltd Liquidity Ratios

Oracle Financial Services Software Ltd Liquidity Ratios (%)

Oracle Financial Services Software Ltd Interest Coverage Ratios (%)

Oracle Financial Services Software Ltd Valuation Ratios

Fair Value / Intrinsic Value of Oracle Financial Services Software Ltd

Fair Value: ₹6009.77

The stock is overvalued by 22.55% compared to the current price ₹7760

*Investments are subject to market risks

Strength and Weakness of Oracle Financial Services Software Ltd

StrengthWeakness
  1. The stock has a high average ROCE of 36.25%, which is a positive sign.
  2. The stock has a low average Working Capital Days of 17.42, which is a positive sign.
  3. The company has higher reserves (5,957.62 cr) compared to borrowings (30.08 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (3.92 cr) and profit (1.54 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 283.14 and average Dividend Yield of 47.15%.
  2. The stock has a high average Cash Conversion Cycle of 70.58, which may not be favorable.

Should I Buy Oracle Financial Services Software Ltd Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Oracle Financial Services Software Ltd:
    1. Net Profit Margin: 30.79%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 31.56% (Industry Average ROCE: 15.35%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. Interest Coverage Ratio (Post Tax): 143.72
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    4. Quick Ratio: 6.55
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    5. ✓ Stock P/E: 32.0 (Industry average Stock P/E: 185.32)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    6. ✗ Total Debt / Equity: N/A
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Oracle Financial Services Software Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE