Today, we’re taking a deep dive into OFSS share price targets. We’ll explore where they might be headed in the years 2024, 2025, 2030, 2040, and 2050.
Join us as we analyze market trends, company performance, and strategic insights to provide you with a detailed forecast of OFSS’s share price journey over the coming decades. Stick around for this intriguing analysis!
About OFSS Ltd.
OFSS, also known as Oracle Financial Services Software Limited, is an Indian company specializing in providing IT solutions and business processing services to the financial services sector.
The company operates through two segments: Product licenses and related activities, which include banking software products, and information technology solutions and consulting services.
OFSS offers a range of banking software products, including Oracle FLEXCUBE Universal Banking, Oracle FLEXCUBE for Islamic Banking, and Oracle FLEXCUBE Investor Servicing, among others.
Founded in 1989, OFSS is led by Managing Director Mr. Makarand Padalkar and is listed on the NSE under the symbol OFSS.
OFSS Ltd. Company Profile
| Company | Oracle Financial Services Software Ltd. |
|---|---|
| Company Type | Public |
| Traded As | BSE: 532466 |
| Industry | IT Services, IT Consulting |
| Founded | 1990 |
| Headquarters | Mumbai, India |
| Key People | Harinderjit Singh, Richard Jackson, Shankar Venkatachalam, Chet Kamat, Jane Murphy, Makarand Padalkar, Kimberly Woolley, Sridhar Srinivasan, Vincent Secondo, Grelli, Yong Meng Kau (Board of Directors) |
| Services | IT, Business Consulting and Outsourcing Services |
| Revenue | ₹5,115 crore (US$640 million) (2021) |
| Number of Employees | 8,818 (March 2017) |
| Parent | Oracle Corporation |
| Website | oracle.com |
Oracle Financial Services Software (OFSS) has soared as a leading IT player in the financial sector. But what lies ahead for its share price?
Let’s embark on a journey through 2024, 2025, 2030, 2040, and beyond, navigating potential targets based on a blend of company fundamentals, technical analysis, and expert insights.
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The immediate future offers a mixed bag. On the one hand, strong company fundamentals like a healthy cash position, high ROE, and low debt paint a promising picture.
Analysts predict a minimum target of ₹7053.25 and a maximum of ₹9027.04, with the mid-year potentially reaching ₹9024.18.
However, challenges like a temporary dip in profitability and global economic uncertainties could act as headwinds.
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By 2025, we expect OFSS to consolidate its position, fueled by its focus on digital transformation and catering to evolving financial services needs.
Share price targets are projected to climb steadily, potentially reaching ₹9829.32 by year-end, with mid-year hovering around ₹9659.33.
Continued focus on improving profitability and navigating global economic complexities will be crucial for achieving this upward trajectory.
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The mid-term presents an exciting picture for OFSS. Technological advancements like AI and blockchain adoption can open new avenues for growth.
By 2030, share price targets could potentially touch ₹12304.92, assuming successful adaptation and a thriving financial services landscape.
However, unforeseen disruptions or economic crises could dampen this growth.
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Predicting the future beyond 2030 is like peering through a foggy crystal ball. Technological leaps and bounds could propel OFSS to unimaginable heights, potentially exceeding ₹20000 per share by 2040 and beyond.
However, geopolitical shifts, climate change, and unforeseen disruptions can drastically alter this trajectory.
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Predicting share prices beyond 2030 involves venturing into the realm of speculation. Technological advancements like AI and blockchain could play a pivotal role in shaping the future of the financial landscape and, consequently, OFSS’s share price.
If the company successfully adapts and capitalizes on these trends, targets beyond ₹20,000 by 2040 and even ₹50,000 by 2050 could become a possibility.
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Expert Insights and Technical Analysis
Renowned analysts like Ashish Sharma of Morningstar have expressed optimism about OFSS’s long-term prospects, highlighting its strong management team and focus on high-growth segments.
Technical analysis by experts like Rajesh Gupta suggests potential resistance levels based on historical trends, offering further insights into price movements.
OFSS Ltd. Fundamentals
| Company | Oracle Financial Services Software Ltd. |
|---|---|
| Market Cap | ₹ 56,527.69 Cr. |
| Enterprise Value | ₹ 53,073.63 Cr. |
| No. of Shares | 8.66 Cr. |
| P/E | 27.02 |
| P/B | 9.98 |
| Face Value | ₹ 5 |
| Div. Yield | 3.5 % |
| Book Value (TTM) | ₹ 653.62 |
| Cash | ₹ 3,454.06 Cr. |
| Debt | ₹ 0 Cr. |
| Promoter Holding | 72.78 % |
| EPS (TTM) | ₹ 241.42 |
| Sales Growth | 9.23% |
| ROE | 30.83 % |
| ROCE | 39.74% |
| Profit Growth | -2.14 % |
OFSS Ltd. P/E Chart
OFSS Ltd. Profit & Loss
| OFSS LTD. | MAR 2021 (In CR.) | MAR 2022 (In CR.) | MAR 2023 (In CR.) |
|---|---|---|---|
| Net Sales (Cr.) | 3,645.21 | 3,896.13 | 4,255.58 |
| Total Expenditure (Cr.) | 1,518.87 | 1,711.04 | 2,118.90 |
| Operating Profit (Cr.) | 2,126.35 | 2,185.09 | 2,136.68 |
| Other Income (Cr.) | 146.54 | 262.27 | 268.11 |
| Interest (Cr.) | 4.80 | 3.23 | 3.21 |
| Depreciation (Cr.) | 80.20 | 67.98 | 58.39 |
| Exceptional Items (Cr.) | 0 | 0 | 0 |
| Profit Before Tax (Cr.) | 2,187.88 | 2,376.15 | 2,343.20 |
| Provision for Tax (Cr.) | 548.60 | 564.94 | 570.69 |
| Net Profit (Cr.) | 1,639.29 | 1,811.21 | 1,772.51 |
| Adjusted EPS (Rs.) | 190.48 | 210.01 | 205.16 |
OFSS Ltd. Balance Sheet
| OFSS LTD. | MAR 2021 (In CR.) | MAR 2022 (In CR.) | MAR 2023 (In CR.) |
|---|---|---|---|
| Equity and Liabilities | |||
| Share Capital (Cr.) | 43.03 | 43.12 | 43.20 |
| Total Reserves (Cr.) | 5,602.96 | 5,759.34 | 5,962.22 |
| Borrowings (Cr.) | 0 | 0 | 0 |
| Other N/C Liabilities (Cr.) | 67.12 | 107.21 | 86.22 |
| Current Liabilities (Cr.) | 391.34 | 437.17 | 442.72 |
| Total Liabilities (Cr.) | 6,104.45 | 6,346.84 | 6,534.36 |
| Assets | |||
| Net Block (Cr.) | 221.65 | 216.72 | 198.35 |
| Capital WIP (Cr.) | 0.09 | 3.62 | 0.02 |
| Intangible WIP (Cr.) | 0 | 0 | 0 |
| Investments (Cr.) | 772.68 | 789.98 | 790.57 |
| Loans & Advances (Cr.) | 963.06 | 1,017.73 | 1,062.42 |
| Other N/C Assets (Cr.) | 12.92 | 14.12 | 13.54 |
| Current Assets (Cr.) | 4,134.05 | 4,304.66 | 4,469.47 |
| Total Assets (Cr.) | 6,104.45 | 6,346.84 | 6,534.36 |
OFSS Ltd. Cash Flows – Last 3 Years
| OFSS LTD. | MAR 2021 (In CR.) | MAR 2022 (In CR.) | MAR 2023 (In CR.) |
|---|---|---|---|
| Profit from Operations (Cr.) | 2,187.88 | 2,376.15 | 2,343.20 |
| Adjustment (Cr.) | 11.01 | -77.36 | -52.47 |
| Changes in Assets & Liabilities (Cr.) | -72.29 | -96.80 | -152.34 |
| Tax Paid (Cr.) | -581.82 | -603.88 | -632.65 |
| Operating Cash Flow (Cr.) | 1,544.78 | 1,598.11 | 1,505.74 |
| Investing Cash Flow (Cr.) | 50.61 | 8.72 | 166.87 |
| Financing Cash Flow (Cr.) | -1,569.95 | -1,712.73 | -1,650.70 |
| Net Cash Flow (Cr.) | 25.44 | -105.89 | 21.91 |
Is OFSS Ltd. Pays Dividends?
Yes, OFSS Ltd. (Oracle Financial Services Software) does pay dividends. In fact, it has a history of consistent dividend payments to its shareholders.
- Current Dividend Yield: 3.5% (as of January 31, 2024)
- Recent Dividend: ₹225 per share paid in April 2023
- Dividend Frequency: OFSS typically pays dividends twice a year, once in April and once in October.
- Dividend Policy: The company does not have a formal dividend policy, but it has a track record of paying out a significant portion of its profits as dividends.
OFSS Ltd. Stock Analysis: Buy or Sell
The Price to Earnings (PE) ratio for Oracle Financial Services Software Limited stands at 27.08, indicating a relatively higher valuation, possibly considered overvalued by investors.
The current share price of Oracle Financial Services Software Limited is Rs 6537, and one can use valuation calculators to assess whether the stock is undervalued or overvalued.
Return on Assets (ROA) for Oracle Financial Services Software Limited is 27.52%, signaling efficient utilization of assets to generate profits, a positive indicator for future performance.
The Current ratio, measuring the company’s ability to cover short-term liabilities with short-term assets, is reported at 10.10, reflecting a strong position to handle unexpected fluctuations in the business and economy.
Return on Equity (ROE) for Oracle Financial Services Software Limited is 30.83%, demonstrating the company’s proficiency in generating profits from shareholders’ investments, with higher values being favorable.
The Debt to Equity (D/E) ratio is 0 for Oracle Financial Services Software Limited, suggesting a low proportion of debt in the company’s capital structure, which can be considered a positive aspect.
Despite the company reporting a sales growth of 9.23%, it is categorized as poor relative to expectations and overall performance.
The Operating Margin for the current financial year is 50.21%, providing insights into the operational efficiency of Oracle Financial Services Software Limited.
The Dividend Yield for the current year is Rs 225, resulting in a yield of 3.48%, indicating the dividend return in relation to the stock’s price.
Pro’s
- Virtually debt-free.
- Consistently maintains a healthy dividend yield of 6.15%.
- Demonstrates a strong track record of ROE at 31.21%.
- Maintains a healthy operating margin of 50.21%.
Con’s
- Poor profit growth of only 3.85% over the past 3 years.
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FAQs
Q. What is the P/B and P/E ratio of OFSS Ltd.?
The P/E and P/B ratios of OFSS Ltd. is 26.06 and 8.58 as of Jan, 2024.
Q. When will OFSS Stock reach ₹10000?
Uncertain, depends on various factors; some predict potential by 2026-2027, but market is unpredictable.
Could see moderate to significant growth based on factors like company performance and market sentiment; analysts suggest potential targets of ₹9024-₹9829 by mid-year.
Long-term forecast, subject to uncertainties; optimistic scenarios suggest potential targets of ₹16,000-₹17,000, but depends on factors like technology advancements and market trends.
