Highest Ever Dividend of Rs 240: Record Date On 7th May; Buy The IT Stock To Be Eligible?

As the record date approaches for the highest-ever dividend issued by the IT company's board of directors, Oracle Financial Services Software shares closed Friday trading 0.21% higher at Rs 7781.05 per share. The IT stock reached a 52-week-high of Rs 9,021.40 on (01/04/2024) and a 52-week-low of Rs 3,418.00 on (09/05/2023). Let's find out if stock market investors should consider purchasing Oracle Financial Services Software Ltd. stock in order to be eligible for the approaching dividend distribution of Rs 240.00 per share, which is scheduled to be paid on May 7, 2024.

Oracle Financial Services Software Dividend

"We are pleased to inform you that the Board of Directors of the Company at its Meeting held on April 24, 2024 has declared an interim dividend of Rs 240 per equity share of face value of Rs 5/- each for the Financial Year 2023-24. The said dividend will be payable to those shareholders whose names appear in the Register of Members of the Company and as beneficial owners in the Depositories as at the close of business hours on Tuesday, May 7, 2024 ("Record Date"). Shareholders holding shares in electronic mode and whose bank accounts are registered with the Depository Participant shall receive electronic credit of dividend," said the IT company in a regulatory filing.

Oracle Financial Services Software Q4 Results

Revenue for the fiscal year 2024 was Rs. 6,373 crore on a consolidated basis, which represents a 12% increase over the fiscal year 2022-2023. Operating income climbed by 13% to Rs. 2,680 crore in the fiscal year 2024 from the same period last year. The net income for the fiscal year 2024 jumped by 23% to Rs. 2,219 crore from the same period in the previous year. Revenue for the quarter was Rs. 1,642 crore on a consolidated basis, up 12% from the same quarter of FY23. Operating income climbed 13% YoY to Rs. 703 crore for the quarter under review. The quarter's net income was Rs. 560 crore, a 17% increase over Q4FY23.

The products division reported a 12% increase in revenue, or Rs. 1,491 crore, and a 13% growth in operating income, or Rs. 718 crore, on a consolidated basis for the quarter ended March 31, 2024. In the same time frame, the services division reported revenue of Rs. 151 crore, up 13% from the previous year, and operating income of Rs. 44 crore, up 47%. The company reported a net profit of Rs. 560.12 crore in the March 2024 quarter up 16.86% from Rs. 479.30 crore in the March 2023 quarter. EBITDA reached Rs. 858.07 crore in Q4FY24 up 20.49% from Rs. 712.13 crore in Q4FY23.

Oracle Financial Services Software Share Price Target

"Oracle Financial Services Limited is an Indian subsidiary of the Oracle Corporation that provides financial and insurance technology solutions. The stock has recently generated a buzz in the market by declaring a cash interim dividend of Rs. 240 per share, with its ex-date scheduled for May 7, 2024. Notably, the mid-cap company with 67,264 units has delivered 113% returns in a year, making it quite lucrative for many investors and traders. It has also declared a dividend of 3.08% against the sector yield of just 1.96%, demonstrating its strong financial standings. Meanwhile, the stock's PE ratio which stands at 30 is slightly over the sector PE of 29.80. Based on the current market momentum, the stock is in the overbought zone for short-term investment and might experience a pullback soon. Regardless, individuals looking to explore it under the current situation may consider buying at the price range of Rs. 6050-6250, for a target of Rs. 7500-12000. I recommended holding it for 50-380 days to make the most of it while adhering strictly to the stop loss at Rs. 5400 to protect gains," said V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT).

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.