Top IT Stock Signed Deals Of $26.2mn In Q1, Buy Stock With Rs. 3460 Target Price: Brokerage Says

Leading brokerage firm Ashika is suggesting investors to buy the stock of Oracle Financial Services. The stock is offering around a 6.34% dividend yield now.

Stock To Buy: Target Price

The Current Market Price (CMP) of Oracle Financial Services is Rs. 2,995. Ashika has estimated a Target Price for the stock at Rs. 3,460. This stock has the potential to give a 15.52% return, in the upcoming 1 year. It is a large-cap stock with a market capitalization of around Rs. 25,884 crore.

Stock Outlook
Current Market Price (CMP)	Rs. 2,995
Target Price	Rs. 3,460
Potential 1 year return	15.52%
52 week high share price	Rs. 5,145
52 week low share price	Rs. 2,909.90

Stock Valuation

According to the brokerage firm, "OFSS is a global leader in CBS business solutions. Unmatched access, superior technology and integrated offerings continue to support it a preferred vendor in the segment. Further, superior pricing and brand appeal would drive stronger earnings growth, going forward. We recommend our investors to Buy the scrip with a target of Rs. 3,460 from long-term perspective. At current market price, the scrip is valued at P/E multiple of 11.0x on Bloomberg consensus EPS of Rs. 271.2."

Core Banking Solution (CBS) segment

OFSS is the global leader in providing CBS. It has balanced product portfolio, which is likely to benefit from improved spending in BFSI segment and increased thrust on efficient compliance system. Unmatched access, superior technology and integrated offering continue to make OFSS a preferred vendor in the segment. Its rich core banking platform, which offers smooth API integration and scalable digital banking solution, are used by above 1,400 clients in more than 160 markets.

Healthy Deal Pipeline

OFSS maintained a strong winning momentum in 1QFY23, as it signed license deals amounting $26.2mn during the quarter. Its product capability offers multiple deployment choices to help the customers to have a competitive edge. During 1QFY23, 15 customers went live on its software products. In FY22, OFSS announced 68 new unique deals compared to 58 deals in FY21. In FY22, OFSS signed the largest ever SaaS-based multiyear deal for Tier-IUS banks.

Company Portfolio

Oracle Financial Services Software Ltd. (OFSS), a subsidiary of Oracle Corporation, is an IT solution provider to the banking industry. It offers a feature and functionality of rich core-banking platform, offering smooth API integration, scalable digital banking solution, which is used by above 1,400 clients in more than 160 markets. OFSS provides a wide range of technology solutions covering Retail Banking, Corporate Banking, and Payments. Over the years, it has established an extensive global presence across leading markets through its sales and marketing network.

Disclaimer

The above stock was picked from the brokerage report of Ashika. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.