With a market capitalization of ₹ 30,248 crores, Oracle Financial Services Software Ltd is a mid-cap company that provides information technology solutions and business processing services to the financial services industry. Its segments include product licences and related activities, IT solutions and consulting services and Business Process Outsourcing Services (BPO-Services).
The Mumbai-based company recently declared an interim dividend of ₹ 225 per share or 4500% of the face value (₹5) of its shares. It has fixed Tuesday, May 9, 2023, as the record date for the purpose of determining the eligibility of the shareholders for receiving the dividend. The dividend will be paid on or before Thursday, May 25, 2023.
At 02:31 PM, the company’s shares were trading at ₹ 3580.00 apiece, up 2.28%. Its share price has risen by 22.90% in the past six months, from ₹ 2912 levels.
The company’s revenue from operations came in at ₹ 1,470.52 crores in the quarter ending March 31, 2023, up 15.17% as compared to ₹ 1,276.78 crores in the corresponding quarter last year. It posted a quarterly net profit of ₹ 479.30 crore in March 2023 down 0.51% from ₹ 481.74 crore in March 2022.
It posted revenue from operations of ₹ 5,698.30 crores for the financial year that ended on March 31, 2023, up 9.13% as compared to ₹ 5221.45 crores reported in the financial year 2021-22. The company’s profit increased by 19.44% to ₹ 763.76 in FY 2022-23, compared to ₹ 639.45 crores in FY 2021-22.
Oracle Financial Services Software has an ideal return on equity of 24.81% and an ideal debt-to-equity ratio of 0.01. Its shares were trading at a price-to-earnings ratio (P/E) of 16.77 which is significantly lower than the industry P/E of 120.54, indicating that the stock might be undervalued as compared to its competitors. It has a high dividend yield of 6.43%.
The company’s promoters hold a 72.98% stake in it, followed by retail investors with 11.27%, foreign institutions with 7.44%, other domestic institutions with 4.27% and mutual funds with 4.04%.
Written by Simran Bafna
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