Latest news with #MakarandPadalkar
Mint
4 days ago
- Business
- Mint
Anand Rathi stock recommendation: This IT services stock may rise over 13% in one month
Shares of Oracle Financial Services Software (OFSS), a leading IT firm catering to the banking and financial services sector, are showing signs of renewed bullish momentum, according to domestic brokerage Anand Rathi. The brokerage has issued a positive outlook on the stock, suggesting it may deliver gains of over 13 percent in the next one month, driven by a solid technical setup and improving trend indicators. Analysts at Anand Rathi note that OFSS has recently established a strong base in the ₹ 8,300–8,750 range and is now trading comfortably above the ₹ 8,800 mark. This price action is being interpreted as a sign of consolidation before a potential breakout. A particularly bullish signal comes from the inside value relationship between the monthly R1 and S1 floor Camarilla pivots—an arrangement often associated with sharp upward moves. Adding to the bullish view, the daily Relative Strength Index (RSI) has reclaimed the 50 level, a threshold commonly viewed as a pivot for upside momentum. The stock's price behaviour, combined with momentum oscillators, suggests the possibility of a sustained rally in the short term. Given the current technical strength, Anand Rathi recommends initiating long positions in OFSS within the ₹ 8,700–8,900 range. The target is set at ₹ 9,800, indicating a potential upside of over 13 percent. To manage risk, the brokerage advises a stop-loss at ₹ 8,300. Despite a subdued May where the IT stock slipped 3 percent, OFSS posted an 11 percent gain in April and rose 1 percent in March. These recent gains follow a challenging start to 2025, with the stock falling 15 percent in February and 29 percent in January. Over the past 12 months, however, the stock has gained nearly 19 percent, reflecting its long-term resilience and potential for further upside. The technical bullishness is underpinned by OFSS's strong financial performance in the March 2025 quarter. The company reported a consolidated net profit of ₹ 643.9 crore, up 19 percent quarter-on-quarter. Revenue from operations grew marginally by 0.06 percent to ₹ 1,716.3 crore. On a year-on-year basis, net profit rose 14.96 percent, while revenue increased 4.50 percent. For the full fiscal year 2024–25, OFSS reported a 7.22 percent rise in consolidated net income to ₹ 2,379.6 crore and a 7.43 percent increase in net sales to ₹ 6,846.8 crore. The board also declared a generous interim dividend of ₹ 265 per share for the year. Commenting on the results, OFSS Managing Director and CEO Makarand Padalkar said, 'Our business model, founded on customer focus, domain specialization, and global diversification, continues to deliver market success.' He noted that the company's License and Cloud Revenues grew 13 percent annually—marking the fourth straight year of double-digit growth. The company also reported an improved operating margin of 44 percent, up 180 basis points over the previous fiscal year. Overall, backed by a strong technical setup and healthy fundamentals, OFSS is showing signs of renewed momentum. With its stock price breaking out of a consolidation zone and key indicators pointing north, traders and investors with a short-term horizon may find the current levels attractive for initiating fresh long positions. As earnings growth and dividend payouts lend further support to sentiment, OFSS appears well-positioned for a potential upside in the weeks ahead. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Business Standard
26-04-2025
- Business
- Business Standard
Oracle Financial Services Software Q4 PAT up 19% QoQ
On a consolidated basis, Oracle Financial Services Software (OFSS) reported 19% rise in net profit to Rs 643.9 crore on 0.06% increase in net sales to Rs 1,716.30 crore in Q4 FY25 over Q3 FY24. On a year-on-year basis, net profit rose 14.96% while net sales increased 4.50% in Q4 FY25. Profit before tax in Q4 FY24 stood at Rs 839 crore, up 6.85% year-on-year and 8.96% quarter-on-quarter. Operating income stood at Rs 757 crore, up 8% YoY and up 8.1% QoQ. During the quarter, the company's products business posted revenue of Rs 1,541 crore, up 3% YoY. Services business posted revenue of Rs 176 crore, up 16% YoY. On a consolidated basis, net income rose 7.22% to Rs 2,379.60 crore while net sales rose 7.43% to Rs 6,846.80 crore in the year ended March 2025 over the year ended March 2024. PBT rose 9.55% to Rs 3,310.90 crore in FY25. Operating income was at Rs 3,007 crore, up 12% YoY. During the year, the company's products business posted revenue of Rs 6,214 crore, up 7%. Services business posted revenue of Rs 632 crore, up 8%. The board declared an interim dividend of Rs 265 per equity share for the financial year 2024-25. "Our business model, founded on the principles of customer focus, domain specialization, and global diversification, continues to deliver market success," said Makarand Padalkar, managing director and chief executive officer, Oracle Financial Services Software. "Our range of applications for financial services demonstrated strong cloud wins across the world. Our License and Cloud Revenues grew 13% annually, posting a double-digit growth for the fourth year in a row. We maintained strong operating performance with the operating margins of 44% for the full year, an improvement of 180 basis points over previous fiscal year. All our lines of business - License, Support and Consulting, delivered strong growth during this fiscal year." "We maintained the focus on delivering robust operating performance on all parameters," said Avadhut Ketkar, Chief Financial Officer, Oracle Financial Services Software. "Revenue in Fiscal 2025 grew by 7% over the very strong growth of Fiscal 2024, and the net margin was 35% - and this was achieved with a modest 1.5% growth in the headcount during the fiscal year. For the quarter ended March 2025, revenue increased by 4% over the corresponding quarter last fiscal and the net income increased by 15%, with a net margin of 38%. Our accounts receivables are healthy, with the Days of Sales Outstanding (DSO) of 58 days." Oracle Financial Services Software is a world leader in providing products and services to the financial services industry and is a majority owned subsidiary of Oracle Corporation.
