OFSS - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 05 Nov 25, 7:43 am

Fundamental Rating: 4.6

Html

Copy

📊 Fundamental Analysis Report

• Stock Code: OFSS
• Market Cap: ₹74,062 Cr
• Current Price: ₹8,514
• 52W High/Low: ₹13,220 / ₹7,038
• EPS: ₹388
• Stock P/E: 22.0 vs Industry P/E: 37.7
• PEG Ratio: 0.97 ✅ (Fairly Valued)
• Book Value: ₹732 | P/B Ratio: ~11.6 ❗
• ROE: 48.8% | ROCE: 62.5% 🔥
• Debt to Equity: 0.00 🟢 (Debt-Free)
• Dividend Yield: 3.11% 💰
• Quarterly PAT: ₹463 Cr (↓6.94%)
• RSI: 41.4 | MACD: -80.3 📉

✅ Positive

• Outstanding return metrics (ROE & ROCE) reflect superior capital efficiency.
• Zero debt enhances financial resilience and lowers risk exposure.
• Attractive dividend yield supports income-focused investors.
• PEG ratio below 1 suggests fair valuation with growth potential.

⚠️ Limitation

• High P/B ratio (~11.6) may indicate overvaluation relative to book value.
• Sequential decline in quarterly profit (↓6.94%) could signal short-term headwinds.
• Bearish technical indicators: MACD negative, RSI below 50, price below DMA 50 & 200.

📉 Company Negative News

• Q4 PAT dropped from ₹587 Cr to ₹463 Cr, reflecting a 21% sequential decline.

📈 Company Positive News

• Announced ₹265/share dividend, reinforcing shareholder value.
• Strong global presence across banking and insurance tech, with AI and cloud integration.

🏦 Industry

• OFSS operates in the financial software sector, serving banks and insurers globally.
• Industry P/E of 37.7 suggests room for valuation expansion.
• Digital transformation and fintech adoption support long-term growth.

🧭 Conclusion

• Entry Zone: ₹7,200–₹7,800 (near support and RSI oversold)
• Long-Term View: Strong fundamentals, global footprint, and tech-driven model make OFSS a solid long-term hold.

Sources: Based on latest financial metrics and industry trends.