OFSS - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.5

📊 Core Financials Analysis

Profitability

ROE (48.8%) and ROCE (62.5%) are outstanding — indicating superior capital efficiency.

EPS of ₹392 reflects strong earnings power.

Quarterly PAT dropped from ₹1,836 Cr to ₹587 Cr — likely due to one-off gains in the previous quarter, but still healthy.

Balance Sheet Strength

Debt-to-equity: 0.00 — zero debt is a major plus.

Dividend Yield: 2.89% — attractive for long-term income investors.

Cash Flow & Stability

While cash flow data isn’t provided, the high ROCE and zero debt imply strong operational cash generation.

📉 Valuation Indicators

Metric Value Interpretation

P/E Ratio 23.4 Below industry average (34.0) — undervalued

P/B Ratio ~10.5 High, but justified by strong ROE

PEG Ratio 1.03 Fairly valued — growth aligns with price

Intrinsic Value ~₹8,800–₹9,200 (est.) Current price near fair value zone

🧠 Business Model & Competitive Edge

Parent Company: Oracle Corp — a global leader in cloud and AI infrastructure.

OFSS Focus: Financial software for banks (e.g., FLEXCUBE), with high switching costs and long-term contracts.

Moat: Deep integration with Oracle’s ecosystem, global clientele, and mission-critical products.

Recent Buzz: Oracle’s AI cloud surge lifted OFSS sentiment, but OFSS clarified limited direct impact

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📈 Technical & Sentiment Overview

RSI: 63.3 — moderately bullish, not overheated.

MACD: Positive — confirms upward momentum.

DMA 50 & 200: Price is above both — trend remains intact.

Volume Dip: Current volume below 1-week average — suggests cooling off after recent rally.

💡 Entry Zone & Long-Term Guidance

Suggested Entry Range: ₹8,700–₹9,000 — near DMA 200 and intrinsic value.

Holding Strategy

Ideal for long-term investors seeking high-quality tech exposure.

Strong fundamentals, zero debt, and Oracle’s global tailwinds make it a resilient pick.

Dividend yield adds income stability.

If you’re building a portfolio with durable, high-ROE compounders, OFSS deserves a spot. Want a peer comparison or sector outlook next?

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sensexnifty.com

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www.analyticsinsight.net

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