OFSS - Investment Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Investment Rating: 4.2

📊 Fundamental & Technical Analysis

✅ Strengths

ROE (29.3%) & ROCE (40.6%): Exceptional capital efficiency, indicating strong profitability and management effectiveness.

Dividend Yield (3.06%): Attractive for income-focused investors.

Debt-to-Equity (0.01): Virtually debt-free, reducing financial risk.

EPS (₹277): Solid earnings per share, supporting valuation.

Industry PE (50.9) vs Stock PE (31.3): Trading below industry average, suggesting relative undervaluation.

⚠️ Weaknesses

PEG Ratio (3.91): Indicates overvaluation relative to growth.

Price Trend: RSI at 43 and MACD negative suggest bearish momentum.

FII/DII Holding Decline: Slight reduction in institutional confidence.

📈 Entry Price Zone

Given the current price of ₹8,664 and technical indicators

Ideal Entry Zone: ₹7,200–₹8,000

This range is closer to the 52-week low and offers a better margin of safety.

RSI and MACD suggest further downside is possible before reversal.

🧭 Long-Term Investment Outlook

OFSS is a strong long-term candidate due to

High ROE/ROCE

Consistent profitability (PAT Qtr: ₹642 Cr)

Low debt and strong dividend payout

Strategic positioning in financial IT services

Price Targets

2025: ₹9,482.25

2027: ₹15,155.55

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🛣️ Exit Strategy (If Already Holding)

If Bought Above ₹10,000

Hold until price revisits ₹12,000–₹13,000 zone.

Reassess based on earnings growth and macro conditions.

If Bought Below ₹8,000

Hold for 3–5 years minimum.

Consider partial profit booking near ₹12,000–₹13,000.

Reinvest dividends or use them to average down if price dips.

Monitoring Metrics

PEG ratio trend (should ideally fall below 2.5)

ROE/ROCE consistency

Institutional holding patterns

Quarterly PAT growth

Would you like a comparison with similar IT stocks like Infosys or TCS to benchmark OFSS’s long-term potential?

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moneylaid.com

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dailybulls.in

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