Excellent call on OFSS. What have been the recent triggers behind improved financial performance and arre the se nos sustainable ?
ofss gm Sonny singh interview
very rare you can find details about OFSS strategy
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OFSS was like ITC, 2 years back.
There were lot of pessimistic views from Analysts and that was the time to invest. When Dividend Yield of any stock goes above 5%-6% which was the case with OFSS 2 years back, Downside risk is generally low and upside depends on its earnings performance.
OFSS now looks slightly overvalued as some of the EPS growth in Licensing its cloud based products may sustain or may not sustain.
A usual, I may be wrong in my analysis and understanding.
Strong numbers from OFSS
Q4 Revenue up 12% YoY and Profits up 17% up year on year.
Dividend Rs 240
Now this is not blockbuster result like last Q but this is sill best in industry and stock is still reasonably priced considering sticky, geo-diversified, high margin, B2B, only listed blue blooded software products company.
Some analyst may have built unreasonable expectation based on last Q cloud bookings and we may see some knee jerk reaction.
Another point to note is that unlike IT services there is no disruption to their business from AI. Infact AI implementation within their product for business processes will lead to premiumization or add-on modules leading to higher license pricing.
Dolat raises target price to 7900
Stock rallied due to blockbuster Q3 results.
In today’s world some insider trade can not be ruled out.
Volatility is due people inability to understand company, transition to SaaS model and its unpredictability, product new orders which are capex in nature thus don’t come at regular intervals.
I remember a very famous investor who was mentioning on TV that he bought it for IoT play.
This is not QoQ stock. AT best analyzed from Yearly perspective and how core banking is moving.