Oracle Financial Services

@Deenar_Toraskar …This was really helpful. OFSS is really far behind other CBS product. Please post more if you have more info. Thanks

It is not that they don’t sell, they have stopped participating in IBSi Sales League. They continue to be number two behind Temenos.

Oracle Banking suite is old iFlex and it is under OFSS. Read AR for better clarity.

Key attractions (already discussed in thread):
They continue to be a play on global financials on not dependent only on US unlike other companies. US accounts for only 25% revenue.

Very high margin product play unlike other service plays.

India has global leadership in banking products.

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@nav_1996 I believe @Deenar_Toraskar is talking about Oracle Banking Platform

Oracle Banking Platform was implemented by some big bank in Australia/NZ…not sure about the bank

Oracle Banking Platform | Oracle

Also i found this interesting article

Please check AR. All products are listed including Oracle Banking Platform.

Obviously for branding purpose they will use “Oracle” rather than OFSS. They are branding towards customers and not shareholders (we are expected to know our company :slight_smile:

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Interesting.

OFSS invested in below

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Looks to be on the way to delisting - the way stock price getting hammered weak hands go out accumulation happening by smart operators! Performance of the Company from the last one year the management is least bothered about results!

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@nav_1996 Thank you,

It is not that they don’t sell, they have stopped participating in IBSi Sales League. They continue to be number two behind Temenos.

Ok, that explains the IBSi numbers. The IBSi Sales League table relies on vendors to report deal wins. It seems they have new customers

Oracle Banking suite is old iFlex and it is under OFSS. Read AR for better clarity.

Ok, have heard different versions. It would be good to get clarity. Assuming this is true for now. The good part is Flexcube is still in the top quartile on all the analyst quadrants (Gartner, Forrester, etc.)

They continue to be a play on global financials on not dependent only on US unlike other companies. US accounts for only 25% revenue. Very high margin product play unlike other service plays.

But zero growth. Revenues in INR have grown at the rate of 4.63 % (CAGR) over the last 9 years, EPS by 6.46% (CAGR) in the past 9 years. If you look at constant currency terms they are taking in less every year. Looks like more customers are leaving/downsizing than new customers are being acquired.

Personally feel here is maybe less downside at this price / valuation. So, just tracking what happens next.

Agree. Looks fairly valued to me if you are looking for a 6.5% yield with a potential for delisting. But I won’t be in OFSS for growth based on the management track record. If they haven’t done any in the last 10 years despite a leadership position in the market why would it be different now?

Looks to be on the way to delisting - the way stock price getting hammered weak hands go out accumulation happening by smart operators!

I am surprised PFFAS who I admire is still holding on.

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It is low growth vs growth elsewhere.

From screener :

Infosys
Compounded Profit Growth
10 Years: 10%
5 Years: 9%
3 Years: 13%
TTM: 10%

Wipro
Compounded Profit Growth
10 Years: 8%
5 Years: 8%
3 Years: 11%
TTM: -7%

So 6.4% is not that bad :slight_smile:

Infy has done some acquisitions and Wipro has done more acquisitions. So some of this growth is bought from market. OFSS has returned all the cash to shareholders.
Organic CAGR of Wipro and OFSS should be very close.

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Decent results. Revenues up 14%. Flat profits as employee costs have increased 20%. EPS of 50. Yearly EPS should be around 205

Positive commentary from Dolat.

Target of 4100 on 15xFY25, If growth picksup with headcount (15%) ramup it may command much higher multiples.

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https://www.fintechfutures.com/2023/01/oracle-flexcube-core-banking-system-gains-new-takers/

Thank you all for posting in this thread.

I would like to know your thoughts about investing in OFSS in 2023 and the level we should be buying and traget.

Thanks all and stay safe.