Oracle Financial Services Software Ltd.
NSE: OFSSOracle Financial Services Software Ltd.: A 30-second snapshot
Oracle Financial Services Software (OFSS) is a vertically focused IT company serving global banking and financial services clients, trading at ₹10,191 as of the run date — 3.7% below its 52-week high after a 52.9% advance over the prior 3 months and 25.0% over the prior 12 months. Trailing PE stands at 33.8x (forward 26.6x), the highest among the 6 IT peers tracked, while ROE of 32.6% and a quality score of 72 rank 2nd and 1st in the peer group respectively.
P/E
33.8
Forward P/E
26.6
ROE
+32.6%
Debt / Equity
0.41
Profit Margin
+34.4%
Div. Yield
+6.7%
5Y ROE > 15%
4/5
5Y FCF > 0
4/5
Quality
72/100
News
8 headlines · 4 positive · 1 negative
Oracle Financial Services bucks IT rout in CY26; rises 16% while peers fall - Business Standard
Business Standard
Oracle revokes placement offers - financialexpress.com
financialexpress.com
Nazara Tech, Indiamart, OFSS, Meesho, others: Brokerage sees up to 74% upside in new-age tech stocks - MSN
MSN
Nazara Tech, Indiamart, OFSS, Meesho, others: Brokerage sees up to 74% upside in new-age tech stocks - Business Today
Business Today
Dividend alert! Last date to buy OFSS shares for Rs 270 dividend - The Economic Times
The Economic Times
Recent context
- ·OFSS rose approximately 16% in calendar year 2026 through mid-May while several IT peers declined, drawing coverage from Business Standard highlighting divergent sector performance during a broader IT sector rout.
- ·A Rs 270 per share dividend was declared, with the record date falling in early May 2026; a 6.67% dividend yield at prevailing prices reflects the company's high payout relative to earnings.
- ·Multiple brokerage notes cited in May 2026 included OFSS alongside new-age tech names, referencing upside estimates of up to 74% across a basket — OFSS was named in the broader list, not as the primary subject of any individual note.
Strengths
- +ROE of 32.6% has remained above 15% in all 4 of the 5 years with available data, paired with positive free cash flow in the same 4 years, and a debt-to-equity ratio of 0.42 trending lower — indicating sustained capital efficiency without reliance on leverage.
- +5-year revenue CAGR of 20.3% and earnings CAGR of 30.6% reflect durable top-line and bottom-line compounding over the measurement window, ahead of the broader IT peer group.
- +Dividend yield of 6.67% is materially above typical IT sector norms, supported by the high profit margin of 34.4% — indicating that substantial earnings are returned to shareholders.
- +Quality score of 72 ranks 1st among the 6 IT peers tracked (HCLTECH 40, WIPRO 46, TECHM 46, TCS 62, INFY 60), and the fundamental consistency score of 86 reflects low year-to-year variability in the underlying business metrics.
Weaknesses
- −At a trailing PE of 33.8x, OFSS is priced at a 19–117% premium to each of the 5 IT peers in the comparison set, carrying the highest valuation multiple in a group that includes TCS and Infosys — stocks with comparable or superior ROE.
- −The 3-month price advance of 52.9% has pushed the stock 21.9% above its 50-DMA and 28.8% above its 200-DMA, with RSI at 69.61 approaching the 70 overbought threshold; the nearest charted support level is 15.2% below the current price.
- −Analyst coverage tracked for OFSS stands at only 2 analysts with no usable aggregate rating score — in contrast to most large-cap IT peers, this limits the depth of sell-side consensus data available for cross-referencing.
- −One news headline from May 2026 reports Oracle revoking placement offers, a negative signal for near-term hiring momentum that could weigh on growth expectations if the trend extends to OFSS operations.
Open questions
- ?Does the 34% profit margin and 30.6% earnings CAGR reflect a structural moat from deep banking-sector software lock-in, or is the growth partly driven by a cyclical wave of core-banking modernisation that could moderate?
- ?How does the 33.8x trailing PE compare to OFSS's own historical PE range over the past 5–10 years, and does the current level represent expansion beyond historical norms or a return to them?
- ?Given that the forward PE of 26.6x implies a meaningful earnings step-up relative to the trailing figure, what specific revenue and margin drivers — deal wins, product pricing, geography mix — would need to materialise to justify that implied growth?
- ?With only 2 analysts providing coverage, what accounts for the relative lack of institutional sell-side attention on a NIFTY-listed IT company of this size, and does thin coverage introduce any pricing discovery risks?
Peer comparison: IT
Ranks 1 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| OFSS | Oracle Financial Services Software Ltd.You're viewing | 33.8 | +32.6% | 72 |
| Industry avg | across 5 peers | 19.4 | +27.1% | 51 |
| TCS | Tata Consultancy Services Ltd. | 16.9 | +48.4% | 62 |
| INFY | Infosys Ltd. | 15.6 | +31.4% | 60 |
| TECHM | Tech Mahindra Ltd. | 28.5 | +16.6% | 46 |
| WIPRO | Wipro Ltd. | 16.4 | +15.5% | 46 |
| HCLTECH | HCL Technologies Ltd. | 19.5 | +23.4% | 40 |
Technical state
Current price
₹10,191.00
SMA 50
₹8,348.72
SMA 200
₹7,908.24
RSI (14)
69.6 (neutral)
From 52w high
-3.7%
1Y return
+25.0%
3M return
+52.9%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Risk flags
- mediumPrice of ₹10,191 is 21.9% above the 50-DMA (₹8,348.72) and 28.8% above the 200-DMA (₹7,908.24) following a 52.9% advance over 3 months. RSI at 69.61 is approaching the conventional overbought threshold of 70. The nearest identified support sits 15.2% below current price at ₹8,646.50.
- mediumOFSS trades at a trailing PE of 33.8x, ranking 6th (highest) of 6 IT peers tracked. INFY trades at 15.6x, TCS at 16.9x, WIPRO at 16.4x, HCLTECH at 19.5x, and TECHM at 28.5x — placing OFSS at a 19–117% premium to the group on this metric.
- lowROE above 15% and positive FCF are each confirmed in 4 of 5 available years; the fifth year's data is absent, limiting full multi-year persistence assessment. Consistency score of 86 and falling debt trend reduce but do not eliminate this gap.
- lowAnalyst coverage is thin: only 2 analysts tracked with a null aggregate rating score, providing negligible consensus signal for OFSS relative to large-cap IT peers.
Cross-section contradictions
- OFSS ranks 1st of 6 IT peers on quality score (72) and 2nd on ROE (32.6%), yet ranks last (6th) on trailing PE — the stock carries the sector's highest valuation multiple despite peers like TCS (ROE 48.4%) and INFY (ROE 31.4%) trading at roughly half the PE.
- The forward PE of 26.6x vs trailing PE of 33.8x implies the market is pricing in a meaningful earnings acceleration; the 52.9% price gain over 3 months has already moved well ahead of both moving averages while that acceleration is still prospective.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 1 Jun 2026 · rotates through NIFTY 500 every ~5 days