Oracle Financial Services Software zooms 20% to record high on robust Q3 numbers

Shares of Oracle Financial Services Software (OFSS) zoomed 20 percent on January 18 to hit a fresh record high of Rs 6,103.40 on the NSE. The sharp rally comes a day after the company posted robust earnings for the quarter ended December 2023.

The company’s net profit jumped nearly 70 percent on-year to Rs 740.8 crore, and revenue from operations jumped 26 percent to Rs 1,823.6 crore.

Oracle Financial provides products and services to the financial services industry and is a majority-owned subsidiary of Oracle Corporation. Its margins were strong in Q2FY24, with the operating margin at 46.1 percent and net margin at 40.6 percent.

The company’s licence fee signings were $49.5 million for the quarter across their product lines for both Cloud/SaaS and on-premises deployment modes, said managing director and chief executive officer Makarand Padalkar.

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Oracle signed a landmark cloud deal with Navy Federal Credit Union, USA, during the December quarter, and the management continues to see a robust deal pipeline across all the regions.

At 11:33am, the Oracle shares were trading 20 percent higher at Rs 6,103.40 on NSE. The stock has surged 95 percent in the last one year, outperforming the benchmark Nifty 50 which has surged 18 percent in this period.

Technical view

Oracle Financial Services Software has formed a bullish engulfing candlestick pattern on the daily timeframe with healthy volumes. “The counter has been making higher highs and higher lows. Also, it has nicely followed major DEMAs on a weekly basis. A couple of weeks back, it took out its previous swing high and sustained above it,” said Jigar S Patel of Anand Rathi Shares & Stock Brokers.

“On the indicator front, daily stochastics has entered the overbuy zone once again, which is a sign of strength. Thus, one can buy in the zone of Rs 4,900-5,100 for a target of Rs 5,400, and the stop-loss would be Rs 4,800 on a daily close basis,” he said.

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