Oracle Financial Services Software Q1 - Results Beat, Healthy Cloud Wins Adding To Visibility: Dolat Capital

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Dolat Capital Report.Oracle Financial Services Software Ltd. reported rev. growth of 19.1% YoY in Indian rupee terms at Rs 17.4 billion (our estimate at Rs 16.5 billion, 14% growth). Revenue beat was led by seasonality led healthy license revenue recognition (up 37% YoY). Healthy licence wins along with strong cost control led to improved Ebit Margin at 47.6% (our estimate: 42.8%), up 641 bps YoY.License signings for Q1 stood at $35.1 million up 28% YoY. Meanwhile, headcount remained flat at 8700. Cloud deals continue to drive the new win momentum and thus may impact license realisation in near term but adds better visibility and reduces volatility in performance.Oracle Financial Services Software’ healthy license win momentum and robust commentary on pipeline has increased our confidence on growth prospects, prompting us to raise our FY25/FY26E earnings estimates by 2%/3% respectively. We remain positive on medium-to-long term prospects given leadership in large, underpenetrated CBS market. However, given the sharp recent up-move we revise our rating to ‘Reduce’ (earlier Accumulate) with DCF based target price of Rs 10,500 (implies ~32 times FY26E PER, ~three times on PEG). Our bias remains to add into the name at right price points..Click on the attachment to read the full report:.KPIT Technologies Q1 Results Review - Inline; Guidance Retained; Commentary Confident: Dolat Capital.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Oracle Financial Services Software Q1 - Results Beat, Healthy Cloud Wins Adding To Visibility: Dolat Capital

The brokerage remains positive on medium-to-long term prospects given leadership in large, underpenetrated core banking system market.

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Oracle Financial Services Software Q1 - Results Beat, Healthy Cloud Wins Adding To Visibility: Dolat Capital

The brokerage remains positive on medium-to-long term prospects given leadership in large, underpenetrated core banking system market.

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