Shares of Oracle Financial Services Software rallied 20% to hit a new 52-week high at Rs 6,098 in Thursday’s trade on BSE after the firm reported a 69.4% year-on-year (YoY) jump in net profit at Rs 740.8 crore for the third quarter that ended December 31, 2023.
In the corresponding quarter last year, the company posted a net profit of Rs 437.3 crore. Its revenue from operations increased 25.9% to Rs 1823.6 crore as against Rs 1449.2 crore in the corresponding period of the preceding fiscal.
The operating income for the quarter was Rs 840 crore, up 45% YoY. Net income for the quarter was Rs 741 crore, up 69% YoY. For the three months ended December 31, 2023, the products business posted a revenue of Rs 1,680 crore, up 29% YoY, and operating income of Rs 867 crore, up 41% YoY.
Makarand Padalkar, Managing Director and CEO, said, “Our license fee signings were $49.5 million across our product lines for both Cloud/SaaS and on-premises deployment modes. For the nine months ended December 2023, our license signings were $117.4 million, 76% higher than the corresponding period last fiscal.”
“We signed a landmark cloud deal with Navy Federal Credit Union, USA during the previous quarter, and we continue to see a robust deal pipeline across all the regions as we continue to serve the market with our product portfolio,” Makarand said.
Also read: HDFC Bank shares tank 12% in 2 days in Rs 1.3 lakh-crore rout. No dip buyers left
At 10.49 am, the scrip was trading 18.6% higher at Rs 6,032 on BSE. Meanwhile, the stock surged nearly 46% in the last three months and 93% in the past one year.
As per Trendlyne data, the average target price of the stock is Rs 4,750, which shows a downside of 21% from the current market prices. The consensus recommendation from one analyst for the stock is a ‘Buy’.
Technically, the stock is in the overbought zone as the day RSI (14) is at 73.4. The RSI below 30 is considered oversold, and above 70 is overbought, Trendlyne data showed. MACD is at 112.5, which is above its center and signal line, this is a bullish indicator.
Oracle Financial Services Software is currently trading above its 20-day, 50-day, and 200-day simple moving averages (SMAs). The stock has been relatively low on the volatility front, with a 1-year beta of 0.3, according to Trendlyne.
(You can now subscribe to our ETMarkets WhatsApp channel)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
