GROUP 4

Oracle Financial Services Software Ltd.

• Oracle Financial Services Software Ltd. provides software and information technology solutions for the banking and financial services industry.

• The group's activity appears highly profitable thanks to itsoutperforming net margins.

• Due sound financial situation, the firm has significant leeway forinvestment.

• Analysts covering this company mostly recommend stockoverweighting or purchase.

• The difference between current prices and the average target price israther important and implies a significant appreciation potential for thestock.

Strengths

• The current area is a good opportunity for investorsinterested in buying the stock in a mid or long termperspective. Indeed, the share is moving closer to itslower bound at INR 3241.25 INR in weekly data.

• The company has strong fundamentals. More than70% of listed companies have a lower mix of growth,profitability, debt and visibility criteria.

Strengths

NET INCOME

How shift from normal to cloud based system will help Oracle:

Traditional Cloud

• No income at the point of sales, itaims at a different business model.

• The avg. income will jump to $10million over the next 10 years.

• Hence,

• Subscription and sales = $ 0

• Revenue from after sales andmaintenance = $ 10 million

• Total revenue in 10 years = $10million.

• Income, as soon as the sales happen.$1 million average till 2013-2014.

• The avg. income of $3 million overthe next 10 years from currentcustomers.

• Hence,

• Subscription and sales = $1 million

• Revenue from after sales andmaintenance = $3 million.

• Total revenue in 10 years : $ 4million.

Sales , Finance/Debt and EBITDA

P/E Ratio Avg: 21.1

Currently (‘16): 29

Years

ROE

RETURN ON EQUITY

Analysing Growth

• OFSSL derives a majority of software license revenues from the sale of licenses

for its flagship products.

• OFSS’s Q2 2015 revenues increased 6.2% led by a 9.3% growth in the product

segment (82% of revenue) which saw new license sales surge 103%.

• Higher license sales were a key revenue driver in the products business,

boosting EBITDA margins to 42%

• License growth drives margin leverage: Product margins improved to 49% and

services margins to 21.1%. Net income increased marginally by 1.5%.

• OFSS has seen consistent new license growth over the past four quarters and

strong license growth is expected which will translate into better

implementation and maintenance revenues through FY16/FY17

Why should you invest in us?

Mission:

“Deliver The Best Information With Highest Quality Of Service And

Lowest Cost.”

• We believe in doing things before they get popularized.

• Revenue from the products business grew by 11% sequentially to Rs 670 crores

in 2014-15 and is expected to increase in the subsequent years.

• Current Attractiveness :

- Multiplying platforms:

- The Oracle financial services are one of the market leaders moving towards

the innovation and early adoption of the cloud financial services which

integrate all the aspects of businesses.

So come fly with us ...