Buy Oracle Financial; target of Rs 3750: Firstcall Research

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Firstcall Research is bullish on Oracle Financial Services Software and has recommended buy rating on the stock with a target of Rs 3750 in its January 11, 2013 research report.
 
“Oracle Financial Services Software Limited (referred to as "Oracle Financial Services Software") is a world leader in providing products and services to the financial services industry and is a majority owned subsidiary of Oracle. Oracle Corporation is the world’s largest enterprise software company. Oracle Financial Services Software (formerly i-flex solutions) is a leading provider of applications and professional services for the financial services industry. Its portfolio of offerings includes Oracle FLEXCUBE, a complete banking product suite for retail, consumer, corporate, investment, and asset management, and investor servicing. As a part of Oracle's analytics for the financial services industry Oracle Reveleus offers a suite of analytical applications for capital adequacy, stress testing, multi-jurisdictional Basel II compliance, enterprise performance management, and customer insight, and helps institutions address their enterprise risk and compliance needs. Oracle Mantas is the industry's most comprehensive solution for anti-money laundering, fraud detection, and trade compliance.”
 
“At the current market price of Rs 3348, the stock P/E ratio is at 22.45 x FY13E and 20.05 x FY14E respectively. Earning per share (EPS) of the company for the earnings for FY13E and FY14E is seen at Rs.149.15 and Rs.166.96 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 10% and 13% over 2011 to 2014E respectively. On the basis of EV/EBITDA, the stock trades at 12.36 x for FY13E and 10.67 x for FY14E. Price to Book Value of the stock is expected to be at 3.75 x and 3.16 x respectively for FY13E and FY14E. We recommend ‘BUY’ in this particular scrip with a target price of Rs 3750 for medium to long term investment,” says Firstcall Research report.

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