Computer Age Management Services Ltd. share price forecast
The 6 reports from 5 analysts offering long term price targets
for Computer Age Management Services Ltd. have an average target of 1480.00. The consensus estimate
represents a downside of -21.96%
from the last price of 1896.50.
We initiate coverage on the stock with a BUY rating and a DCF-based target price of Rs 1,480. With an AUM market share of 72.9% in a two-player RTA market, CAMS is a play on Indias growing asset management industry. The company is well integrated with its customers, managing growing transactions and more than 275TB of client data. The entry barriers to this business are high, and replacing the company is not easy, putting it in a uniquely advantageous position. We expect FY21-23E revenue/operating profit (OP) CAGR of 12.3/21.8%. Margins will be driven by a resurgence in flows and better cost control. Insurance, AIF, and NBFC businesses are future growth drivers
Over the past 5 years, CAMS has strengthened its market share from 61% in March 2015 to 70% in July 2020, based on AAUM serviced. With the MF RTA industry estimated grow at a CAGR of 15% over FY20-25E, we believe CAMS can also deliver similar growth going forward. CAMS provides investors a better investment option over AMCs as (i) CAMS operates in a two player duopoly market where despite being the larger player(70% market share), it is further gaining market share consistently and (ii) being exposed to 9 of the top 15 MFs and 4 of the top 5 MFs substantially reduces the risk of market share loss by any single MF which will always be the threat in case of a standalone MF company. We recommend SUBSCRIBE to the issue from a long term perspective.
Headquartered in Chennai, CAMS is India's largest registrar and transfer agent with market share of ~70% based on mutual fund's average AUM managed by its clients and serviced as of July 2020. Company is co-owned by NSE Investments, Warburg Pincus, Faering Capital ACSYS Investments and HDFC Group. Company offers integrated services for receipt, verification and processing of financial and non-financial transactions for the BFSI (banking, financial services and insurance) sector, largely the mutual fund industry. Over the last five years, it has grown its market share from approximately 61% in FY15 to approximately 69% in FY20, based on AAUM serviced. Its mutual fund clients include four of the five largest...
CAMS is a technology-driven financial infrastructure and services provider to mutual funds and other financial institutions with over 2 decades of experience. CAMS is India's largest registrar and transfer agent of mutual funds with an aggregate market share of 70% based on mutual fund average assets under management (AAUM) managed by its clients and serviced by them during July 2020. Over the last 5 years, CAMS has grown its market share from 61% during March 2015 to 69% during March 2020, based on AAUM serviced, according to the CRISIL Report. Its mutual fund clients include 4 of the 5 largest mutual funds as well as 9 of the 15 largest mutual funds based on AAUM during July 2020....
Apart from this, CAMS also provides services to alternative investment funds (AIFs), insurance companies, banks and NBFCs. Great Terrain is the promoter of CAMS with its pre-issue shareholding at 43.53%. Great Terrain is the wholly owned subsidiary of Harmony River Investment Ltd, which is...
