Computer Age Management Services Ltd. share price target

Computer Age Management Services (CAMS) remains one of the best plays on India’s financialisation story. The aggregate nature of its business gives the company a steady growth outlook.

CAMS reported inline revenue growth (17.6% YoY, while marginal dip of 2.8% QoQ) in Q1FY23, but EBITDA saw de-growth of 14% QoQ.

Computer Age Management Services (CAMS) remains one of the best plays on India’s financialisation story. The aggregate nature of its business gives the company a steady growth outlook.

CAMS, a leader in duopoly RTA market with 70% market share is trading at mouthwatering valuations. High entry barriers, stickiness of AMCs, strong growth in the underpenetrated mutual fund AUM and rising share of high yield equity segment from 38% to 50% by FY25E are some of the value drivers for the company. CAMS has posted robust Revenue/EBITDA/PAT growth of 9%/13%/18% CAGR respectively from FY18 to FY22 and it is further expected to clock Revenue/EBITDA/PAT growth of 16%/14%/13% respectively from FY23E to FY25E.

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Computer Age Management Services Ltd (CAMS) is India's largest registrar and transfer agent (RTA) of mutual funds with an aggregate market share of approximately 70% based on mutual fund average assets under management (AAUM) managed by its clients and fastest growing RTA for last 5 years. CAMS is responsible for entire back end work of

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...