Buy CAMS, target price Rs 6,000: Motilal Oswal Financial Services

Motilal Oswal Financial Services has a buy call on Computer Age Management Services with a target price of Rs 6,000. The current market price of CAMS is Rs 5283.4.
CAMS, incorporated in 1988, is a Small Cap company with a market cap of Rs 26070.68 crore) operating in Financial Services sector.

CAMS' key Products/Revenue Segments include Other Services for the year ending 31-Mar-2023.


Financials
For the quarter ended 30-09-2024, the company has reported a Consolidated Total Income of Rs 377.75 crore, up 10.10% from last quarter Total Income of Rs 343.11 Crore and up 32.68 % from last year same quarter Total Income of Rs 284.71 crore. The company has reported net profit after tax of Rs 120.83 crore in the latest quarter.

The company?s top management includes Mr.Dinesh Kumar Mehrotra, Mr.Anuj Kumar, Mr.Natarajan Srinivasan, Mrs.Vijayalakshmi Rajaram Iyer, Mr.Pravin Udhyavara Bhadya Rao. Company has Brahmayya & Co. as its auditors. As on 30-09-2024, the company has a total of 5 crore shares outstanding.

Investment Rationale
CAMS is the largest MF RTA with %) ~68% AUM market share in a duopoly market. 10 out of top 15 AMCs are customers of CAMS, a perfect proxy for MF growth.CamsPay, AIF/PMS RTA, and Insurance Repository will drive nonMF share to 20%+ in two years from 13% currently. Motilal Oswal Financial Services expects FY24-27 revenue/EBITDA/PAT CAGR of 20%/24%/26%. The stock trades at FY26E P/E of 42x. The brokerage has set a target of Rs 6,000.

Promoter/FII Holdings
Promoters held 19.87 per cent stake in the company as of 30-Sep-2024, while FIIs owned 56.53 per cent, DIIs 18.62 per cent.