Reduce Computer Age Management Services, target price Rs 2555: HDFC Securities

HDFC Securities has reduce call on Computer Age Management Services with a target price of Rs 2555. The current market price of Computer Age Management Services Ltd. is Rs 3164.1. Time period given by analyst is one year when Computer Age Management Services Ltd. price can reach defined target.

Computer Age Management Services Ltd., incorporated in the year 1988, is a Small Cap company (having a market cap of Rs 15419.59 Crore) operating in Financial Services sector.

Computer Age Management Services Ltd. key Products/Revenue Segments include Other Services for the year ending 31-Mar-2021.



Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 231.98 Crore, up 12.78 % from last quarter Total Income of Rs 205.70 Crore and up 31.65 % from last year same quarter Total Income of Rs 176.21 Crore. Company reported net profit after tax of Rs 72.56 Crore in latest quarter.

Investment Rationale
The brokerage values CAMS at 38x Sep-23E EV/NOPLAT + Sep-22 cash and investments and retains REDUCE rating with a target price of INR2,555, given the steep valuation. The stock is currently trading at FY23E/24E EV/NOPLAT of 48x/42x and P/E of 47x/41x.

Promoter/FII Holdings
Promoters held 30.96 per cent stake in the company as of 30-Sep-2021, while FIIs owned 26.49 per cent, DIIs 15.15 per cent.