CAMS Analyst Day: Company shares insights on new business initiatives

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CAMS, the leading registrar and transfer agent (RTA) in India’s mutual fund (MF) industry, held an Analyst Day to share its in-depth insights on various industry-first solutions and fresh developments in the numerous business categories it operates in.

The company currently earns around 90% of its revenue from the MF business, while the remaining 10% comes from non-MF businesses such as AIF/PMS RTA, Insurance Repository, Camspay, Account Aggregator, and CRA for NPS.

CAMS is optimistic about the future growth of its non-MF businesses, which are expected to benefit from structural tailwinds and a favorable macro environment. The company believes that each of these businesses has the potential to generate around INR 0.7-1 billion over the next three to four years.

Based on its positive outlook for CAMS, we have a BUY rating on the stock, with a target price of INR2,850 (a P/E multiple of 35x on FY25 earnings).

Here are some of the key takeaways from the Analyst Day:

  • CAMS is a leading player in the MF RTA industry with a market share of around 69%.
  • The company is well-diversified with a presence in both the MF and non-MF businesses.
  • The non-MF businesses are expected to grow rapidly in the coming years, driven by structural tailwinds and a favorable macro environment.
  • CAMS is a strong financial performer with a track record of consistent growth.
  • We believe that the stock is undervalued and has the potential to deliver significant returns to investors over the long term

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