CAMS Analyst Day: Company shares insights on new business initiatives

| Leave a Comment | Stocks

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

Related News

  • 21 Sep

    Electronics Mart India shares jump over 4% on block deal

    Electronics Mart India shares climbed over 4% in opening trade on September 21 after 96.2 lakh shares of the firm changed hands in a block deal worth Rs 137.6 crore. The buyers and sellers could not be immediately ascertained. Electronics Mart India is a retailer of electronics home appliances and consumer durables. It is headquartered in Hyderabad, Telangana. The company's revenue jumped 19.95% year-on-year to Rs 1,691.56 crore in Q1 FY24. Its net profit climbed 48.2% to Rs 60.26 crore. Shares of the company are up 70% this year to date. The stock price is around 11% down from its 52-week high of Rs 166.50.

  • 21 Sep

    West Coast Paper Mills shares jump 3% on NCLT approval for Uniply Decor acquisition

    West Coast Paper Mills shares were trading 3% higher in the morning trade on September 21 after the paper-maker announced having received approval for its resolution plan to acquire Uniply Decor from the National Company Law Tribunal (NCLT). The company's stock has been on an upward trend since July 27th.

  • 21 Sep

    Zydus Lifesciences Receives USFDA Approval for Acne Gel

    Zydus Lifesciences shares rose nearly 1% on September 21 after the company received final approval from the USFDA for Clindamycin Phosphate Gel USP, a skincare gel used to treat acne. The drug will be manufactured at the group’s topical manufacturing facility at Changodar, Ahmedabad. This is the latest in a series of approvals for Zydus Lifesciences from the USFDA. The company is expected to continue to do well in its current business operations, with new drivers for growth based on vaccines, biosimilars, and complex generics.

  • 20 Sep

    TCS: Strong Deal Momentum and Revamped Organizational Structure Provide Resilience and Position the Company for Growth

    TCS: Strong Deal Momentum and Revamped Organizational Structure Provide Resilience and Position the Company for Growth TCS, India's largest IT services company, has reported robust deal wins over the past few quarters. The company is also well-positioned to grab market share during the current challenging environment due to its strong domain expertise, global presence, and proven ability to cross-sell its services. The recent organizational restructuring is expected to alleviate concerns and aid in driving growth. Analysts maintain a Buy rating on TCS with a revised price target of Rs. 4,200, as they believe the company is well-placed to grab cost takeout as well as digital transformation programs along with opportunities arising from vendor consolidation.

  • 20 Sep

    Power Stocks Surge on Robust Growth Outlook

    hares of NTPC, Power Grid, and JSW Energy surged on September 20, buoyed by a robust growth outlook for the power sector. Jefferies recommended these stocks as its top picks, citing India's capex-driven GDP growth, which is expected to lead to a rise in power intensity. The brokerage firm also expects the capex CAGR in the power sector to rise 9x at 20 percent in the period of FY23 to FY26. The robust growth outlook for the power sector is supported by a number of factors, including India's growing economy and population, the government's focus on renewable energy and infrastructure development, and the government's various initiatives to promote electric vehicles and smart grids.

Leave a Reply

Your email address will not be published. Required fields are marked *