If you’re always on the lookout for promising investment opportunities, you might find Computer Age Management Services Limited (CAMS) intriguing. CAMS is a mutual fund transfer agency that caters to Indian asset management companies. Established in 1988 and headquartered in Chennai, the company has a solid track record in the financial industry.
Notably, CAMS became publicly listed in October 2020 after conducting an initial public offering (IPO), facilitated by its existing shareholders. In this article, we will delve into CAMS’s background, explore its operations as a mutual fund transfer agency, and discuss its journey as a publicly listed company. This information will provide you with valuable insights to help you evaluate CAMS as a potential investment opportunity.
CAMS Q4 Results: Stellar Profit Surge and Robust Revenue Growth
- Revenue increased by 24.56% Year-on-Year (YoY) and 7.17% Quarter-on-Quarter (QoQ).
- Profit rose by 38.72% YoY and 15.91% QoQ.
- Q4 Earnings Per Share (EPS) stood at ₹20.95, a 38.44% increase YoY.
- Operating income saw a 35.11% increase YoY and a 12.91% rise QoQ.
- Selling, General & Administrative (SG&A) expenses grew by 19.58% YoY and 5.05% QoQ.
- Market performance included a -6.47% change in the last week, 30.26% increase over the last 6 months, and 16.74% Year-to-Date (YTD) return.
- Market capitalization is ₹15211.52 Cr, with a 52-week high/low of ₹3367 and ₹2048.6.
- Analyst recommendations: 1 Strong Sell, 2 Sell, 3 Hold, 4 Buy, and 2 Strong Buy
Below are the trading platforms that you can use to purchase CAMS shares:
➤ Zerodha
➤ Upstox
➤ Groww
➤ AngelOne
➤ ICICIDirect
| When | Maximum Price | Minimum Price |
| June 2024 | 3,864.24 | 3,360.21 |
| July 2024 | 3,825.60 | 3,326.61 |
| August 2024 | 3,978.62 | 3,459.67 |
| September 2024 | 4,137.77 | 3,598.06 |
| October 2024 | 4,056.63 | 3,527.51 |
| November 2024 | 4,178.33 | 3,633.33 |
| December 2024 | 4,282.79 | 3,724.17 |
CAMS shares are projected to reach a maximum of ₹4,282.79 and a minimum of ₹3,724.17 by December 2024. Currently priced at ₹3,578 as of June 16, 2024, with a market cap of ₹17,599 Cr, the stock has shown resilience with a 52-week high/low of ₹3,686/₹2,132, a P/E ratio of 52.2, and a book value of ₹186
| When | Maximum Price | Minimum Price |
| January 2025 | 4,368.45 | 3,360.34 |
| February 2025 | 4,480.46 | 3,446.51 |
| March 2025 | 4,655.20 | 3,580.92 |
| April 2025 | 4,563.92 | 3,510.71 |
| May 2025 | 4,430.99 | 3,408.45 |
| June 2025 | 4,630.38 | 3,561.83 |
| July 2025 | 4,539.59 | 3,491.99 |
| August 2025 | 4,679.99 | 3,599.99 |
| September 2025 | 4,843.79 | 3,725.99 |
| October 2025 | 4,969.73 | 3,822.87 |
| November 2025 | 5,093.97 | 3,918.44 |
| December 2025 | 5,221.32 | 4,016.40 |
CAMS shares are expected to range between ₹4,368.45 and ₹3,360.34 in January 2025, with projections reaching as high as ₹5,221.32 and as low as ₹3,360.34 by December 2025.
| When | Maximum Price | Minimum Price |
| January 2026 | 5,377.96 | 4,136.89 |
| February 2026 | 5,515.86 | 4,242.97 |
| March 2026 | 5,730.98 | 4,408.44 |
| April 2026 | 5,618.60 | 4,322.00 |
| May 2026 | 5,454.96 | 4,196.12 |
| June 2026 | 5,700.43 | 4,384.94 |
| July 2026 | 5,588.65 | 4,298.97 |
| August 2026 | 5,761.50 | 4,431.92 |
| September 2026 | 5,963.15 | 4,587.04 |
| October 2026 | 6,118.19 | 4,706.30 |
| November 2026 | 6,271.15 | 4,823.96 |
| December 2026 | 6,427.93 | 4,944.56 |
| When | Maximum Price | Minimum Price |
| January 2027 | 6,556.49 | 5,043.45 |
| February 2027 | 6,724.60 | 5,172.77 |
| March 2027 | 6,986.86 | 5,374.51 |
| April 2027 | 6,849.86 | 5,269.13 |
| May 2027 | 6,650.35 | 5,115.66 |
| June 2027 | 6,949.62 | 5,345.86 |
| July 2027 | 6,813.35 | 5,241.04 |
| August 2027 | 7,024.07 | 5,403.13 |
| September 2027 | 7,269.92 | 5,592.24 |
| October 2027 | 7,458.93 | 5,737.64 |
| November 2027 | 7,645.41 | 5,881.08 |
| December 2027 | 7,836.54 | 6,028.11 |
| When | Maximum Price | Minimum Price |
| January 2028 | 7,993.27 | 6,148.67 |
| February 2028 | 8,198.23 | 6,306.33 |
| March 2028 | 8,517.96 | 6,552.28 |
| April 2028 | 8,350.94 | 6,423.80 |
| May 2028 | 8,107.71 | 6,236.70 |
| June 2028 | 8,472.56 | 6,517.35 |
| July 2028 | 8,306.43 | 6,389.56 |
| August 2028 | 8,563.33 | 6,587.18 |
| September 2028 | 8,863.05 | 6,817.73 |
| October 2028 | 9,093.48 | 6,994.99 |
| November 2028 | 9,320.82 | 7,169.86 |
| December 2028 | 9,553.84 | 7,349.11 |
| When | Maximum Price | Minimum Price |
| January 2029 | 9,744.92 | 7,496.09 |
| February 2029 | 9,994.79 | 7,688.30 |
| March 2029 | 10,384.59 | 7,988.14 |
| April 2029 | 10,180.97 | 7,831.51 |
| May 2029 | 9,884.43 | 7,603.41 |
| June 2029 | 10,329.23 | 7,945.56 |
| July 2029 | 10,126.70 | 7,789.77 |
| August 2029 | 10,439.90 | 8,030.69 |
| September 2029 | 10,805.29 | 8,311.76 |
| October 2029 | 11,086.23 | 8,527.87 |
| November 2029 | 11,363.39 | 8,741.07 |
| December 2029 | 11,647.47 | 8,959.59 |
| When | Maximum Price | Minimum Price |
| January 2030 | 11,880.42 | 9,138.78 |
| February 2030 | 12,185.05 | 9,373.11 |
| March 2030 | 12,660.26 | 9,738.66 |
| April 2030 | 12,412.02 | 9,547.71 |
| May 2030 | 12,050.51 | 9,269.62 |
| June 2030 | 12,592.78 | 9,686.75 |
| July 2030 | 12,345.86 | 9,496.82 |
| August 2030 | 12,727.69 | 9,790.53 |
| September 2030 | 13,173.16 | 10,133.20 |
| October 2030 | 13,515.66 | 10,396.67 |
| November 2030 | 13,853.56 | 10,656.58 |
| December 2030 | 14,199.90 | 10,923.00 |
CAMS Financial Condition: Last 5 Years
| CAMS financials | 2019 | 2020 | 2021 | 2022 | 2023 |
|---|---|---|---|---|---|
| Sales | 711 | 700 | 706 | 910 | 972 |
| Expenses | 450 | 413 | 409 | 486 | 551 |
| Operating Profit | 261 | 287 | 296 | 424 | 421 |
| OPM % | 37% | 41% | 42% | 47% | 43% |
| Other Income | 1 | 21 | 30 | 17 | 27 |
| Interest | 10 | 10 | 8 | 7 | 8 |
| Depreciation | 50 | 51 | 43 | 52 | 60 |
| Profit before tax | 201 | 247 | 274 | 383 | 380 |
| Tax % | 35% | 30% | 25% | 25% | 25% |
| Net Profit | 131 | 172 | 205 | 287 | 285 |
| EPS in Rs | 26.75 | 35.24 | 42.08 | 58.68 | 58.22 |
| Dividend Payout % | 84% | 35% | 150% | 66% | 85% |
From March 2018 to March 2024, Computer Age Management Services (CAMS) has shown steady growth in its financial performance. Sales have consistently increased from Rs. 659 crores in March 2018 to Rs. 1,137 crores in March 2024. Operating profit margins (OPM %) have also improved over the years, reaching 44% in March 2024, indicating efficient cost management.
Net profit rose from Rs. 146 crores in March 2018 to Rs. 351 crores in March 2024, driven by higher revenues and effective tax management. Earnings per share (EPS) grew significantly from Rs. 29.93 in March 2018 to Rs. 71.96 in March 2024, reflecting robust profitability per share. The company has maintained a consistent dividend payout of 65% in recent years, ensuring returns to shareholders amidst its growth trajectory
FAQs
The current share price of CAMS stands at ₹3,578 as of 16th June 2024.
The projected share price target for CAMS during 2024-2030, based on market analysis and expert opinions, is estimated to range between ₹3,360.21 and ₹14,199.90.
Based on prevailing market trends and historical data, it is probable that CAMS’ share price will attain a level of 5000 INR by the year 2025, although the precise value remains uncertain.
The share price of CAMS can be influenced by various factors such as the company’s financial performance, market competition, government policies, global economic conditions, and consumer demand.
Is CAMS a good stock to buy?
With a robust presence across multiple sectors and a consistent track record of financial growth, CAMS is regarded as an attractive long-term investment option, acknowledging the inherent risks associated with any stock.
Also Read
Conclusion
In conclusion, Computer Age Management Services Limited (CAMS) emerges as a compelling investment opportunity in the financial services sector. Since its IPO in 2020, CAMS has exhibited strong financial performance, marked by substantial revenue and profit growth year-on-year.
The company’s expansion into online payment aggregation with CAMSPay reflects its proactive approach in adapting to evolving market trends. Analysts project a bullish trajectory for CAMS shares, estimating significant price appreciation from ₹3,578 as of June 2024 to potential highs exceeding ₹14,000 by 2030. With a solid track record, robust market share in mutual fund services, and consistent dividend payouts, CAMS stands out as a promising choice for investors seeking sustainable growth in the Indian market
What did we learn?
