CAMS is a mutual fund transfer agency. It provides technology-driven financial infrastructure & services to MFs and other financial institutions.
CAMS reported a mixed performance.
CAMS’ share price has grown by ~1.7x over the past two years. Sustainable growth opportunity & market leadership remains positive though richly valued.
We value CAMS at ~41x FY24E EPS and revise our target price from ₹ 3500 to ₹ 2760 per share.
Apart from CAMS, in our coverage we also like Nippon Life.
|(| crore)||FY19||FY20||FY21||FY22||4 year CAGR
|FY23E||FY24E||2 year CAGR
|Managed AUM (| lakh crore)||15.8||18.2||20.0||26.7||31.4||36.6|
|Revenue||243.2||199.8||21.7||237.7||2.3||Sequential revenue growth subdued|
|Yield (bps)||3.6||3.6||6 bps||3.6||8 bps|
|EBIDTA (incl other inccome)||116.4||93.2||24.9||117.4||-0.9||Subdued revenue kept QoQ EBITDA flattish|
|EBITDA margin (%)||47.0||45.7||134 bps||48.6||-151 bps|
|PAT||73.8||60.1||22.8||77.3||-4.5||Weak topline impacted PAT QoQ|
|Total AUM served||2670000||2230000||19.7||2670000||0.0||Market share largely maintained at 69%|
|Total transaction volume (Nos. Cr)||11.5||8.6||34.2||11.1||4.2||Healthy traction in transaction volumes|
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