Over the past year, CAMS shares have traded flat on the bourses, gaining around 4.5 percent.
Shares of Computer Age Management Services (CAMS) Ltd gained in trade on Tuesday, July 15, after domestic brokerage Motilal Oswal reiterated its bullish ‘buy’ call on the capital markets player.
The brokerage reiterated its ‘buy’ call, with a one year target price of Rs 5,000, indicating a P/E multiple of 42x on FY27E earnings. This indicates an upside potential of 21 percent from current levels.
CAMS continues to reinforce its position in the mutual fund industry, holding ~68 percent market share and serviced AUM size of Rs 44.1 lakh crore (FY25). The company managed about 132 new fund offers in FY25, mobilizing a cumulative amount of Rs 73,400 crore.
Mutual fund AUM growth has picked up in the recent past, supported by sustained SIP inflows and mark-to-market gains. “We expect this momentum to continue, given the rising adoption of MFs as a savings product. Direct investing through discount brokers has also gained traction, and with MF penetration still at just 4 percent, we expect this trajectory to sustain. CAMS is well-positioned to benefit from this trend,” said Motilal Oswal.
At 11.35 a.m., shares of CAMS were quoting Rs 4,224.8, up 2.4 percent on the NSE.
The brokerage noted that CAMS experienced accelerated yield compression in FY25, largely driven by a structural repricing with a large mutual fund client.
Further, Motilal said it has largely maintained its earnings estimates for FY26/FY27, as healthy AUM growth and increasing traction in non-mutual fund segments are expected to offset the decline in yields, as guided by the management. “We expect revenue/PAT to post a CAGR of 11 percent/12 percent over FY25-27,” said Motilal Oswal.
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