⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
CAMS - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.2
| Stock Code | CAMS | Market Cap | 16,298 Cr. | Current Price | 658 ₹ | High / Low | 875 ₹ |
| Stock P/E | 36.7 | Book Value | 45.6 ₹ | Dividend Yield | 1.88 % | ROCE | 54.8 % |
| ROE | 43.9 % | Face Value | 2.00 ₹ | DMA 50 | 699 ₹ | DMA 200 | 747 ₹ |
| Chg in FII Hold | -2.25 % | Chg in DII Hold | 1.24 % | PAT Qtr | 122 Cr. | PAT Prev Qtr | 111 Cr. |
| RSI | 43.4 | MACD | -19.0 | Volume | 17,17,895 | Avg Vol 1Wk | 16,72,231 |
| Low price | 623 ₹ | High price | 875 ₹ | PEG Ratio | 2.51 | Debt to equity | 0.06 |
| 52w Index | 13.9 % | Qtr Profit Var | 3.53 % | EPS | 18.0 ₹ | Industry PE | 46.1 |
📊 Core Financials
- Revenue Growth: Moderate, PAT up 3.53% QoQ
- Profit Margins: Strong, PAT ₹122 Cr vs ₹111 Cr
- Debt Ratio: Very low (Debt-to-Equity 0.06)
- Cash Flows: Healthy, supported by consistent profits
- Return Metrics: ROCE 54.8%, ROE 43.9% — excellent efficiency
💹 Valuation Indicators
- P/E Ratio: 36.7 (below industry PE of 46.1, slightly undervalued)
- P/B Ratio: ~14.4 (high, premium valuation)
- PEG Ratio: 2.51 (suggests growth priced in)
- Intrinsic Value: Current price ₹658 is closer to lower band (₹623), offering entry opportunity
🏢 Business Model & Competitive Advantage
- Dominant registrar & transfer agent in mutual fund industry
- High entry barriers due to regulatory compliance and trust
- Strong dividend yield (1.88%) adds investor appeal
- Consistent profitability and scalability in financial services
📈 Entry Zone & Long-Term Guidance
- Entry Zone: ₹630–₹670 range (near support levels)
- Long-Term Holding: Attractive due to strong ROE/ROCE, low debt, and industry leadership
- Risk: Premium valuation may limit upside in short term
✅ Positive
- High ROE and ROCE indicating strong capital efficiency
- Low debt ensures financial stability
- Consistent profit growth and dividend yield
⚠️ Limitation
- High P/B ratio reflects expensive valuation
- PEG ratio above 2 suggests growth is already priced in
- FII holding decreased (-2.25%), showing reduced foreign interest
📰 Company Negative News
- Decline in FII holdings may indicate cautious sentiment
- Stock trading below DMA 50 & DMA 200, showing weak momentum
🌟 Company Positive News
- Quarterly PAT growth of 3.53%
- DII holdings increased (+1.24%), showing domestic confidence
- Strong dividend yield supports investor returns
🏦 Industry
- Financial services sector with high entry barriers
- Industry PE at 46.1, CAMS trades below this, offering relative value
- Mutual fund industry growth supports long-term demand
🔎 Conclusion
- CAMS is financially strong with excellent ROE/ROCE and low debt
- Valuation is premium but justified by industry leadership
- Entry near ₹630–₹670 is favorable for long-term investors
- Best suited for patient investors seeking steady compounding