CAMS - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

📊 Fundamental Analysis: Computer Age Management Services Ltd (CAMS) Fundamental Rating: 3.8

🧾 Core Financials Snapshot

Profitability

EPS: ₹95.1 ➜ strong earnings generation

PAT slipped from ₹124 Cr to ₹113 Cr ➜ QoQ decline of 9.53%

Return Metrics

ROE: 43.4%, ROCE: 53.6% ➜ exceptional capital efficiency

Leverage & Income

Debt-to-equity: 0.08 ➜ virtually debt-free

Dividend Yield: 1.58% ➜ decent payout for long-term holders

💸 Valuation Metrics

Indicator Value Commentary

P/E Ratio 43.9 Below industry avg (51.3) ➜ fair pricing

P/B Ratio ~17.33 (₹3,916 / ₹226) ➜ rich valuation

PEG Ratio 2.58 Overvalued — price not supported by growth

📉 Insight: CAMS trades at a premium likely due to its niche market and high profitability, though PEG suggests growth expectations may be overstated.

🏢 Business Model & Moat

CAMS is the backbone of India’s mutual fund servicing ecosystem.

Services include: transaction processing, investor services, KYC compliance, and data analytics.

Competitive advantage

High switching cost for clients

Tech-driven platform integration with AMCs

Market share dominance in the RTA space

📊 Ownership Movement

FII ↓ 3.00% ➜ foreign investors trimming positions

DII ↑ 0.61% ➜ domestic institutions accumulating cautiously

📉 Technical Indicators

RSI: 35.0 ➜ approaching oversold — reversal potential

MACD: -30.8 ➜ bearish trend persists

Price trading below both DMA 50 & 200 ➜ short-term weakness, potential for bounce

✅ Suggested Entry Zone: ₹3,600–₹3,750 📌 Wait for price stabilization and volume pick-up before committing

🧭 Long-Term Investment Outlook

Ideal for portfolios seeking

High-margin, asset-light businesses

Low volatility financial tech exposure

Structural tailwinds from mutual fund penetration and digitization

⚠️ Entry should be valuation-disciplined. Best to accumulate on broader corrections or after clear visibility of earnings rebound.

Would you like a head-to-head with KFintech or an RTA sector heatmap? I can whip up a clean comparison to sharpen your view.

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