⚠ 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: 4.3
| Stock Code | CAMS | Market Cap | 16,766 Cr. | Current Price | 676 ₹ | High / Low | 875 ₹ |
| Stock P/E | 37.7 | Book Value | 45.6 ₹ | Dividend Yield | 1.83 % | ROCE | 54.8 % |
| ROE | 43.9 % | Face Value | 2.00 ₹ | DMA 50 | 736 ₹ | DMA 200 | 768 ₹ |
| Chg in FII Hold | -2.25 % | Chg in DII Hold | 1.24 % | PAT Qtr | 122 Cr. | PAT Prev Qtr | 111 Cr. |
| RSI | 34.6 | MACD | -15.8 | Volume | 9,43,093 | Avg Vol 1Wk | 11,08,591 |
| Low price | 606 ₹ | High price | 875 ₹ | PEG Ratio | 2.58 | Debt to equity | 0.06 |
| 52w Index | 26.1 % | Qtr Profit Var | 3.53 % | EPS | 18.0 ₹ | Industry PE | 49.1 |
📊 Core Financials
- Revenue & Profit Growth: Quarterly PAT rose from 111 Cr. to 122 Cr. (3.53% growth).
- Profit Margins: Strong ROE at 43.9% and ROCE at 54.8%, indicating efficient capital use.
- Debt Ratios: Very low debt-to-equity of 0.06, showing a debt-light balance sheet.
- Cash Flows: Healthy dividend yield of 1.83% reflects consistent cash generation.
💹 Valuation Indicators
- P/E Ratio: 37.7 vs Industry PE of 49.1 (slightly undervalued compared to peers).
- P/B Ratio: Current Price 676 ₹ / Book Value 45.6 ₹ ≈ 14.8 (premium valuation).
- PEG Ratio: 2.58, suggesting growth is priced in at a premium.
- Intrinsic Value: Fair value estimated around 640–660 ₹, making current price near fair zone.
🏢 Business Model & Competitive Advantage
- India’s leading registrar and transfer agent for mutual funds and financial services.
- High entry barriers due to regulatory approvals and established client relationships.
- Strong moat with long-term contracts and technology-driven operations.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range between 620–660 ₹ (close to intrinsic value and near support levels).
- Long-Term Holding: Strong fundamentals, low debt, and high ROE/ROCE make it suitable for long-term compounding.
✅ Positive
- High ROE and ROCE indicating strong efficiency.
- Debt-light structure with consistent dividend payouts.
- Quarterly profit growth and strong industry positioning.
⚠️ Limitation
- Premium valuation with high P/B ratio.
- PEG ratio above 2 suggests growth is expensive.
- Stock trading below DMA 50 and DMA 200, showing weak near-term momentum.
📉 Company Negative News
- Decline in FII holding (-2.25%) indicates reduced foreign investor confidence.
- Technical indicators (RSI 34.6, MACD -15.8) show bearish sentiment.
📈 Company Positive News
- DII holdings increased (+1.24%), showing domestic institutional support.
- Quarterly PAT growth and stable dividend yield reinforce financial strength.
🏭 Industry
- Financial services industry PE at 49.1, higher than CAMS’s 37.7, suggesting relative undervaluation.
- Mutual fund industry expanding rapidly in India, offering long-term growth tailwinds.
🔎 Conclusion
- CAMS is fundamentally strong with high efficiency and low debt.
- Valuation is slightly premium but justified by strong moat and industry growth.
- Best suited for long-term investors; entry around 620–660 ₹ offers favorable risk-reward.
Would you like me to also prepare a technical chart-based entry strategy (support/resistance zones with RSI/MACD signals) to complement this fundamental view?