CAMS - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 05 Nov 25, 7:43 am

Fundamental Rating: 4.1

📈 Positive

• 📊 Strong return metrics — ROCE at 54.8% and ROE at 43.9% reflect excellent capital efficiency.
• 📉 Low debt-to-equity ratio of 0.07 ensures financial stability and minimal leverage risk.
• 💸 Dividend yield of 1.58% offers moderate passive income for long-term investors.
• 📈 EPS of ₹89.0 supports strong earnings visibility and valuation strength.
• 📈 DII holding increased by 3.45%, indicating rising domestic institutional confidence.

⚠️ Limitation

• 📉 High P/E of 44.1 vs industry average of 55.4 suggests premium pricing.
• 📉 PEG ratio of 3.02 indicates valuation is stretched relative to growth.
• 📉 Quarterly profit variation of -3.71% shows slight margin pressure.
• 📉 Trading near DMA levels (₹3,880 and ₹3,931), indicating consolidation phase.

📰 Company Negative News

• 📉 FII holding declined by 5.10%, showing reduced foreign investor interest.
• 📉 52-week performance down 37.9%, reflecting market caution or sectoral pressure.

🌟 Company Positive News

• 📈 MACD at 17.0 and RSI at 56.9 reflect improving technical momentum.
• 📈 Quarterly PAT stable at ₹111 Cr. vs ₹105 Cr., showing operational consistency.

📂 Industry

• 📂 CAMS operates in financial infrastructure and services, specializing in mutual fund transfer agency and fintech solutions.
• 📊 Industry P/E of 55.4 reflects high growth expectations and premium valuations for niche financial service providers.

🧭 Conclusion

• 📌 Suggested entry zone: ₹3,750–₹3,850, near support and below DMA levels for better margin of safety.
• 🕰️ Long-term holding favorable due to strong fundamentals, high return ratios, and fintech positioning.
• ⚖️ Monitor valuation multiples and foreign investor sentiment before aggressive accumulation.