CAMS - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 4.1
| Stock Code | CAMS | Market Cap | 20,454 Cr. | Current Price | 823 ₹ | High / Low | 875 ₹ |
| Stock P/E | 49.3 | Book Value | 48.7 ₹ | Dividend Yield | 1.52 % | ROCE | 48.3 % |
| ROE | 37.0 % | Face Value | 2.00 ₹ | DMA 50 | 761 ₹ | DMA 200 | 749 ₹ |
| Chg in FII Hold | -0.21 % | Chg in DII Hold | 0.06 % | PAT Qtr | 99.0 Cr. | PAT Prev Qtr | 122 Cr. |
| RSI | 63.2 | MACD | 11.4 | Volume | 12,09,137 | Avg Vol 1Wk | 16,38,400 |
| Low price | 611 ₹ | High price | 875 ₹ | PEG Ratio | 3.05 | Debt to equity | 0.04 |
| 52w Index | 80.4 % | Qtr Profit Var | -6.68 % | EPS | 17.6 ₹ | Industry PE | 44.8 |
CAMS demonstrates strong fundamentals with high ROCE and ROE, minimal debt, and consistent dividend payouts. Technically, the stock is trading above its 50 DMA and 200 DMA, with RSI at 63.2 and MACD positive, indicating bullish momentum. However, the elevated P/E ratio, declining quarterly profits, and reduced FII holdings suggest caution. Overall, it is a moderately strong candidate for swing trading.
💡 Optimal Entry Price: 780–800 ₹ (near support levels close to DMA 50).
📈 Exit Strategy: If already holding, consider booking profits near 860–870 ₹ (recent highs) or exit if price falls below 760 ₹ (DMA 50 support).
✅ Positive
- 📈 Strong ROCE at 48.3% and ROE at 37% show efficient capital use.
- 💰 Low debt-to-equity ratio of 0.04 ensures financial stability.
- 📊 Dividend yield of 1.52% adds investor appeal.
- 📉 Price trading above DMA 50 and DMA 200, confirming bullish trend.
⚠️ Limitation
- 📉 High P/E ratio of 49.3 compared to industry average of 44.8.
- 📉 PEG ratio at 3.05 suggests overvaluation relative to growth.
- 📉 Decline in quarterly PAT (-6.68%) signals slowing earnings momentum.
📰 Company Negative News
- 📉 Reduced FII holding (-0.21%) indicates waning foreign investor confidence.
- 📉 PAT dropped from 122 Cr. to 99 Cr. in the latest quarter.
🌟 Company Positive News
- 📈 Stable DII holding (+0.06%) shows domestic institutional support.
- 📊 Strong fundamentals with consistent dividend payouts.
🏭 Industry
- 📊 Industry P/E at 44.8, slightly lower than CAMS, suggesting sector is moderately valued.
- 📈 Financial services industry remains resilient with steady demand for registrar and transfer agent services.
📌 Conclusion
CAMS is a fundamentally strong company with bullish technical indicators, making it a decent swing trade candidate. Entry is favorable near 780–800 ₹, with profit booking advised around 860–870 ₹. Caution is warranted due to high valuation and declining quarterly profits.