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CAMS - Technical Analysis with Chart Patterns & Indicators

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Rating: 4.3

Last Updated Time : 28 May 26, 07:38 pm

Technical Rating: 4.3

Stock Code CAMS Market Cap 19,528 Cr. Current Price 787 ₹ High / Low 875 ₹
Stock P/E 44.7 Book Value 48.7 ₹ Dividend Yield 1.58 % ROCE 49.8 %
ROE 39.0 % Face Value 2.00 ₹ DMA 50 748 ₹ DMA 200 745 ₹
Chg in FII Hold -0.21 % Chg in DII Hold 0.06 % PAT Qtr 99.0 Cr. PAT Prev Qtr 122 Cr.
RSI 57.2 MACD 9.89 Volume 16,48,682 Avg Vol 1Wk 15,55,093
Low price 611 ₹ High price 875 ₹ PEG Ratio 2.45 Debt to equity 0.04
52w Index 66.6 % Qtr Profit Var -6.68 % EPS 17.6 ₹ Industry PE 41.4

📈 Chart & Trend Analysis: CAMS is trading at ₹787, comfortably above its 50 DMA (₹748) and 200 DMA (₹745), confirming bullish undertones. RSI at 57.2 suggests neutral momentum with room for upside. MACD at 9.89 shows positive divergence, supporting continuation of the uptrend. Bollinger Bands place the price mid-range, reducing immediate reversal risk.

🔎 Momentum Signals: Current volume (16.48L) is slightly higher than the 1-week average (15.55L), indicating healthy participation. Short-term momentum favors gradual upside, though resistance near ₹820–₹830 may cap gains.

🎯 Entry Zone: ₹770–₹780 (near support and DMA cluster)

🚪 Exit Zone: ₹820–₹830 (resistance band)

🛑 Stop-Loss: ₹755 (below 200 DMA)

📊 Trend Status: Trending upward with moderate momentum; consolidation possible if profit-taking continues after recent highs.


Positive

  • Strong ROE (39.0%) and ROCE (49.8%) highlight excellent efficiency.
  • Low debt-to-equity (0.04) ensures financial stability.
  • Dividend yield at 1.58% provides steady shareholder returns.
  • Trading above both 50 DMA and 200 DMA confirms bullish bias.

Limitation

  • High P/E (44.7) compared to industry PE (41.4) limits valuation comfort.
  • PEG ratio at 2.45 suggests growth is already priced in.
  • Quarterly profit decline (-6.68%) raises short-term earnings concerns.

Company Negative News

  • Decline in FII holdings (-0.21%) signals cautious foreign sentiment.
  • Quarterly PAT dropped from ₹122 Cr. to ₹99 Cr.

Company Positive News

  • Increase in DII holdings (+0.06%) reflects domestic institutional confidence.
  • Stable EPS at ₹17.6 supports long-term earnings visibility.

Industry

  • Industry PE at 41.4 indicates sector remains richly valued.
  • Financial services sector continues to benefit from rising retail participation in capital markets.

Conclusion

✅ CAMS shows steady technical momentum supported by strong fundamentals. Suitable for swing trades with entry near ₹770–₹780 and exit around ₹820–₹830. Long-term investors should be cautious of high valuations but can hold given strong ROE, ROCE, and low debt profile.

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