SEBI Reg. Investment Advisor

Download App

MoneyWorks4Me

Check Before You Invest : Computer Age Management Services Ltd

BSE: 543232 NSE: CAMS ISIN: INE596I01020
  |   Sector:  IT & ITES   |   Industry:  Depository Services

Snapshot

Q.1 Which industry/sub-sector does Computer Age Management Services Ltd belong to?
Computer Age Management Services Ltd belongs to the IT & ITES sector, operating specifically within the Depository Services segment.
Q.2 Is Computer Age Management Services Ltd a good quality company?
Computer Age Management Services Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Computer Age Management Services Ltd undervalued or overvalued?
Computer Age Management Services Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 40.08 42.40
Price to Book 14.44 16.29
Price to Sales 12.58 13.14
EV to EBITDA 25.4 26.82
Q.4 Is Computer Age Management Services Ltd a good buy now?
Computer Age Management Services Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Computer Age Management Services Ltd?
Computer Age Management Services Ltd revenue growth is 25.2% for FY-2025, which is above its 5-year CAGR of 15.25%, indicating faster growth.

Q.2 Gross Profit margin of Computer Age Management Services Ltd?
Computer Age Management Services Ltd Gross profit margin which is the profit after deduction of direct costs, is 49% for FY-2025, which is in line with its 5-year median of 47.3%, indicating stable margins.

Q.3 Operating Profit Margin of Computer Age Management Services Ltd?
Computer Age Management Services Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 45.87% for FY-2025, which is in line with its 5-year median of 44.44% indicating stable margins.

Q.4 Net Profit Margin of Computer Age Management Services Ltd?
Computer Age Management Services Ltd Net Profit Margin is 32.67% for FY-2025, is above its 5-year median of 30.88%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 49 47.3
Operating Profit Margin (%) 45.87 44.44
Net Profit Margin (%) 32.67 30.88

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Computer Age Management Services Ltd?
Computer Age Management Services Ltd Return on Asset is 31.19%, which is above its 5-year historical median of 21.59%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Computer Age Management Services Ltd?
Computer Age Management Services Ltd Return on capital employed is 61.67% for FY-2025, which is above its 5-year historical median of 56.01%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.7 Return on Equity (ROE) of Computer Age Management Services Ltd?
Computer Age Management Services Ltd Return on equity is 48.11% for FY-2025, which is above its 5-year historical median of 44.15%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Computer Age Management Services Ltd?
Computer Age Management Services Ltd Cash conversion cycle is -16 days, above its 5-year historical median of -20 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.95 0.74
ROE (%) 48.11 44.15
ROCE (%) 61.67 56.01
Cash Conversion Cycle -16 days -20 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Computer Age Management Services Ltd?
Computer Age Management Services Ltd Debt-to-Equity ratio is 0.00, which is in line with the industry average of 0.00, indicating similar to debt levels in the industry.

Q.10 Debt to cash flow from operations of Computer Age Management Services Ltd?
Computer Age Management Services Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Computer Age Management Services Ltd?

Q.1 Promoter shareholding and pledge status of Computer Age Management Services Ltd?
Promoters hold 0.00% of the Computer Age Management Services Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Computer Age Management Services Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Computer Age Management Services Ltd vs industry peers?
Computer Age Management Services Ltd revenue CAGR is 15.25%, compared to the industry median CAGR of 19.65%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 25.2 19.7
Gross Profit Growth (%) 29.6 30.6
Operating Profit Growth (%) 29.1 25.5
Net Profit Growth (%) 32.5 31
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.95 0.45
ROE (%) 48.11 28.83
ROCE (%) 61.67 36.42
Cash Conversion Cycle (days) -15.81 -18

Valuation & price assessment

Q.1 Stock return of Computer Age Management Services Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 9.51% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- 9.5% 21.2% -2.2%
Q.2 Valuation ratios of Computer Age Management Services Ltd vs historical?
The current P/E ratio of 40.08 is lower than its historical median of 42.40, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 40.08 42.40 51.41
Price to Book 14.44 16.29 12.97
Price to Sales 12.58 13.14 21.24
EV to EBITDA 25.4 26.82 35.82

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

×