Computer Age Management Services Ltd - Stock Valuation and Financial Performance

BSE: 543232 | NSE: CAMS | Depository Services | Small Cap

Computer Age Man Share Price

3,377.20 -148.20 -4.20%
as on 11-Feb'25 16:59

DeciZen - make an informed investing decision on Computer Age Man

Overall Rating
Bole Toh

1. Quality

2. Valuation

Overvalued

3. Price Trend

Computer Age Management Services stock performance -

mw4me loader
P/E Ratio (CD):
37.89
Market Cap:
17,417.4 Cr.
52-wk low:
2,707
52-wk high:
5,367.5

Is Computer Age Management Services Ltd an attractive stock to invest in?

1. Is Computer Age Management Services Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Computer Age Management Services Ltd is a good quality company.

2. Is Computer Age Management Services Ltd undervalued or overvalued?

The key valuation ratios of Computer Age Management Services Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.

3. Is Computer Age Management Services Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Computer Age Management Services Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Computer Age Man:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Computer Age Management Services Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good

Value Creation

Value Creation Index Colour Code Guide

Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
ROCE % 42.5%45.1%49.7%53.7%46%51.3%53%67%54.3%56%-
Value Creation
Index
2.22.32.73.02.42.72.94.03.03.2-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 3843984786426947007069109721,1371,377
Sales YoY Gr.-3.7%20.2%34.1%8.1%0.9%0.8%28.9%6.8%17%-
Adj EPS 15.619.524.72825.333.138.957.256.169.493
YoY Gr.-25.4%26.2%13.8%-9.9%30.8%17.7%47%-2%23.8%-
BVPS (₹) 60.574.785.292.292.7111.8103.4126.1148.9175.1233.7
Adj Net
Profit
7695.3120137123161190280275341460
Cash Flow from Ops. 76.4107112151162199264321318401-
Debt/CF from Ops. 0000000000-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 12.8%10.4%17.2%17%
Adj EPS 18.1%22.4%21.3%23.8%
BVPS12.5%13.6%19.2%17.7%
Share Price - - 10.1% 16.3%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
Return on
Equity %
2728.930.831.627.332.235.748.138.440.245.5
Op. Profit
Mgn %
35.538.538.936.631.54142.146.443.444.446.2
Net Profit
Mgn %
19.82425.321.417.82326.930.728.229.833.4
Debt to
Equity
0000000000-
Working Cap
Days
5853135206246284315282194106139
Cash Conv.
Cycle
-40-32-31-23-18-17-25-28-20-1699

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 45.50%

Sales growth is growing at healthy rate in last 3 years 17.23%

Net Profit is growing at healthy rate in last 3 years 21.26%

Sales growth is good in last 4 quarters at 27.95%

No data to display

Latest Financials - Computer Age Management Services Ltd.

Standalone Consolidated
TTM EPS (₹) 87.4 93
TTM Sales (₹ Cr.) 1,285 1,377
BVPS (₹.) 224.1 233.7
Reserves (₹ Cr.) 1,058 1,105
P/BV 15.73 15.09
PE 40.33 37.89
From the Market
52 Week Low / High (₹) 2706.95 / 5367.45
All Time Low / High (₹) 1260.00 / 5367.45
Market Cap (₹ Cr.) 17,417
Equity (₹ Cr.) 49.4
Face Value (₹) 10
Industry PE 52.4

Management X-Ray of Computer Age Man:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

CAMS: Q2 FY25 Result Update - 04 Nov 2024

CAMS reported one of its best quarterly results achieving a revenue growth of 32.9% YoY with contributions from both Mutual Fund and Non- Mutual fund segments. Margins improved by 240 basis points to reach 47%.

Particulars

Amt (Rs. Cr.)

YoY Trend

Comments

Revenue

365

32.70%

Sustained focus on expanding Non-MF business led to increase in revenue share to 12.9% 

EBITDA

199

38%

 

EBITDA Margin

47%

+ 240bps

Margin expansion due to operating leverage

PAT

120

45%

 

CAMS experienced the fastest quarterly growth in overall Assets under Management (AUM), adding Rs. 4.9 trillion during the quarter, reaching Rs. 45 trillion as of September 2024. The company outperformed the industry in attracting equity AUM, increasing SIP collections and growing the count of unique investors.

The KRA and CAMS Pay segments primarily drove the revenue growth in the Non-MF segment. This quarter, the company digitized over 1 million insurance contracts. The digitization initiative has the potential to digitalize 590 million paper insurance contracts.

Management Guidance: The Company has maintained its guidance of 20% revenue growth for the foreseeable future. However, the 30% growth observed this quarter is expected to be a one-off occurrence and normalization might take place after a few quarters. Management anticipates that margins will further improve to 47.5%. 

CAMS: Q1FY24 Result Update - 07 Aug 2023

Particulars

Q1FY24

YoY Trend

Comments

Revenue

244

+8%

AUM Market Share increases from 68.3% to 68.7% QoQ. Equity component:  46.5% (Q1 FY23: 43.2% / Q4 FY23: 46.5%)

EBITDA

106

+12%

 

EBITDA Margin

43.4%

+170 bps

Operating leverage benefits

PAT

73.2

+18%

 

Good result on all parameters, sustaining performance with healthy focus on new product additions.

 

CAMS- A play on Financialization of Indian Savings - 03 Apr 2023

Recommendation: BUY 

Detailed Intiating Coverage Note: Click Here

MoneyWorks4me Opinion: CAMS is one of the beneficiaries of the financialization theme of India. CAMS is an established market leader with ~70% market share and is an integral part of Indian MF industry. Growing awareness of MF as a saving instrument for long term individual goals is a tailwind for the growth of industry. We have seen undisrupted retail flows that have kept the Indian markets from falling despite of heavy FII selling. We see this as a structural trend and expect this to continue as the MF penetration grows well beyond current 16%. As compared to AMCs, CAMS is a safer play on this story since no matter which AMC benefits, CAMS tends to benefit it provides service to most of its AMCs.

 

Computer Age Management Services Ltd : Quarterly Result - 16 Nov 2022

Computer Age Management Services Ltd

Market Cap 11,545 Cr

CMP 2,356

P/E 40.6xFY23

 

Results

INR Cr.

YoY Growth

Comments

Revenue        

242.4

6.3%

Steady rise across all segments

EBITDA

106.1

0.3%

Margins decline by 2.4% to 43.8%, due to Service cost increase

 

Check 10 year X-ray here

Key Highlights -

  • CAMS saw increase of 5.9% in Mutual Fund (MF) servicing, with average asset under management (AAUM) at 27.1 lakh Cr on yearly basis.
  • AAUM Market Share was stable at 69%, during the quarter CAMS won 5 of 10 new MF schemes with AUM of 45,134 Cr vs. other Registrar transfer agent with AUM of 10,293 Cr.
  • Equity Mix of MF AUM increased by 5.7% to 45% on yearly basis, this segment charges higher fee.
  • CAMS WealthServ which serves Alternative Investment Fund/Portfolio Management Service clients (AIF/PMS) revenue grew by 32% on yearly basis, with 19 new client wins in Q2FY23.
  • PAT declined by 0.6% to 72.14 Cr on yearly basis due to higher operating expenses.

 

Management Outlook -

  • Management targets to reach 100 AIF/PMS customers in CAMS WealthServ segment.
  • Management guided on maintaining operating margins in early 40% range.

CAMS- A play on Financialization of Indian Savings - 07 Nov 2022

About the Company

CAMS is a financial infrastructure and services provider to Mutual Funds and other financial institutions. The Company is leading Registrar and Transfer Agency (RTA) to the Indian Mutual Fund industry with ~70% market shareand has a strong presence in the AIF and PMS RTA segment (50% market share among funds utilizing RTA services).

The company currently provides technology-based services including dividend processing, transaction origination interface, payment transaction execution, intermediary empanelment, report generation, investor interface, settlement and reconciliation, compliance-related services, and brokerage computation.

The Co. services top AMCs with over 18 years average relationship with 10 largest clients. The key clients for mutual funds services business include HDFC Asset Management Company, ICICI Prudential Asset Management Company, Aditya Birla Capital, SBI Fund Management, DSP Investment Managers, Kotak Mahindra Asset Management Company, and Franklin Templeton Asset Management.

The company has Pan-India physical network comprising 272 service centres spread over 25 states and 5 union territories.

Revenue Model

CAMS charges a fixed fee based on the AUM managed by the AMCs. Higher the AUM of its customers, the higher is the revenue for CAMS.

Mutual Fund Asset Based - CAMS charges MF fee based on AUM for registrar services it provides. This segment is directly linked to asset managed by AMCs. Company hasfour out of the five largest MFs as well as 10 of the 15 largest MFs as its customers based on Average AUM.

Mutual Fund Non- Asset Based – Company provides various value added services to MF players like customer-care services and paper based MF processing.

Non Mutual Fund – Services provided to PMS/AIFs, Account Aggregator platform, Insurance repository and Central Record keeping for National Pension Scheme (NPS) comprise of non-mutual fund revenue.

Cost Structure & Profit Margin (as a % of sales) -

CAMS is a service business, hence has an asset light model. The major cost is employee cost which forms around 30-35% of revenues. It enjoys net profit margins of 25-35% range making it a high ROE business. Such businesses with fixed costs and increasing revenues enjoy a benefit of operating leverage as costs as a % of revenues decrease with increasing revenues.

Financials

CAMS has low debt and good cash flow. Revenues have grown at a CAGR of 14% in last 5 years from FY17 to FY22. The margins have improved with increase in sales (due to growing AUM).

Management

Mr. Anuj Kumar is the Managing Director & CEO of CAMS. He joined CAMS after 25 years of professional experience with Godrej & Boyce Mfg. Co. Ltd., Blow Plast Limited, Escorts Finance Limited, Bill Junction Payments Limited, IBM India Private Limited and Concentrix Daksh Services India Private Limited.

He holds a Bachelor degree in Mechanical Engineering from Birla Institute of Technology, Ranchi and a Post Graduate Diploma in Management (PGDM) from IIM, Kolkata.

Future Prospects

  • CAMS is a direct play on the growing financialization of savings in India. It is a key enabler for digitization in the MF industry. With MF penetration in India at just 16% as against the global average of 63%, it can grow at strong 15% CAGR in AUM for the industry in the coming decade.
  • As India moves towards digitalization of Insurance (also underpenetrated), provides CAMS with another market for growth. Being RBI regulated Account aggregator will allow CAMS into positioning itself as platform required by both Financial Institutions and customers for ease and transparent financial data communication.
  • RTA being duopoly market and rigorous process to switch with few incremental gains along with regulatory requirements makes CAMS well situated. Being supported by increasing household savings in Financial Asset (Mutual fund to GDP ratio at 16% vs. global average of 74%), making CAMS a bet on Indian Mutual fund industry.
  • The Account Aggregator business has the potential to revolutionize lending and financial planning, the way UPI did for payments. Given its strong technological capabilities and expertise in handling large databases, CAMS can be among the top five players in this segment providing services to the players in this segment.

Risk

  • Lower than expected savings allocation into equity markets and mutual funds.
  • Higher MF concentration, loss of a single customer can negatively impact the business as 67% of its revenue is concentrated in its top five clients.
  • CAMS maintain critical data records for investors on behalf of its clients. A financial liability may arise for CAMS in case of any data security breach.
  • Any technological disruption or data security issue. Also any change in technology can lead to CAMS spend a big amount on technology upgradation.

Key Ratios of Computer Age Man

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Sales3843984786426947007059109721,137
Operating Expenses 248245292409476413431493551632
Manufacturing Costs1231691021159585101122150
Material Costs0000000000
Employee Cost 115140163226275258262322358397
Other Costs 121745981866083717085
Operating Profit 136153186233218286275416421505
Operating Profit Margin (%) 35.5%38.4%38.9%36.3%31.4%40.9%39.0%45.8%43.3%44.4%
Other Income 7142522182151252741
Interest 01000108788
Depreciation 24181723285143526070
Exceptional Items 0000000000
Profit Before Tax 119147194232207247274383380467
Tax 394966827275699696116
Profit After Tax 8098127150135172205287285351
PAT Margin (%) 20.8%24.7%26.6%23.3%19.5%24.6%29.1%31.5%29.3%30.9%
Adjusted EPS (₹)16.420.125.930.627.635.242.158.758.272.0
Dividend Payout Ratio (%)54%54%51%49%81%35%150%66%65%65%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24

Equity and Liabilities

Shareholders Fund 295364416450452545505617729861
Share Capital 49494949494949494949
Reserves 246315367401403496456568680812
Minority Interest6788800011
Debt0000000000
Long Term Debt0000000000
Short Term Debt0000000000
Trade Payables20252935363653494365
Others Liabilities 6044279397511664780884314474
Total Liabilities 3824407318891,0071,2451,3371,5501,0871,401

Fixed Assets

Gross Block259261279319349482488567627736
Accumulated Depreciation616982102126173204253294360
Net Fixed Assets198192197217223309284314333376
CWIP 00000000913
Investments 105177222218233306236317330407
Inventories0000000000
Trade Receivables3101223273229263365
Cash Equivalents 201415284450180151152211
Others Assets5646285405481547608742231329
Total Assets 3824407318891,0071,2451,3371,5501,0871,401

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Cash Flow From Operating Activity 76107112151162199264321318401
PBT 119147194232207247274383380467
Adjustment 175-72104436676756
Changes in Working Capital -179-12620-921-20-33-32
Tax Paid -43-54-62-89-76-83-67-108-96-89
Cash Flow From Investing Activity -35-56-40-30-32-842-131-102-188
Capex -46-11-22-39-35-15-27-62-44-38
Net Investments 17-47-20131-5728-72-53-120
Others -622-41-1214-4-30
Cash Flow From Financing Activity -36-57-72-117-132-97-272-203-205-224
Net Proceeds from Shares 00000028714
Net Proceeds from Borrowing 0000000000
Interest Paid 00000-10-8-7-8-8
Dividend Paid -30-57-72-116-132-72-249-189-185-206
Others -60000-15-17-15-20-23
Net Cash Flow 5-605-318-6-1312-10
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Ratios
ROE (%)28.4329.8932.6134.629.9934.4839.1151.1942.344.15
ROCE (%)42.5145.0849.6953.6746.0451.2853.046754.2656.01
Asset Turnover Ratio1.030.970.820.790.730.620.550.630.740.91
PAT to CFO Conversion(x)0.951.090.881.011.21.161.291.121.121.14
Working Capital Days
Receivable Days36810131516111116
Inventory Days0000000000
Payable Days0000000000

Computer Age Management Services Ltd Stock News

Computer Age Management Services Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Computer Age Man on 11-Feb-2025 16:59 is ₹3,377.2.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 11-Feb-2025 16:59 the market cap of Computer Age Man stood at ₹17,417.4.
The latest P/E ratio of Computer Age Man as of 11-Feb-2025 16:59 is 40.33.
The latest P/B ratio of Computer Age Man as of 11-Feb-2025 16:59 is 15.73.
The 52-week high of Computer Age Man is ₹5,367.5 and the 52-week low is ₹2,707.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Computer Age Man is ₹1,285 ( Cr.) .

About Computer Age Management Services Ltd

The company was incorporated as ‘Computer Age Management Services Private Limited’ on May 25, 1988 at Madras, Tamil Nadu as a private limited company under the Companies Act, 1956, and was granted the certificate of incorporation by the Registrar of Companies, Tamil Nadu at Chennai (RoC). The company became a deemed public limited company under section 43A of Companies Act, 1956 on April 15, 2000 and the name of the company was changed to ‘Computer Age Management Services Limited’ and the certificate of incorporation of the company was endorsed by the RoC to that effect. The company became a private limited company, pursuant to Section 43A (2A) of Companies Act, 1956 with effect from March 29, 2001 and the name of the company was changed back to ‘Computer Age Management Services Private Limited’. The certificate of incorporation of the company was again endorsed by the RoC to that effect. Subsequently, the company was converted from a private limited company to a public limited company, pursuant to a special resolution passed by the company Shareholders at the EGM held on September 9, 2019 and the name of the company was changed to Computer Age Management Services Limited (CAMS). Consequently, a fresh certificate of incorporation was issued by the RoC on September 27, 2019.

CAMS is a technology driven financial infrastructure and services provider to Mutual Funds and other financial institutions for over two decades. The company also provides technology enabled service solutions to Alternative Investment Funds and Insurance Companies. Besides serving as a B2B service partner. It also serves customers through a variety of touch points such as pan-India network of service centres, white label call centre, online, mobile app and chatbot.

Business area of the company

The company is a technology-driven financial infrastructure and services provider to mutual funds and other financial institutions with over two decades of experience. With the initiative of creating an end-to-end value chain of services, the company has grown its service offerings and currently provide a comprehensive portfolio of technology based services, such as transaction origination interface, transaction execution, payment, settlement and reconciliation, dividend processing, investor interface, record keeping, report generation, intermediary empanelment and brokerage computation and compliance related services, through its pan-India network to its mutual fund clients, distributors and investors. It also provides certain services to alternative investment funds, insurance companies, banks and non-banking finance companies. The nature of company’s services to mutual funds spans multiple facets of their relationship with their investors, distributors and regulators. By providing a range of services, it plays an important role in developing and maintaining its clients’ market perception.

Service Solutions for Businesses

  • Mutual Funds
  • Reconciliations
  • Loan Against Mutual Funds
  • Payments
  • AIF & PMS
  • Account Aggregator
  • Central Recordkeeping Agency
  • KYC Services
  • Insurance Companies

Awards, accreditations and recognitions:

  • 2015: The company was awarded ‘Best App’ for ‘myCAMS’ app under finance category at the Global Mobile App Summit and Awards.
  • 2016: The company was awarded SME Business Excellence Awards in mid-corporate IT and IT-enabled services category by Dun and Bradstreet and RBL Bank.
  • 2016: The company was awarded ‘Best App’ for ‘myCAMS’ app under finance category at the Global Mobile App Summit and Awards.
  • 2017: The company was awarded ‘Best use of digital media/platform’ in the mutual fund category for ‘myCAMS’ app at the Drivers of Digital Awards.
  • 2017: The company was awarded ‘Best App’ for ‘myCAMS’ app under finance category at the Global Mobile App Summit and Awards.
  • 2018: The company was awarded ‘Special Mention for Use of Digital Media in the Mutual Fund Category’ for ‘GoCorp’ app at the Drivers of Digital Awards 2018.
  • 2018: The company was awarded ‘Best Application of Technology’ for ‘myCAMS’ app at 4th edition of CX Strategy Summit and Awards.
  • 2019: The company was awarded ‘Highly Commended - Harnessing the Power of Technology’ at the Adam Smith Awards Asia 2019.
  • 2021: Finnoviti Award 2021 - CAMSPay for their Solution & Innovation.

Major events and milestones:

  • 1988: The company was incorporated as Computer Age Management Services and received a certificate of incorporation from the RoC on May 25, 1988.
  • 1993: The company was issued a certificate of registration as a Registrar to an Issue under category II, dated December 24, 1993 by SEBI.
  • 1995: The certificate of registration was issued to the company was upgraded and a fresh certificate of registration as Registrar to an Issue and Share Transfer Agent under category I, dated July 22, 1995, was issued by SEBI to the company.
  • 2006: The company was issued a certificate of registration dated June 1, 2006 by SEBI to act as a depository participant for NSDL.
  • 2007 The company was issued a certificate of registration dated January 31, 2007 by SEBI to act as a depository participant for CDSL.
  • 2011: CIRSL was incorporated on May 12, 2011.
  • 2011: CIRSL had received in-principle approval of IRDAI to carry on business as an insurance repository.
  • 2012: CISPL was incorporated on February 13, 2012.
  • 2012: CISPL was issued a certificate of registration dated June 29, 2012 to carry on the business as a KRA.
  • 2013: CIRSL was issued a certificate of registration dated July 31, 2013 by IRDAI to carry on the business as an insurance repository.
  • 2013: The company acquired 100% stake in SSPL, which provides technology support to the company.
  • 2016: CFISPL was incorporated on September 26, 2016.
  • 2018: Great Terrain acquired 37.50% stake in the company.
  • 2019: The company was converted into a public limited Company and received a fresh certificate of incorporation from the RoC on September 27, 2019.
  • 2019: Great Terrain acquired 6.03% stake in the company.
  • 2020: Appointed as registrar to issue and transfer agent by Franklin Templeton Asset Management (India) Private Limited.
  • 2020: Receipt of account aggregator license by CFISPL.
  • 2020: Launch of Recon Dynamix platform.
  • 2021: CAMS became the Registrar and Transfer Agent for Franklin Templeton Mutual Fund.
  • 2021: CAMS Financial information services - Account Aggregator activities were launched.
  • 2022: CAMS signed definitive agreements for acquiring controlling stake in Fintuple.
  • 2022: Launch of Central Recordkeeping Agency services for National Pension System.
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