Rs. 25 Interim Dividend & Rs. 10.50 Special Dividend: 8 November Record Date; Buy To Unlock Gain?

The largest mutual fund transfer agency in India offering MF Services & Statements is Computer Age Management Services Limited (CAMS). service provider for banks, NBFCs, insurance companies, and AIFs. For more than 25 years, CAMS has been a technology-driven provider of financial infrastructure and services to mutual funds and other financial organisations. As of July 2024, CAMS, the industry's top Registrar and Transfer Agency for mutual funds in India, serves around 68% of the average assets under management. Additionally, it offers insurance companies and alternatives technology-enabled service solutions. CAMS offers a range of customer service channels, including a pan-India network of service centres, white label call centres, web, mobile apps, and chatbots, in addition to its role as a business-to-business service partner.

CAMS Dividend

"The record date for Interim Dividend of Rs. 25.00 (including special dividend of Rs. 10.50)/­ per equity share, recommended by the Board at the meeting today will be 08! November 2024," said the company in a stock exchange filing.

CAMS Financials

For the quarter ending in September 2024, CAMS recorded a 45 percent rise in profit after tax to Rs 122.5 crore. In the same quarter of the previous fiscal year, its profit after tax (PAT) was Rs 84.51 crore. According to a statement released by the firm, its sales increased by 33% to Rs 365.17 during the July-September quarter of the current fiscal year (FY25) from Rs 275 crore during the same time last year. Consolidated revenue for the first half of FY25 was Rs 696.57 crore, up 30% from the previous year, while profit after tax (PAT) increased 43.4% to Rs 230.68 crore.

Mr. Anuj Kumar, Managing Director said, "I am very happy to share the company's stellar performance across all financial dimensions for the second quarter FY 24-25. Strong revenue growth at 32.7% Y-o-Y and 10.2% Q-o-Q was complemented with exemplary operating EBITDA at 46.9%. On the back of robust top line growth and strong EBITDA margins, we recorded an impressive PAT of Rs.122 Cr, growing ~45 % Y-on-Y."

"The second quarter was marked by historic highs and key milestones across multiple operating dimensions for Mutual Funds serviced by CAMS. Our overall assets under service touched a lifetime high of ~ Rs.45 lakh Cr with the quarter recording the highest ever asset accretion. Strong retail participation in equity assets via SIPs and NFOs catapulted our equity net-sales to touch nearly Rs. 1 lakh Cr during the second quarter and record a staggering 59% Y-o-Y growth in equity asset base. Individual investors' participation remained vigorous, and we added 1.2 Cr SIPs and 30 lakh investors to our base to touch 3.7 Cr unique investors," he stated.

"Revenue from businesses beyond Mutual Funds posted a noteworthy growth of 7 % in sequential quarters and ~ 32 % on a Y-o-Y basis. We continue to strengthen our differentiated offerings for Alternatives and in the CAMSKRA business, both of which saw significant client wins and robust revenue growth of 21% and 56% Y-o-Y respectively. CAMSPay's play in digital payments expanded significantly and recorded 69% Y-o-Y revenue growth. Bima Central, an industry first mobile app for Insurance portfolio management, is gaining traction with insurers and policy holders with a 2.5 Lakh user base. In the Account aggregator space, we continued to hold market share in customer linked accounts (to AA) to touch 16.5% share as against 9.6% in Q2 previous year," Mr. Anuj Kumar further added.

CAMS Share Price Target

Hardik Matalia - Derivatives Analyst at Choice Broking said, "CAMS is currently trading within a range of Rs 4,300 - Rs 4,450, maintaining a strong overall uptrend with a well-defined sequence of higher highs and higher lows, signalling sustained bullish momentum. Recently, the stock entered a consolidation phase, forming a potential continuation pattern. This pattern may indicate either a resumption of the uptrend or the possibility of a trend reversal. A sustained close above Rs 4,500 would confirm a reversal, potentially unlocking further gains with a short-term target of Rs 4,900."

"On the downside, immediate support is positioned at Rs 4,300, providing a buffer for bullish positions. To manage risk, a stop-loss at Rs 4,200 is recommended to safeguard against unexpected downward movement. The Relative Strength Index (RSI) stands at 49.15, suggesting a stable outlook as it consolidates in the mid-range. Overall, CAMS appears to be consolidating within a broader uptrend, supported by a positive technical structure, including a bullish EMA alignment and a favourable RSI level. A close above Rs 4,500 would reinforce bullish momentum and likely drive the stock toward the Rs 4,900 target," the analyst commented.

Disclaimer

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