In-line performance, margin improves sequentially

Company
11 Mar 2024
5 Min read 
  • CAMS reported a net profit of INR885m in 3QFY24, in line with estimates.
  •  The growth in profitability was supported by an increase in non-MF business and equity AUM.
  •  CAMS expects 20%+ revenue growth in non-MF business and plans to spend on platform building.
  •  The company has a BUY rating with a target price of INR3,450.
  •  CAMS has a strong market share in the MF industry and is expected to increase its share in non-MF revenue.
  •  Margins are expected to improve in the next few quarters, especially in the non-MF segment.
  •  CAMS has a premium valuation compared to listed AMCs due to its duopoly position and customer ownership.
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