Buy CAMS; target of Rs 4900: Motilal Oswal

Motilal Oswal's research report on CAMS

CAMS reported operating revenue of INR3.8b in 2QFY26 (in line), up 3% YoY, driven by 3% YoY growth in MF asset-based revenue of INR2.8b. For 1HFY26, revenue came in at INR7.3b, +5% YoY. Total operating expenses grew 7% YoY to INR2.1b (in line). Employee expenses/ other expenses grew 5%/10% YoY to ~INR1.2b/INR843m. EBITDA came in at INR1.7b, down 2% YoY, reflecting an EBITDA margin of 44.5% (vs. 46.6% in 2QFY25 and our est. of 45%). For 1HFY26, EBITDA came in at INR3.2b, +1% YoY. PAT was down 6% YoY at INR1.1b (in line), with PAT margins of 30.2% (vs. 33.1% in 2QFY25). For 1HFY26, PAT came in at INR2.2b, down 3% YoY.

Outlook

We reiterate a BUY rating on the stock with a one-year TP of INR4,900, premised at a P/E multiple of 40x on Sep’27E earnings.