CAMS is priced at premium to mutual fund stocks. Why should investors consider it?
Given the robust return ratios and CAMS’ vantage positioning, the premium valuation will sustain
May 27, 2021 / 09:09 PM IST
Computer Age Management Services Ltd | The share price has surged 126 percent to 2783.00 on July 1, 2021, from its issue price of Rs 1230. It was listed on exchanges on October 1, 2020, with an issue size of Rs 2244 crore.
PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook
There has been a deluge of public issues in the past one year. Among the new listings in FY21, the performance of Computer Age Management Services (CAMS) (CMP: Rs 2,422; Mcap: Rs 11,823 core) stands out. The stock has almost doubled from its issue (IPO) price of Rs 1,230 in less than 9 months, outperforming the broad equity market by a huge margin.
In comparison to the spectacular stock performance, the earnings of the largest registrar and transfer agent (RTA)...