Motilal Oswal's research report on CAMS
CAMS posted a 4QFY23 net profit of INR744m (+1% YoY), 11% above estimate. Share of the Non-MF business rose in 4Q and is likely to grow further in FY24. Account Aggregator, AIF/PMS RTA and Insurance Repository are likely to be the revenue growth drivers in non-MF business. With most of the contracts being renegotiated, the company does not expect any large hit in case of any further cuts in TER by the regulator for AMCs. CAMS’ FY23 revenue came in at INR9.7b (+6.8%), whereas EBITDA/PAT stood flat at INR4.2b/ INR2.85b. The Board has declared an interim dividend of INR12 per share.
Outlook
Our estimates broadly remain unchanged and we reiterate our BUY rating with a TP of INR2,600 (premised on 32x P/E on FY25E earnings).
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