CAMS reported a net profit of INR757m, a growth of 17% YoY. PAT for the quarter fell 5% short of our estimates. The share of Non-MF business improved in 1QFY24 and is expected to continue increasing throughout FY24. Operating revenue reached INR2.6b, up 10.4% YoY and 4.8% QoQ, in line with our estimates. Account Aggregator, AIF/PMS RTA and Insurance Repository are likely to be the drivers for growth in the non-MF business share of revenues. With most of the contracts re-negotiated, the company does not expect any large hit in case of any further cuts in TER by the regulator for AMCs.
OutlookCurrently, we have a BUY rating on the stock with a target price of INR2,800 at a P/E multiple of 35x on FY25 earnings.
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