Computer Age Management Services (CAMS) share price gained 2 percent intraday on October 5 after foreign investors lapped up shares of the registrar and transfer agent for mutual funds that recently debuted on the bourses.
Goldman Sachs Asset Managment-A/C Goldman Sachs Emerging Market Equity Fund, G S A Mgt LP-A Dev Of G S Co A/C G S Funds Sicav-G S Global Markets Equity Portfolio, Smallcap World Fund Inc, Fidelity Advisor Series VIII Fidelity Advisor Emerging Asia Fund, Fidelity Investment Trust A/C, Fidelity Southeast Asia Fund and Canara Robeco Mutual Fund bought 32,56,255 CAMS shares on October 1, according to data available on the exchanges.
CAMS opened for trading day on October 1 at Rs 1,518, 23.4 percent over the issue price of Rs 1,230.
Analysts advise investors to hold the stock either in full or partial quantity, given the strong business market share, asset-light business model, expected growth going ahead and no direct listed peer, though the company's growth is linked to AUM of mutual funds.
India's largest registrar and transfer agent of mutual funds, CAMS has an aggregate market share of 70 percent based on mutual fund average assets under management (AAUM).
During FY17-20, CAMS' revenue grew at a 14 percent CAGR, EBITDA 13 percent and profit 12 percent. The balance sheet is lean with zero debt and negative working capital, thus resulting in healthy return ratios (FY20 RoE/RoCE at 35/37 percent).
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