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CAMS to facilitate issuance of all digital insurance policies, stock zooms 5%

IRDAI (Insurance Regulatory and Development Authority of India) has mandated the issuance of insurance policies by insurance companies in electronic form with effect from April 1.

April 02, 2024 / 15:23 IST
According to the brokerage, from a long-term perspective, the structural tailwinds in the MF industry will continue to drive AUM growth, translating into a strong absolute growth in MF revenue for CAMS.
     
     
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    Shares of CAMS rallied over 5 percent around mid-day after it was reported that the company will manage the issuance of all digital insurance policies. At 12:30pm, the stock was trading at Rs 3,145.75.

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    In an exchange filing on April 2, CAMS said that the IRDAI (Insurance Regulatory and Development Authority of India) has mandated the
    issuance of insurance policies by insurance companies in electronic form with effect from April 1. CAMS Insurance Repository Services Limited, which is an IRDAI-registered insurance repository, will be facilitating the issuance of policies in the electronic mode. CAMSREP is a wholly owned
    subsidiary of CAMS and is the second largest repository in the
    country.

    Also read: March 31 deadline: MF investors must re-do KYC or be blocked from all transactions

    In a recent report, Motilal Oswal analysts reiterated a 'buy' call for the stock. According to the brokerage, from a long-term perspective, the structural tailwinds in the MF industry will continue to drive the AUM growth, translating into a strong absolute growth in MF revenue for CAMS.

    CAMS has also seen investments in its non-mutual-fund business over the past couple of years, which the brokerage estimates will lead to an improvement in the share of revenue to 20 percent over the next five years.

    MOSL has a target price of Rs 3,450 and a P/E multiple of 32x on FY26 earnings. CAMS or Computer Age Management Services Limited is a mutual fund transfer agency serving Indian asset management companies.

    Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

    Moneycontrol News
    first published: Apr 2, 2024 01:00 pm

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