Buy CAMS; target of Rs 2700: Motilal Oswal

Motilal Oswal is bullish on CAMS recommended buy rating on the stock with a target price of Rs 2700 in its research report dated August 03, 2023.

Broker Research

August 06, 2023 / 22:17 IST

Buy

26 Aug, 2025 12:21

Volume

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Motilal Oswal's research report on CAMS

In FY23, CAMS expanded Aits clientele by welcoming two new clients for its Registrar and Transfer Agent services: 1) Helios Mutual Fund and 2) Navi Mutual fund. Moreover, CAMS successfully facilitated the transition of L&T Mutual Fund’s assets to HSBC Mutual Fund, and oversaw the transferred control of IDFC Mutual Fund to Bandhan Mutual Fund. During the year, CAMS successfully managed multiple large New Fund Offers for Mutual Fund houses. CAMS-serviced funds garnered 71% of the NFO collections and supported new MF folios to touch INR13m in FY23. CAMS has a 61% market share in new SIP registrations. CAMSPay emerged as the preferred payments partner with ~0.8m payments processed for FY23. The in-principle authorization from RBI (in Feb’23) to operate as a Payment Aggregator would widen the scope and coverage of CAMSPay.

Outlook

With favorable macro triggers and right investments, non-MF share of revenues for CAMS is expected to increase from 10% to 15% in the next three to five years. Currently, we have a BUY rating on the stock with a target price of INR2,700 at a P/E multiple of 33x on FY25 earnings.

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