Motilal Oswal's research report on CAMS
CAMS derives ~12% of its revenue from the non-MF segments, such as AIF/PMS RTA, CAMSPay, Think360, CAMS KRA, and CAMSRep. However, these businesses are set to register higher-than-MF segment growth over the next couple of years. AIF/PMS RTA: Over the past couple of years, affluent investors have been increasing their allocations to AIF/PMS products. Resultantly, non-EPFO PMS AUM/AIF funds registered a 22%/20% CAGR over the period. CAMS commands ~50% market share among funds utilizing RTA services. Demand for RTA services from these funds is expected to grow at a robust pace, propelled by: 1) increasing adoption of RTA services by existing funds, and 2) a spike in launches. CAMSPay: The share of digital transactions has been increasing for AMCs and this could result in a healthy CAGR for CAMSPay, which is a key player in this segment. Additionally, it plans to expand the use cases to other financial segments.
Outlook
There is a sustained focus on expanding the Non-MF businesses with an aim to increase their share to 20% going ahead. Currently, we have a BUY rating on the stock with a TP of INR3,450 (based on 32x FY26 earnings).
For all recommendations report, click here
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