business

CAMS | This stock is the best proxy play for rising inflows into equity funds

CAMS is technology-driven financial infrastructure and services provider to mutual funds and other financial institutions. MFs is the key segment for the company and accounts for around 87% of its revenues. CAMS market share as RTA (registrar and transfer agent) has increased from 61% in FY15 to 68% as at end September 24 in terms of average monthly AUM serviced by it. There are very less risks to its existing market share as it is challenging for its clients or new competition to replicate the physical network or the technology platforms. Moreover, switch to competition is rare as CAMS enjoys long-standing relationships with MFs. CAMS has entered into other business lines to diversify its revenue. Other businesses includes accounts aggregator, payments aggregator (CAMSPAY), servicing AIFs/PMS, loans against MF, central record keeping agency (CRA) for National Pension Scheme (NPS), insurance repository and e-KYC business.

first published: Nov 7, 2024 08:16 am