Computer Age Management Services IPO – Review, Update
Update
Q1 FY 2022-23 Earnings
Computer Age Management Services Limited (CAMS) – India’s largest registrar and transfer agent of mutual funds has announced its financial results for the Quarter Ended 30th June 2022.
On a consolidated basis, the company’s revenue from operations stood at INR 236.65 Cr for the quarter ended 30 June 2022 which was INR 201.18 Cr for the same period last year, registering a growth of 17.63% Y-O-Y basis,
While on a quarter-on-quarter basis the revenue of the company de-grew by 2.69% (revenue of INR 243.18 Cr for the period ended 31 March 2022)
CAMS has registered other income of INR 44.36 Cr Q for Q1 FY2022-23,
Must Read: Nifty prediction for August 2022
Total Expenses of the Company –
INR 154.17 Cr as on 30 June 2022,
INR 120.70 Cr as on 30 June 2021,
INR 148.49 Cr as on 31 March 2022
PAT
Profit after Tax of the company stood at INR 64.60 crore for the Q1 ended 30 June 2022 as compared to INR 63.24 crore for the same period last year, a growth of 2.15% year-on-year basis,
While Q-O-Q PAT of the company de-grew by 12.51% (profit of INR 73.84 crore for the period ended 31 March 2022)
Dividend
The Board of the company has approved the payment of an interim Dividend of INR 6. 75/- share.
EPS (BASIC) stood as follows –
INR 13.24 as on 30 June 2022,
INR 12.95 as on 30 June 2021,
INR 15.10 as on 31 March 2022
MD’s Speech –
Commenting on the performance, Mr. Anuj Kumar (MD) said, We maintained our strong focus on operational excellence for the long term with continued investments in technology and people.
Despite the volatile market situation, individual investor confidence remained high with buoyant equity net inflows supported by predictable, strong SIP collections of nearly INR 7000 Cr every month. New SIPs clocking 10 lakh plus monthly registrations is another key trend pointing to mutual fund as the preferred route for long term investors.
Our share in AUM is at a robust 69% serving ten of the top fifteen mutual funds. Our equity AUM, despite the headwinds in the markets, expanded by 2.6% quarter on quarter while our overall AUM saw a marginal decline of 1.6%.
Daily Chart –
computer age management services share ends at INR 2360 (DOWN 3.39%) on the National Stock Exchange with a volume of 1,57,198 shares.
Final Comment: The Company has maintained its top-line despite challenging situations while the PAT was hit due to higher employee expenses. Finblab maintains positive view on the company because of its dominance position and strong market share.
Also Read: Q1 Numbers of Balkrishna Industries
19 September 2020
Computer Age Management Services Limited (CAMS) – a technology-driven financial infrastructure and services provider to mutual funds and other financial institutions is planning to raise INR 2244.33 Cr via IPO [all OFS]
CAMS: Company Profile
Computer Age Management Services (CAMS) was founded in the year 1988 by V Shankar as a start-up in the area of Software Development and Computer Education.
During Y2K, CAMS decided that the domestic financial services were the area on focus and the area of operation in managed services among the IT services.
Today, CAMS is a “Mutual Fund Transfer Agency” to the Indian AMCs (Asset Management Companies) with a share of 69.6 per cent of the assets under management (AUM).
CAMS is co-owned by –
- NSE Investments Limited,
- HDFC Bank group (a financial services conglomerate),
- Warburg Pincus LLC (a leading global private equity), and
- Acsys Investments Private Limited (the founding promoter)
CAMS: Business
With the initiative of creating an end-to-end value chain of services, CAMS has grown its service offerings and currently provides below listed technology-based services through its pan-India network to its mutual fund clients, investors, and distributors.
- transaction origination interface,
- transaction execution,
- payment,
- settlement and reconciliation,
- dividend processing,
- investor interface,
- record-keeping,
- report generation,
- intermediary empanelment and brokerage computation, and
- compliance related services,
Over the years, CAMS has leveraged its domain expertise, processes, and infrastructure to diversify its offering of services to cater to a variety of other financial services sectors.
- In the electronic payment collections services business, CAMS manage mandated transactions, including registering of mandates, initiation of collections, reconciliation, and the related reporting services for mutual funds, non-banking finance companies, and banks.
- In the insurance services business, CAMS offers processing of new business applications, holding policies in dematerialized form, servicing policies, and other support functions to insurance companies. For the financial year 2018, CAMS had a market share of 39 per cent of the insurance repository business, based on e-insurance policies being managed (according to the CRISIL Report)
- In the alternative investment funds services business, CAMS provides services to investors manage records and perform fund accounting and reporting, among other services, for an alternative investment, and other types of funds.
- In the banking and non-banking services business, CAMS offers digitization of account opening, facilitation of loan processing, and back-office processing services to banking, and non-banking financial institutions.
- In the KYC registration agency business, CAMS verify and maintain KYC records of investors for use by financial institutions.
- In the software solutions business, the technology team at CAMS develops software for its mutual funds’ services business and for mutual fund companies.
Computer Age Management Services: Network
CAMS offers an integrated and customized portfolio of services through its pan-India physical network comprising 278 service centers spread over 25 states and 5 union territories as of September 30, 2019.
CAMS: Competitive Strengths
- Largest Infrastructure and Services Provider in a Large and Growing Mutual Funds Market
- Integrated Business Model and Longstanding Client Relationships in our Mutual Funds Services Business
- Scalable Technology Enabled Ecosystem
- Strong Focus on Processes and Risk Management
- Experienced Management and Board and Marquee Shareholders
Company Promoters:
Great Terrain Investment Limited is the promoter of the company.
IPO Opening / Closing Date
IPO Details – Price, Minimum Bid and Other
Financial Performance
CONCLUSION
Considering company’s valuation, financial parameters, and the sector potential, FinBlab recommends SUBSCRIBE ratings on Computer Age Management Services Limited (CAMS) IPO
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