Computer Age Management Services Ltd (CAMS) is India’s largest registrar and
transfer agent (RTA) of mutual funds with an aggregate market share of
approximately 70% based on mutual fund average assets under management
(AAUM) managed by its clients and fastest growing RTA for last 5 years. CAMS is
responsible for entire back end work of its mutual fund clients i.e. from account
creation to processing to redemption and also provides statutory statements,
transaction origination, operations, investor & distributor services, risk
management services and compliance services. For all the above service, CAMS
charges fees of 0.036% (FY20) on AUM managed by its clients. All 41 mutual
funds outsource back end/operational work to RTA.
Outlook & Valuation: At the upper end of the IPO price band, it is offered at
34.6x its FY20 EPS and 11x its FY20 book value, demanding `6,000cr market
cap, which we believe is reasonable. Given CAMS’ leadership position, huge
growth potential of MF industry, strong return ratios, asset-light business and
higher dividend payout ratio, we are positive on this IPO and rate it as
SUBSCRIBE.
Please Wait...
Please Wait...
Please Wait...
Please Wait...
Please Wait...
Please Wait...
Please Wait...
Please Wait...
Please Wait...
Please Wait...
Please Wait...
Please Wait...