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

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