Market Leader stock engaged in providing investor, distribution, and asset management company services jumped upto 3 percent in the day’s trade following the collaboration with Google Cloud to revolutionize the financial services landscape in India.
Price Action
With a market capitalization of Rs. 18,447 Crores, the shares of Computer Age Management Services Limited were trading at Rs. 3,749.95 per equity share, up 2.49 percent from its previous day’s close price of Rs. 3,658.95.
What Happened
Computer Age Management Services Limited and Google Cloud have come together to build a next-generation Cloud-Native platform to Transform Asset Management Business Services and other businesses of CAMS and revolutionize the financial services landscape in India.
CAMS’s platform has been integral to the asset management industry of India for nearly 3 decades, supporting the industry’s growth for new product launches, market expansion, strengthened intermediation, regulatory compliance, and differentiated investor services
The next-generation platform, envisaged with Google Cloud, is a strategic step for the company to leverage the multiple benefits of cloud-based platforms for the rapidly growing asset management industry and to serve the new generation, of digital native investors.
Managing Director Message
Commenting on the initiative, Anuj Kumar, Managing Director at CAMS, said, “Our technology platform has been the financial infrastructure for the Indian Mutual Fund industry, serving investors and the complex ecosystem diligently, while scaling up to build a market share of about 68 percent in this arena.
While the current platform continues to stand the test of time, the company is gearing up for the industry’s growth momentum with a modernized platform that will adopt a distributed, service-oriented, cloud-native architecture with a modular design to ensure flexibility, scalability & improved time-to-market, and will ensure zero-downtime deployments.
We are excited to traverse this modernization agenda with Google Cloud who amply demonstrated their domain expertise and brought to the table a robust solution that is best-in-breed and compliant to the laws and regulatory standards.
Financials and Ratios
Its revenue breakdown as of Q4FY24 consists of 72.3 percent from Non-Mutual Funds,14.2 percent from MF non-asset-based, and 13.5 percent from Mutual Funds-assets-based.
Its revenue from operations grew by 21 percent from Rs. 236.75 Crores in Q4FY23 to Rs. 287.07 Crores in Q4FY24, accompanied by profits of Rs. 71.56 Crores to Rs. 96.96 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 39.8 percent and a return on capital employed (ROCE) of 48.4 percent. It has reported a debt-to-equity ratio of 0.11.
About the company
Computer Age Management Services Limited is engaged in providing investor services, distributor services, and asset management company services. It acts as a transfer agency for mutual funds, catering to Indian asset management firms. It is India’s largest registrar and transfer agent with an aggregate market share of 68 percent.
Computer Age Management Services Limited has a Pan-India physical network comprising 280 service centers spread over 25 states and 5 union territories. It provides services to 9 of the 15 largest Mutual Funds in India with ~20 years average relationship with the 10 largest MF clients
Written by: Bharath K.S
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