According to NSE India, The depositories, clearing houses, and intermediaries industry in India plays a crucial role in the financial market, facilitating over ₹200 trillion in transactions annually. With two primary depositories—NSDL and CDSL—over 99% of securities settlements occur electronically, enhancing efficiency and security for investors.
With a market capitalization of Rs 23,710.28 crore, the shares of Computer Age Management Services Ltd were trading at Rs 4,811.05 per share, increasing around 1.02 percent as compared to the previous closing price of Rs 4,860.80 apiece.
Matter explanation:-
As of September 2024, Goldman Sachs Group, a Foreign institution investor bought 5,03,525 fresh equity shares which is equivalent to 1.02 percent of the company.
Financial performance:-
Examine the company’s financial condition, revenue zoomed by 27 percent from Rs 261 crore in Q1FY24 to Rs 331 crore in Q1FY25, and during the same time frame, net profit increased drastically by 40 percent from Rs 76 crore to Rs 107 crore.
The company’s EBITDA grew by 36.6%, with margins rising 320 basis points to 45.4%. PAT increased nearly 42%, expanding margins by 330 basis points. Additionally, the company surpassed Rs 40 trillion in assets under management (AUM), marking a 35% YoY growth, with equity AUM growing over 55%.
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Strategic Initiatives:-
The company’s strategic partnership with Google Cloud aims to revamp its RTA platform, focusing on enhanced efficiency and risk management. The project will roll out in phases over 4-5 years, allowing for thorough testing and gradual implementation to optimize operations and mitigate risks.
In the account aggregator space, the company’s market share has surged from 2-3% to 13-15% in the past two years. While current revenue is modest, the growth outlook is strong, with expectations to reach INR 11-15 crores by FY’26, indicating positive long-term potential.
Management outlook:-
Management is optimistic about achieving 20% non-mutual fund revenue by FY’27, driven by ongoing investments in technology and talent. These efforts are expected to support long-term growth and enhance performance across segments.
Additionally, management is open to inorganic growth opportunities, particularly in insurance and payments, to accelerate non-mutual fund revenue growth and diversify its business portfolio.
Monopoly position:-
CAMS commands approximately 70% of the market share in the mutual fund registrar and transfer agent sector in India, making it the largest player in this space.
Company profile:-
Computer Age Management Services Limited is an India-based technology company focused on the capital markets, and banking, financial services, and insurance (BFSI). The Company provides financial infrastructure and services to mutual funds (MFs), alternative investment funds (AIFs), insurance companies, and other financial institutions.
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Written by:- Abhishek Singh
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