CAMS Q3 Results Review - Inline Performance, Margin Improves Sequentially: Motilal Oswal

Motilal Oswal Report

Computer Age Management Services Ltd.'s reported a net profit of Rs 885 million in Q3 FY24, up 20% YoY, and in line with our estimate. The growth in profitability was supported by a YoY increase in the share of non-MF business and an improving mix of equity assets under management in the total mutual funds AUM.

The share of non-MF business grew to 12.8% YoY in Q3 FY24 and is expected to continue to increase in the coming quarters. Operating revenue reached Rs 2.89 billion, up 18.9% YoY and 5.3% QoQ, in line with our estimate.

The management is confident that CAMS WealthServ, CAMSPay, CAMSRep, and Think360 would contribute sizable revenues in the coming quarters. It expects 20%+ growth in revenues for non-MF business.

Currently, we have a 'Buy' rating on the stock with a target price of Rs 3,450 at a earning price multiple of 32 times on FY26E .

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