Buy Computer Age Mngt Ser, target price Rs 3425: IIFL Securities

IIFL Securities issued a buy recommendation for Computer Age Management Services (CAMS) on May 15th. At the current market price of Rs. 3313.95, IIFL believes the stock has potential for growth. They set a target price of Rs. 3425, indicating a potential upside of approximately 3.3%. This recommendation is primarily based on CAMS' strong position in the registrar and transfer agency (RTA) market, its expanding presence in the financial advisory and distribution segments, and its healthy financial performance.

About Computer Age Mngt Ser:

Computer Age Management Services (CAMS) is a leading registrar and transfer agent (RTA) in India, providing a range of services for mutual funds, insurance companies, and corporate issuers. Incorporated in 1988, CAMS is a joint venture between NSE Investments, HDFC, and the State Bank of India Group. The company's services include transaction processing, fund accounting, dividend processing, investor servicing, and corporate advisory. CAMS operates a pan-India network, serving over 100 million investor accounts across more than 60,000 service locations. The company is known for its technology-driven solutions and commitment to customer service. CAMS is listed on the National Stock Exchange of India (NSE) and has a market capitalization of over ₹10,000 crores.

52 Week Price Trend:

Computer Age Management Services (CAMS), a leading registrar and transfer agent, witnessed a significant surge in its share price during the COVID-19 pandemic, reflecting the increased demand for online services. However, the stock has experienced a correction in recent months, falling from its 52-week high of Rs 3190.35 to its current level of Rs 3313.95. This correction may have been driven by profit-booking and concerns over the company's valuation. Nonetheless, CAMS remains a well-positioned company in the growing fintech industry, with a strong moat and a dominant market share.

Stratzy's MOST Analysis:

CAMS has been rated AA- by Stratzy's MOST framework, indicating a low fundamental risk. This rating is based on an assessment of the company's management, outlook, safety, and trend. Specifically, CAMS has demonstrated strong management, a positive outlook, a high level of safety, and a favorable trend. This suggests that CAMS is a financially sound company with a solid foundation for future growth.

Company's Fundamentals:

Computer Age Mngt Ser (NSE: CAMS) is a company listed on the National Stock Exchange (NSE) of India. As of today, its stock has a price-to-earnings (PE) ratio of 49, indicating that investors are willing to pay 49 times the company's annual earnings per share for its stock. The price-to-book (PB) ratio is 19.11, which means that the market value of the company is 19.11 times its book value, or the value of its assets minus its liabilities. The dividend yield of 1.21% indicates that investors can expect to receive an annual dividend of Rs. 1.21 for every Rs. 100 invested in the stock.

Fundamental and Technical information provided in this blog were last updated on 15 May, 2024

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