CAMS Gains As Motilal Oswal Initiates Coverage With A 'Buy'
Motilal Oswal sets for Computer Age Management Services a target share price of Rs 3,000 apiece, an implied return of 18.61%.
Shares of Computer Age Management Services Ltd. posted their best day in more than three months after Motilal Oswal initiated coverage on the stock with a 'buy' rating.
The brokerage set a target price for CAMS at Rs 3,000 apiece, an implied return of 18.61%, according to its report.
Motilal Oswal said CAMS was prepared to succeed in conjunct opportunities and termed the company as a direct play on the growing financialisation of savings in India.
The brokerage identified addition of new customers, rising market share of incumbent customers as key reasons for rising prominence of the company. With rising mutual fund penetration in India, CAMS could log 15% CAGR in AUM in the coming decade, it said.
CAMS also has the potential to revolutionise lending and financial planning, the way UPI did for payments, according to Motilal Oswal. It valued the company at a premium to AMCs (14-25x one-year forward P/E) due to duopoly of registrar and transfer agents industry.
The stock had risen over 6% during the trading session before closing with gains of 4.7%.
The stock gained for the fourth straight day.
The stock's trading volume was thrice the 30-day average, when markets closed on Monday. The Relative Strength Index was at 73, suggesting the stock may be 'overbought'.
Of the nine analysts tracking the company, seven maintain a 'buy' and one each suggests a 'hold' and a 'sell', according to Bloomberg data.
The 12-month consensus price target implies an upside of 4.5%.
Yes Research also has a target price of Rs 3,000 on the stock.
