CAMS - Macros In Favour Of The Non-MF Business: Motilal Oswal

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.From a long-term perspective, the structural tailwinds in the mutual fund industry will continue to drive assets under management growth, translating into a strong absolute growth in MF revenue for Computer Age Management Services Ltd. (15% during FY24-26). CAMS has been investing in the non-MF businesses over the past couple of years, which will lead to an improvement in the share of revenue to 20% over the next five years. Operating leverage will drive margin expansion in these businesses, percolating to an overall profit after tax compound annual growth rate of 23% during FY24-26. Empirically, CAMS has traded at a premium to the listed asset management companies in terms of oneyear forward price/earnings. After the outperformance of AMCs, however, the valuation premium between CAMS and AMC stocks has narrowed. The premium for CAMS is well warranted, given:the duopoly nature of the industry and high entry barriers,relatively low risk of a market share loss, and higher customer ownership versus AMCs. We reiterate our Buy rating on the stock with a target price of Rs 3,450, at a P/E multiple of 32 times on FY26E earnings..Click on the attachment to read the full report:.AU Small Finance Bank - Building Strong Foundation For Sustainable Growth: Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

CAMS - Macros In Favour Of The Non-MF Business: Motilal Oswal

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