Stock Outlook & Returns
The current market price (CMP) of CAMS stock stood at ₹2,272.15 apiece on NSE, down 0.26% from the previous close.
The stock in a week has fallen 3.44%, whereas, in 1 month 13.8%, respectively. Over the past 3 months, the stock has given 2.17% positive return. It has given 25.81% negative return over the past 1 year. It was listed on the stock exchange on 7 May 2021, and since its listing, it has given massive 62.13% positive return.
The stock recorded its 52 week high in November 2021 at ₹3,140.40 and the 52 week low recorded in May 2022 at ₹2,037.15, respectively.
Brighter outlook ahead
Industry AAUM up to 39.6 Lakh Cr (up 8.3%/3.5% YoY/QoQ) while equity AAUM saw the fastest growth, reached ₹ 18.4 Lakh Cr (up 20.1%/6.8% YoY/QoQ). Rising proportion of high yielding equity segment (45.1% by Q2FY23, which is expected to reach above 50% by FY25E). Recently launched CRA business has achieved 9.5% share and #2 position in new ENPS sales in Q2FY23.
Overall CAMS AAUM increased by 3.1% QoQ while there was 7.5% increase in equity AAUM QoQ with stable market share of 69%. Inflows through SIP increased by 4.7% QoQ. Transaction volumes increased by 2% QoQ to ₹ 11.3 Cr. CAMS share in new SIP sustained at 61% in Q2FY23. New SIP registration stood at ₹ 38 Lakh in Q2FY23 vs ₹ 37 Lakh in Q1FY23. Live SIP grew ₹ 14 Lakh in Q2FY23. SIP book was up 5% QoQ to ₹ 3,200 Cr. Unique investor services increased 3% QoQ to ₹ 2.4 Cr. AIF saw growth of 32% YoY with 19 new business addition in Q2FY23 while eInsurance Account & e-Policy doubled in volume in QoQ.
What should investors do?
The brokerage said, “We expect that a lot of downside has already priced in but uncertainty in the markets is still prevailing. We believe CAMS has a huge potential to grow so we maintain a BUY, 45x PE which is its all-time average on FY24E EPS of ₹ 75.6, for a target price of ₹ 3,400, a potential upside of 44%.”
The stock has been picked from the brokerage report of Bonanza Research. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before making any investment decision.