Geojit’s IPO report on Computer Age Management Services
Computer Age Management Services Ltd (CAMS), incorporated in 1988, is a technology-driven financial infrastructure and services provider to mutual funds and other financial institutions, headquartered in Chennai. CAMS is India’s largest registrar and transfer agent of mutual funds with an aggregate market share of about 70%, based on mutual fund average assets under management (AAUM) managed by its clients. Great Terrain is the Promoter of the Company. Four of the five largest mutual funds, as well as nine of the fifteen largest mutual funds based on AAUM, are their clients. CAMS provide services through a pan-India physical network comprising 271 service centers spread over 25 states and five union territories. Marquee shareholders include Great Terrain (an affiliate of Warburg Pincus), HDFC, HDFC Bank and NSEIL.
Valuation and Outlook
At the upper price band of Rs.1,230, CAMS is available at a P/E of 34.6x and when we annualize Q1FY21 numbers we arrive at a P/E of 36.7x for FY21E on a post issue basis. Given that there is no listed peer to compare, and based on stable financial, we assign a subscribe rating on this IPO.
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