
pushkar balu palde
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pushkar balu palde
@PushkarPalde
Pushkar Balu palde




CAMS - Why Geojit Is Bullish & Sees 20% Upside? Let's break it down .. Geojit initiates coverage on CAMS Ltd. with an Accumulate rating and a ₹4,425 target - a 20% upside 1 | Dominant RTA Backbone 🔹Largest RTA in India with 68% MF AUM share 🔹Serves 10 of top 15 AMCs, SBI, HDFC, ICICI Pru 🔹₹46.3Tn AUM serviced (Q3FY25) 🔹Adds 0.8 Mn investors monthly, 1.5x faster than peers. 2 | Massive Industry Tailwinds 🔹MF AUM/GDP: India = 18% vs Global avg = 65% 🔹AUM CAGR (FY20–24): 22% 🔹Retail AUM up 29% in 9MFY25 🔹Over 10 Cr SIP accounts as of Feb 2025 3 | Solid Financials Ahead 🔹FY25 - 27E Revenue CAGR: 14% 🔹EBITDA CAGR: 13%, PAT CAGR: 14% 🔹FY27E EPS: ₹123.8 | ROE: 47.6% 🔹High margin, high return business 4 | Attractive Valuation 🔹Target: ₹4,425 🔹Upside: +20% 🔹Current P/E: 29.8x vs 5Y Avg: 40x 🔹Re-rating likely as equity sentiment recovers 5 | SIP: The Sticky Flywheel 🔹SIP AUM CAGR (FY21–24): 31% 🔹Monthly inflows: ₹26,459 Cr (Dec ’24) 🔹CAMS SIP registration share: 64% 6 | Tech-Led & Scalable 🔹₹100 Cr Google Cloud partnership 🔹AI-led automation in operations 🔹First international RTA client, CeyBank (Singapore) 🔹 Largest MF servicing tech infra in India 7 | Diversified Growth Engines 🔹Non-MF revenue: ~12% 🔹CAMS AIF, CAMS Pay, CAMS KRA, CAMSRep 🔹Each vertical growing at 20%+ CAGR 🔹Future-proofing business 8 | Institutional Confidence 🔹FII Holding: 57.6% 🔹Mutual Funds: 17.4% 🔹Public: 19.7% 9 | Peer Advantage vs KFin Tech CAMS vs KFin Tech : 🔹Market Share (MF AUM): CAMS – 68% | KFin – ~30% 🔹Client Base: CAMS – Top-tier AMCs (SBI, HDFC, ICICI) KFin – Mid-sized AMCs 10 | India’s Macro Boost 🔹Per Capita GDP: $2,698 (2024) → $4,195 (2029) 🔹65% population to be working age by 2036 🔹Household savings shifting from deposits to MFs 11 | Key Risks to Monitor 🔹Market volatility = lower AUM = lower revenue 🔹88% revenue still from MF RTA (concentration) 🔹Regulatory pressure on TER may impact fees 🔹Cybersecurity threats, digital backbone CAMS doesn’t just support mutual funds - it powers them. - With unmatched market share, sticky SIP inflows, consistent profitability and strong industry tailwinds, Geojit believes CAMS can deliver 20% wealth creation. High moat. High margin. Long runway. 🚫 No Buy/Sell Recommendation #StocksInFocus #StocksToWatch #CAMS
































