Shares of Chennai-based Computer Age Management Services Ltd (CAMS) soared by nearly 5 percent after the company’s top management sounded bullish over the medium-term revenue growth and operating margins in an analyst meeting.
The company, which is India's largest mutual fund transfer agency which provides services to AIFs, insurance companies, banks & NBFCs, in an analyst meet, on September 8, exuded confidence over growth and margin outlook and expects its market leadership will continue across segments.
CAMS guided for a 14 percent revenue growth and a 45 percent EBITDA (earnings before interest tax depreciation and amortisation) margin in the medium term.
The company is hopeful that operational efficiencies and enhanced productivity gains should drive EBITDA margin expansion to 45 percent.
The company expects MF assets under management (AUM) to grow at 15 percent over the next few years.
The CAMS management reiterated guidance to increase the share of non-MF-based revenue to 20 percent over the medium term.
It also mentioned opportunities in the AIF segment with rising compliance needs.
CAMS had reported a significant improvement in revenue both sequentially and year-on-year (YoY) for the April-June quarter of FY24.
The company’s MD and CEO told CNBC-TV18 last month that the company was looking to capture a substantial share of the non-mutual fund market, aiming for 14.5 percent stake by the end of 2023-24 from the present 12.5 percent.
CAMS shares soared by more than 4.5 percent to hit a high of Rs 2,594.20 apiece in morning deals on Monday, trading around 3 percent lower than the 52-week high of Rs 2,689 hit on October 10, 2022. The stock has rebounded around 30 percent from the 52-week low hit on March 29, 2023.
CAMS shares were trading 3.53 percent up at Rs 2550.10 apiece on BSE at 9.45 AM.
(Edited by : Asmita Pant)
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