CAMS share price rises over 5% as top brokerages see up to 16% upside
CAMS (Computer Age Management Services) share price has strongly underperformed the equity benchmark Sensex in the last one year but the situation may change now as top brokerage firms believe the stock may see a decent rise from the current levels because of the company's "growing capabilities". In the last one year, the stock has lost nearly a per cent while the Sensex has gained over 11 per cent. The stock witnessed strong traction on Monday.
CAMS share price rose over 5 per cent in morning trade on BSE on Monday after brokerage firms expressed their positive views on the stock after the company's Analyst Day on September 8. The stock opened at ₹2,490.05 against its previous close of ₹2,463.25 and rose 5.3 per cent to the intraday high of ₹2,594.20 on BSE in Monday's trade so far. The stock hit its 52-week high of ₹2,689 on October 13, 2022.
The stock is currently down about 8 per cent from its one-year peak level. Brokerage firm Kotak Institutional Equities upgraded the stock to an 'add' from a 'reduce' and raised the fair value (target price) to ₹2,600 from ₹2,200 earlier, implying a nearly 6 per cent upside potential, while underscoring CAMS has diverse and growing capabilities. "We revise earnings upward, largely driven by mark-to-market of AUM (assets under management) growth.
We revise fair value to ₹2,600 (from ₹2,200), with an add rating (from reduce), valuing the business at nearly 30 times September 2025E EPS (earnings per share), with nearly 18 per cent earnings growth over FY2024-26E," said Kotak. Kotak highlighted that CAMS, on its analyst day, reiterated its position as a leader in the MF (mutual fund) ecosystem (compliance track record, market share gains and client wins). Additionally, several diverse
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