CMS Info Systems has given 32.4% returns in the last year: Should you buy?
cash management company reported a decent performance in the September 2024 quarter, with 15% year-on-year revenue growth. The performance was supported by significant growth in the managed services segment (36% year-on-year) and moderate growth (8% year-on-year) in the cash management services segment. However, margins (both EBITDA and PAT) contracted quarter-on-quarter and year-on-year amid lower realisations in the cash management segment, execution delays, and lower transactions in Brown Label ATMs (BLA). Analysts believe that such margin compression is temporary and expect performance acceleration in the second half of the current financial year.
The company provides cash logistics services, including ATM and retail cash management and cash in transit. It is expanding into managed services like banking automation, ATM software, and remote monitoring. As a key partner for banks, NBFCs, retailers, and e-commerce firms, CMS Info leverages its network, technology, and solution-focused approach to tackle complex challenges.
Expansion of branch infrastructure (including ATMs) by banks to improve growth and outsourcing of cash management by the retail sector are the key growth drivers for the company. Its business model supports long-term growth as different segments are poised for decent growth. Extensive pan India network, high route density and scale, robust technology and risk management (mitigate manual risks through automation and customised in-house solutions) is helping strengthen the competitive position in
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