CAMS stock rises 6% on healthy Q4FY24 results; up 20% thus far in 2024

CAMS stock price: In the past six months, the stock has gained over 30 per cent

Shares of Computer Age Management Services (CAMS) advanced 5.7 per cent to Rs 3,274 apiece on the BSE on Friday after the company posted healthy financial results for the March quarter (Q4) of financial year 2023-24 (FY24). At+ 12:55 PM, the stock of  India's largest registrar and transfer agent of mutual funds was trading 3.6 per cent higher at Rs 3,209 per share as against an unchanged S&P BSE Sensex index. 

During the quarter under study, CAMS reported a 38.7 per cent rise in consolidated profit after tax to Rs 103.50 crore as against a net profit of Rs 74.36 crore in the year-ago period.

The growth was driven by healthy revenues across verticals. The mutual fund (MF) revenue grew by 21.1 per cent Y-o-Y with MF asset under management (AUM) standing at Rs 37.2 trillion at the end of Q4FY24. It registered a 10 per cent growth Q-o-Q and 33 per cent Y-o-Y. 

The revenue of non-MF segment, meanwhile, increased 52.1 per cent Y-o-Y. The sustained focus on expanding non-MF businesses led to a 250 basis points Y-o-Y increase in the share of non-MF revenue, reaching 13.5 per cent of overall revenue.

That apart, CAMS alternatives grew by 20 per cent Y-o-Y, 32 new mandates were added including 4 in GIFT City; CAMSPay received the final authorisation to operate as a payments aggregator from the Reserve Bank of India (RBI); IRDAI has mandated electronic issuance of insurance policies starting April 1, 2024; CAMS KRA continues to broaden its offerings in Capital markets, adding fintech brokerages and wealth advisors as its clients.

Its total revenue came in at Rs 310.46 crore for the quarter, up 24.6 per cent Y-o-Y. For the entire FY24, CAMS reported revenue of Rs 1,136.52 crore, up 16.9 per cent Y-o-Y; profit before tax came to Rs 469.51 crore, up 23.3 per cent Y-o-Y; and net profit at Rs 353.64 crore, up 24 per cent Y-o-Y. Profit margins for FY24 came at 30 per cent.

CAMS is a financial infrastructure and service partner to the asset management industry and provides platform-based services to BFSI segment. The company is India's largest registrar and transfer agent of mutual funds with an aggregate market share of 68.1 per cent, based on mutual fund average assets under management. 

So far in the current calendar year, CAMS stock price has surged around 20 per cent as against 2 per cent gain in the benchmark S&P BSE Sensex. Meanwhile, in the past six months, the stock has gained over 30 per cent.

Meanwhile, the mutual fund gross inflows through the systematic investment plan (SIP) route topped the Rs 20,000-crore mark for the first time in a calendar month in April as investors opened a record 6.4 million SIP accounts despite a spike in market volatility. The number of accounts opened last month was almost 50 per cent higher than the registrations seen in March.