1. At a Glance
CAMS is the registrar and transfer agent (RTA) that powers India’s mutual fund backbone — 68% market share, 26 of 50 AMCs as clients, and all three new MF mandates (including Jio BlackRock) in its pocket. It’s not glamorous; you’ll never see a CAMS ad during IPL, but every SIP you set up, every redemption you curse, quietly flows through their servers. With ROE at 43%, OPM at 45%, and a near-debt-free balance sheet, this is the desi definition of a regulated toll-booth business. The stock, however, trades at a princely P/E of 41 — because boring monopolies in India aren’t cheap, they’re cults.
2. Introduction
If HDFC AMC is the movie star, CAMS is the spot boy. It doesn’t get screen time, but without it, the movie doesn’t release. Incorporated in 1988 and IPO’d in 2020, CAMS has built itself into a systemic choke point for India’s ₹43.7 lakh crore MF industry.
Investors don’t wake up thinking, “Wow, my SIP worked smoothly today, CAMS must be amazing.” No, but behind the curtain, CAMS is silently handling 9 crore investor folios, 65 crore annual transactions, and 5.9 lakh crore in SIP books. Its moat? Deep integration, regulator trust, and operational scale.
And here’s the fun: CAMS has also been quietly diversifying. It’s not just an MF RTA anymore. Insurance repositories, AIF/PMS platforms, account aggregation, payment gateways (CAMS Pay), and even eNPS services. The strategy is simple: if India’s savings move from FDs to financial markets, CAMS wants a toll on every highway.
The business is sticky, cash-rich, and asset-light. Which is why FII ownership is 52%, DIIs 17%, and promoters a big fat zero (they exited in 2023). In other words, Wall Street and Dalal Street own your SIP backend now.
3. Business Model (WTF Do They Even Do?)
Let’s decode CAMS:
- Mutual Funds (87% of revenue):Core breadwinner. Processes account openings, transactions, redemptions. Runs platforms like myCAMS, MF Central (JV with KFin), and CAMServ chatbot. 68% MF RTA market share → effectively an oligopoly with KFin.
- Non-MF (13% revenue, growing):
- AIF & PMS:Market leader, 170+ fund houses, ₹2.2 lakh Cr AUA.
- CAMS Rep (Insurance Repository):Over 1 Cr e-policies. Growing thanks to regulator forcing digital.
- CAMS Pay:RBI-approved payment aggregator. Processes 1.4 Mn mandates daily, empaneled with LIC.
- CAMS FIS (Account Aggregator):Approved AA, 58 Mn accounts linked. Plays into data-driven lending.
- CAMS KRA:Second largest KYC Registration Agency. 20% market share.
- CAMS
- NPS:CRA services for eNPS, 10%+ share.
- Acquisitions:Think360.ai and Fintuple for AI/data solutions.
So, the model is: “be the backend for India’s financialisation.” They’re not trying to sell you funds or insurance. They just want to be the pipes. And once pipes are laid, nobody digs them up.
4. Financials Overview (Q1 FY26 vs YoY & QoQ)
| Metric | Q1 FY26 | Q1 FY25 | Q4 FY25 | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | ₹354 Cr | ₹331 Cr | ₹356 Cr | +6.9% | -0.6% |
| EBITDA | ₹154 Cr | ₹150 Cr | ₹159 Cr | +2.7% | -3.1% |
| PAT | ₹108 Cr | ₹107 Cr | ₹113 Cr | +1.0% | -4.4% |
| EPS (₹) | 22.0 | 22.0 | 23.1 | Flat | -5% |
Annualised EPS run-rate = ~₹88. At CMP ₹3,869 → P/E ~44x. Screener shows 41x (close enough, my math uses quarterly run-rate).
Commentary: Stable growth, fat margins, zero drama. CAMS financials are like your uncle’s Maruti Alto — not flashy, but runs forever.
5. Valuation (Fair Value RANGE Only)
- P/E Method:FY25 EPS ₹95.4; apply 30–40× →₹2,860 – ₹3,820.
- EV/EBITDA:FY25 EBITDA ~₹656 Cr; EV/EBITDA multiple 22–28× →₹14,400 – ₹18,400 Cr EV→ per share₹2,900 – ₹3,700.
- DCF (rough):Assume 15% growth, 11% WACC, 4% terminal →₹3,200 – ₹4,000.
Overall FV Range:₹2,900 – ₹4,000This FV range is for educational purposes only and is not investment advice.
6. What’s Cooking – News, Triggers, Drama
- Jio BlackRock MF Mandate:The big daddy of financialisation entered the MF space, and CAMS grabbed their RTA mandate. Massive credibility win.
- MF Central JV with KFin:Instead of killing each
