CAMS Earnings Up; Motilal Oswal Reiterates BUY

### Analyst Confidence Bolstered by CAMS's Growth Trajectory

Motilal Oswal Securities has reaffirmed its BUY recommendation for Computer Age Management Services (CAMS), establishing a revised price target of INR 850 per share. This valuation is anchored to a Price-to-Earnings (P/E) multiple of 32 times projected FY28 earnings. The brokerage firm's sustained conviction stems from CAMS's capacity to maintain a dual growth trajectory, particularly highlighting the significant contributions from its diversified non-mutual fund segment.

### 3QFY26 Performance and Profitability Metrics

For the third quarter of fiscal year 2026, CAMS reported operating revenue of INR 3.9 billion, aligning with market expectations. This figure was primarily propelled by a 3% year-on-year expansion in its core mutual fund (MF) revenue and a substantial 24% surge in its non-MF business operations [cite:SOURCE A]. Over the first nine months of FY26, the company's revenue reached INR 11.2 billion, marking a 5% increase compared to the previous year [cite:SOURCE A]. Total operating expenses grew 7% year-on-year to INR 2.1 billion, with employee costs rising 4% to approximately INR 1.2 billion and other expenses climbing 12% to INR 868 million [cite:SOURCE A]. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) increased by 4% year-on-year to INR 1.8 billion, reflecting an EBITDA margin of 45.9%, a slight decrease from 46.7% in the prior year's comparable quarter [cite:SOURCE A]. For the nine-month period, EBITDA saw a 2% year-on-year growth, totaling INR 5 billion [cite:SOURCE A]. The company's TTM revenue stood at INR 14.77 billion with TTM net income of INR 4.64 billion and an EPS of INR 18.66. CAMS also announced a dividend of INR 3.5 per share, with a record date of January 30, 2026.

### Market Position and Competitive Landscape

CAMS commands a significant presence in the mutual fund registrar and transfer agency space, maintaining a steady market share of approximately 68% in the MF segment. The company serviced Assets Under Management (AUM) that crossed INR 52 lakh crores by September 2025. Its equity net sales market share improved to 69%, up from 65%. Key competitors in this domain include CDSL and KFin Technologies, while other players like PGIM, Value Research, and various financial technology firms also operate within the broader financial services ecosystem. The Indian mutual fund industry is experiencing robust growth, driven by increasing SIPs, expanding retail investor participation, and the proliferation of online trading platforms, which now account for over 33% of market share. The number of Demat accounts has grown at a substantial 32.3% CAGR from Fiscal 2019 to Fiscal 2025, indicating greater participation in capital markets.

### Valuation and Recent Stock Activity

As of January 23, 2026, CAMS traded around INR 679.40, with a market capitalization hovering between INR 16.8 billion and INR 17.3 billion. The company's P/E ratio stands at approximately 35.8x to 39.1x on a TTM basis, which is higher than the sector P/E of around 17.66. However, CAMS exhibits strong financial health with a Return on Equity (ROE) around 43-45% and is nearly debt-free. On December 5, 2025, CAMS shares experienced a significant price drop of 41% due to trading ex-split following a 1:5 stock split, a technical adjustment intended to boost liquidity and retail investor access, rather than reflecting fundamental changes.