Brokerage firm Emkay Global has kept its 'Buy' rating on Computer Age Management Services (CAMS) with a price target of ₹850. The update follows the company’s recent second-quarter performance, which showed steady profit growth and margin expansion. Investors are tracking how the company balances its core mutual fund operations with rapid growth in non-mutual fund segments.
Brokerage firm Emkay Global has reaffirmed its 'Buy' rating on Computer Age Management Services (CAMS), setting a price target of ₹850. This update follows the company’s recent release of its financial results for the second quarter of the 2027 fiscal year, where it reported growth across both its core and non-core businesses.
The company’s latest performance highlights a 10% year-on-year rise in operating revenue, which reached ₹414.5 crore for the quarter. Net profit also followed a positive trend, growing 14.4% compared to the same period last year to hit ₹131.5 crore. A notable aspect of this performance was the company’s operational efficiency, with EBITDA margins expanding by 140 basis points to reach 46.0%.
A significant factor behind this performance is the diversification into non-mutual fund businesses. The company reported a 21.7% year-on-year growth in these segments. Within this, the payment division, known as CAMSPay, stood out with a 52% increase in revenue. This diversification is seen by analysts as an important way to reduce reliance on the core mutual fund registrar business, which is inherently sensitive to market-driven fluctuations in asset levels.
For investors, the outlook shared by analysts focuses on pricing stability. There is an expectation that the mutual fund business will not face major pricing pressure in the near term, which supports the current positive stance despite the stock trading in the ₹660–₹670 range recently. This pricing stability helps the company maintain its profit margins even as it spends to grow new business lines.
However, the company operates in a sector sensitive to broader market volatility. While the mutual fund assets under management reached a record ₹58.4 lakh crore, any significant shift in market sentiment can impact transaction volumes and revenue. Additionally, while the non-mutual fund segment is growing, it remains a competitive field where CAMS must continue to provide value to maintain its market share.
Management has also declared an interim dividend of ₹3.25 per share. Investors should note that the record date for this dividend is November 13, 2026. Moving forward, the key factor for investors to track will be the company’s ability to sustain its margin expansion as it scales its non-mutual fund business, alongside monitoring how competitive pricing impacts its overall revenue yields in the coming quarters.