Cams Services (CAMS)
StalwartFairStock Score: 55/100 — STEADY
Score breakdown: P/E: 0/3 · ROCE: 2/2 · Growth: 1/2 · Dividend: 0/1
Key Financials
| Current Price | ₹762.25 |
| Market Cap | ₹18,926.48 Cr |
| P/E Ratio | 38.32 |
| ROCE | 54.75% |
| ROE | 42.88% |
| Dividend Yield | 1.68% |
| Profit Growth | 17% |
| Debt/Equity | 0.05 |
| Sales Growth | 11.5% |
| Free Cash Flow | ₹345 Cr |
| Promoter Holding | 0% |
| 52-Week Range | ₹611.4 — ₹844.8 |
| Sector | Capital Markets |
| Book Value | ₹53.27 |
Strengths
- Dominant franchise in mutual fund registry with 5-year revenue CAGR of 15.03%
- Exceptional profitability: ROE 42.88% and ROCE 54.75%
- Near-zero debt at 0.06 D/E and strong free cash flow of ₹345 Cr
- High financial safety as indicated by Piotroski F-Score 8/9 and Altman Z-Score 10.01
Concerns
- Very expensive valuation: P/E 37.81, P/B 18.44, and Graham Number of ₹130.42 against a price of ₹770.60
- Growth is decelerating: profit growth only 2.85%, and PEG ratio of 7.36
- Promoter holding at 0.00% means no insider skin in the game
- DCF intrinsic value of ₹163.14 implies a huge gap from the current price
AI Analysis
Let me start with the business. CAMS sits at the heart of India's mutual fund ecosystem, a toll booth of sorts. The 15% five-year revenue CAGR is admirable, and the latest quarter shows ₹367 Cr sales with ₹122 Cr net profit. But I've learned that past growth and future growth are different animals. The latest profit growth is just 2.85%, and sales growth 8.34%. This is a quality business—ROE of 42.88% and ROCE of 54.75% tell me they don't need much capital to operate. Debt/equity of 0.06 and ₹345 Cr free cash flow confirm financial strength. The Piotroski score of 8/9 and Altman Z of 10.01 reinforce the balance-sheet integrity. Yet price matters. At ₹770.60, the P/E is 37.81, and the P/B is 18.44 against book value of ₹41.79. Graham would roll his eyes: the Graham Number is only ₹130.42, implying a margin of safety of -419%. Even a conservative DCF puts intrinsic value at ₹163.14—less than a quarter of the price. I cannot reconcile the market cap of ₹16,797 Cr with the earnings power unless growth reaccelerates sharply. The PEG of 7.36 suggests the market is paying up for growth that isn't showing up in the latest numbers. A 1.83% dividend yield offers little while you wait. Also, promoter holding at 0.00% bothers me—where are the founders? This is a great franchise, but a great business at a bad price is a poor investment. I'd watch the next few quarters for a better entry.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer