Three reasons why CAMS should be on your watchlist!

The biggest trigger for CAMS is its dominant market share in one of the fastest growing business segments in India, fuelled by increasing equity culture in India.

Sensex and Nifty are at all-time highs along with the participation in equity markets, which is also at all-time highs in India. We know the stocks that stand to benefit from the increased participation in equity have outperformed the markets. Stocks of broking firms such as Angel Broking, ICICI Securities, BSE, CDSL, and 5paisa Capital have all outperformed Sensex in 2021. Even AMC companies such as HDFC AMC and Nippon Life Asset have been gaining momentum.  

Here are the top three reasons why CAMS should be part of your watchlist:-   

1. Strong momentum: CAMS is up by more than 53 per cent in three months and technically, it is reflecting good momentum. The stock is trading at its life highs.  

2. Dominant market share: Computer Age Management Services (CAMS) has been serving as registrar and transfer agency to the asset management industry of India and a technology-enabled service solutions partner to private life insurance, alternative investment funds, banking and non-banking finance companies. CAMS is India’s largest, institutionally-owned service partner with 69.7 per cent market share (as of September 2019) as per CRISIL report of the Indian mutual fund industry and serves several Indian financial institutions as well as marquee MNC brands. Such dominant market shares in a fast-growing segment augur well for the company.   

3. Good fundamentals: CAMS reflects high RoE and extremely low debt with a high dividend payout.

The biggest trigger for CAMS is its dominant market share in one of the fastest growing business segments in India, fuelled by increasing equity culture in India. The stock is up by 0.54 per cent on an intraday basis while Sensex is up by nearly 250 points.