Sunil Singhania recently purchased a 1.1 per cent stake in Indias largest ATM cash managing stock
This small-cap stock serves leading banks like SBI, HDFC, ICICI, and Axis
Sunil Singhania co-founded Abakkus Asset Manager, an asset management firm, which has more than Rs 8000 crore assets under management. He was previously a global equity head at Reliance Capital Group Ltd. The AUM of the Reliance Growth Fund (now known as Nippon India Growth Fund) increased 100 times in less than 22 years under his leadership.
As per the June quarterly ending, Sunil Singhania has 28 stocks in his portfolio which are currently worth Rs 2167 crore. Recently, he added 4 fresh positions in CMS Info Systems Ltd, J Kumar Infraprojects Ltd, Stylam Industries Ltd, and Ethos Ltd.
He currently owns 1,611,678 shares of CMS Info Systems Ltd. This holding is valued at Rs 44.6 crore as of August 18.
CMS Info Systems Ltd is engaged in the business of ATM cash management, retail cash management, cash in transit, banking automation, brown label ATM, remote monitoring, multi-vendor software, and card personalisation.
It is the largest cash management company in India. It serves major banks such as SBI, HDFC, ICICI, and Axis. The company owns over 4,000 vans and attends over 1,50,000 business points across India.
The company financials look strong. The 5-year sales and profit growth stood at 12 per cent and 23 per cent CAGR, respectively. As per the March period ending, the company has an ROE and ROCE of 19.7 per cent and 25.4 per cent, respectively.
The promoters own 63.16 per cent of the shares, followed by FIIs with 10.4 per cent, DIIs with 11.65 per cent, and non-institutional investors with 14.78 per cent.
The business just recently went public in December 2021. As of August 18, the company has a market capitalisation of Rs 4245 crore and the stock is trading at a PE multiple of 17.5x.