I think CAMS certainly deserves place in portfolio but not at the expense of AMCs. This is similar to Auto OEM and Supplier to auto companies. Theoretically, it is safe to invest in supplier as it supplies to lot of OEMs then investing in one or two OEMs. But normally, suppliers are squeezed for margin every time. That’s the reason you may not see lot of suppliers with large market caps but lot of OEMs in Blue-chip bucket.
If individual AMC is facing issue, it will also give less business to CAMS, so that affects CAMS.
I think reason to invest in CAMS should be their other digital business that has good future and off course it will have steady business from AMCs.
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