Hi @sitansu.gandhi, Thanks for asking. I don’t have any particular view on KFintech. Their business models are slightly different in the non-MF space due to KFintech’s international exposure and issuer solutions business. My shareholding in CAMS dates back to before KFintech got listed, and I have not felt the need to move out or add a second stock in the same space.
That said, CAMS’ more concentrated MF RTA exposure probably offers higher scope for profitability improvement in the coming years though topline growth may be higher at KFintech. Look at the following slide from CAMS presentation.
My impression is that hundreds of people are involved today in these tasks (and similar such). All these tasks will get automated gradually using AI, leading to substantial cost savings and corresponding margin improvement. At least a 5 to 10 % margin improvement can come solely from deploying AI across its operations, once the ongoing cloud project is completed next year. This was partly discussed in the recent concall as well though Mr. Anuj Kumar did not quantify the benefit.
The risks to CAMS come from depressed domestic markets however, due to lack of international exposure like KFintech.
(Disc.: Invested)