Big believer that MF will grow with FD rate going down. Only risk I see in CAMS is as AMC grow big the charge will go down – so volume of market might not give profit growth.
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True, But I think this can be blessing in disguise Since No other player would like to enter in low margin bussiness & creates a moat to propel bussiness further.
Another approach would be investment information which CAMS & KFin collects, can be utilised to generate revenues though I am not fully aware of this scenario. Kindly correct me if I am wrong.
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These new fintechs also need to engage with CAMS only …is that the right understanding ?
Yes… thats right… either with CAMS or KFintech… its essentially a Duopoly out there
Yes ,that’s right.
for Fintechs like Kuvera to onboard a new user have to import their consolidated MF portfolio from CAMS website,alike all other fintech sites.
By any chance,Is there any lending institution which in collaboration with CAMS or KFin, provides short term loans based on investments?
Not deleting this post since alike me there may be someone who dont know below things.
Update-
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The First link (Video is not available
It is available, although posted in 2018.
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While this is a great business and operates in duopoly environment, one of the reasons for non-performance of the stock price could be because of selling by promoters. Promoters (P/E firm) Great Terrain, has reduced the stake by 7% in Dec’21 Q, either ways it was holding only 30% as promoter. Other challenge could be strengthening of competitor KFINTECH. If big financial houses from India start supporting KFINTEC, then obviously it poses challenge for CAMS.
Any other thoughts on these 2 concerns?
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Well, I think the competition thing goes for Kfintech as well. What if they start losing to CAMS, execution matters going forward I think. Big players are with CAMS as of now and if they are working with a company, then there has to be a reason for it and has to be taken positively by the investors.
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Overall Q3 results looked quite good for the company, can anyone help me understand why the stock is still weak? Is there anything I am missing in the results?
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Net Sales at Rs 237.71 crore in December 2021 up 27.83% from Rs. 185.95 crore in December 2020.
Quarterly Net Profit at Rs. 77.31 crore in December 2021 up 37.03% from Rs. 56.42 crore in December 2020.
EBITDA stands at Rs. 117.44 crore in December 2021 up 32.99% from Rs. 88.31 crore in December 2020.
Good results and Rs10 dividend as well.
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It is a good set of results… I think this is the 3rd dividend declared in this year.
Q4 is expected to be good, since Jan SIP which has reached all time high may continue for the rest of the year.
Stock Market is cyclical. The all time high SIP may what be causing the price action. Cyclical businesses start correcting when the EPS is at the highest and PE ratio is lowest.
Investors may be thinking this the peak and it’s going to be downhill from here.
Disc:
Have a small tracking position
Over all inflow to Equity MF in Jan is down, could be 1 of the reasons for dip in share price
AMFI Monthly Data: Fewer NFOs in January drive equity inflows down to Rs 14,887.77 crore (msn.com)
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In my opinion CDSL is more cyclical than CAMS. Mutual fund industry is forever growing. People do SIP irrespective to market conditions where as direct stock investment deals with then market scenario. CAMS deserve the good valuation than CDSL.
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Old financial report of cams
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Received an email from HDFC life regarding contact related update. Noticed below information…
CAMSRep is in action…
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