Nuvama Institutional Equities has maintained its 'Buy' rating on Computer Age Management Services Ltd (CAMS) shares, while raising its 12-month target price.

The domestic brokerage said CAMS' Q4 FY26 revenue of Rs 395 crore (+11.0 per cent YoY/1.3 per cent QoQ) and NOPLAT (Net Operating Profit Less Adjusted Taxes) of Rs 150 crore (+14.2 per cent YoY/1.1 per cent QoQ) were shaped by "four moving parts".

First, Nuvama highlighted weak equity markets constraining AUM-linked growth to 0.4 per cent QoQ; second, stable yields (less than 1 per cent compression). Third, strong growth in the non-MF segment (+6.9 per cent QoQ). Fourth, tight cost control driving operating leverage (opex grew only 7.8 per cent YoY/0.4 per cent QoQ), resulting in EBITDA margin expansion for the third consecutive quarter.

Nuvama added, "APAT (Adjusted Profit After Tax) grew 11.6 per cent YoY/1 per cent QoQ to Rs 126 crore, aided by stable other income."

"Management expects annual yield dilution of 3–3.5 per cent. More importantly, core operating metrics improved with equity market share at 67.1 per cent, total AUM market share at 67.6 per cent, net sales market share at 76.3 per cent and new SIP registrations at 1.26 crore. This suggests that the underlying franchise continues to strengthen. The key monitorable remains potential AMC-led renegotiation of RTA yields, particularly if AMCs look to pass through TER-related pressure to vendors though no negotiations have started yet," the brokerage also said.

"We are tweaking FY27E/28E APAT by (4 per cent)/(4.9 per cent), yielding a TP (target price) of Rs 910 (earlier Rs 850) valuing the stock at FY28E EV/NOPLAT of 35x; maintain 'BUY'. At CMP, the stock trades at FY28E PE of 29.7x," Nuvama further stated.

Meanwhile, shares of CAMS were last seen trading 0.71 per cent higher at Rs 803 in Wednesday's trade, climbing 20.21 per cent in a month.

The company's board recommended a final dividend of Rs 4 per equity share, subject to the approval of shareholders at the Annual General Meeting (AGM) to be held on July 7, 2026. The record date for the final dividend will be July 10, 2026, CAMS added.