YES Securities

Target: ₹925

CMP: ₹

We highlight CAMS as an excellent way to play the capital markets theme since non-MF businesses have reached harvest phase and will drive strong EBITDA growth the MF business will revert to normalised performance this year; and the margin outlook is positive.

F

The share of non-MF businesses in overall revenue has risen from 13.1 per cent in FY24 to 14.4 per cent in FY26 The share of Alternates business has also inched up to 2.9 per cent. The outlook for the combined non-MF business is very healthy

I

MF revenue growth declined to 5 per cent in FY26. The normalised ratio of MF revenue growth to AUM growth declined to 26 per cent. This should not repeat in FY27. This was on account of weakness in equity markets.

Employee cost control will also be beneficial for overall EBITDA margin for CAMS.

Employee cost growth declined to 6 per cent in FY26 due to employee count control. The company intends to improve its performance of employee count control in FY27, which will be aided by the re-architecture being carried out.

The market share for CAMS in total MF industry AUM has remained broadly stable at 67.6 per cent in FY265.

The market share in MF industry equity AUM has also remained broadly stable at 66.4 per cent. The market share for CAMS in live SIPs has increased to 64.2 per cent in FY26.

We assign a BUY rating on CAMS with a price target of ₹925. We value CAMS at 35x FY28E P/E for an FY26-29E EPS CAGR of 17 per cent to arrive at our price target.

Published on June 16, 2026