Should you invest in CAMS IPO?

Sathish - Wealth Consultant, Author - Untold Wealth Secret, Investment consultant, Mutual Funds

Should you invest in CAMS IPO?

CAMS IPO opens today with share prince band of 1229 – 1230 and this issue closes at 23rd Sep.

Chennai Head quartered CAMS is India’s Largest RTA with 70% of Market Share with more than 2 decade of experience. Their Mutual Funds clients includes 4 out of 5 largest Mutual Funds in India and 9 out of 15 Largest Mutual Funds with Huge Assets Under Management

CAMS have well diversified portfolios with largest pan India physical network, Risk Management and Domain Expertise.

Strengths of CAMS

  • Long standing relationship with Largest Mutual Fund Companies
  • Scalable Technology eco system
  • Maintaining the leadership position with largest market share
  • Healthy Financials over FY 17 to 20 – Their EBITDA, Profit after tax are growing at a 14%, 13% and 12%
  • Balance sheet is also healthy with zero debt and negative working capital
  • Impressive Return Ratios of ROE and ROCE with 35% and 37%

Risk Area alert

  • As a RTA they are always under the purview and audit of SEBI and AMFI
  • Non compliances can cost more for the company
  • CAMS derive major revenues only from top 5 clients – Slippage of one or more client my affect company profit

Conclusion

With the company leadership positions integrated business model, Pan India Geographic presence and healthy financials – I recommend this IPO for both listing gains and as a long term investment

To review your Equity Portfolio and for Direct Stock Recommendation, pls call me at 9841058689

One call can change your Equity Portfolio forever.

click this link to open a Demat and Invest in Direct Stocks with my Recommendation

https://app.aliceblueonline.com/openAccount.aspx?C=SSP03

Sathish Kumar

Equity Fund Manager | Wealth Consultant | Author

Whats app / Call – 9841058689

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