CAMS Ltd - Q4 FY21 Result Update - YES Securities

(Rating: BUY, TP: Rs Rs2,636, Upside: 9%)

- Revenue at Rs.2bn was almost in line with our estimate. It was a growth of 14% on YoY basis and 7% on sequential basis. Asset based MF revenue was higher by 18.5% yoy, Non-asset based MF revenue jumped 20.9% yoy, whereas non-MF revenue was lower by 15.9% yoy

- EBITDA stood at Rs.891mn against our estimate of Rs.886mn. EBITDA margin stood at 45% against our estimate of 44%, PAT came at Rs.602mn grew by 40% on yoy basis and 7% on sequential basis

- Company expects share of non MF revenues to increase going ahead and expects its share to rise to 20% over the medium term. Integration of FT as a client has witnessed some delay owing to the pandemic.

- Post the strong performance in Q4 FY21, we have upgraded our earnings estimates for FY22 and FY23 by 6% and 10% respectively. Maintain our BUY rating given the strength in franchise depicted by an expected 20%+ earnings CAGR, 40%+ RoE and 60%+ dividend payout.

Source : Equity Bulls

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