Financial Services Stock Declares Record Date To Pay Dividend, Buy For 53% Return

Computer Age Management Services Ltd is a small cap company and operates in Financial Services sector. The company has fixed February 15, 2023 as record date to pay interim dividend, if declared. It has a market capitalisation of Rs 10,865 crore. Meanwhile, leading brokerage firm Bonanza has given buy call to CAMS with a target price of Rs 3400 implying a return of 53% from current market price of Rs 2217.
Check key details pertaining to interim dividend and about the stock below:

1. CAMS Fixes Record Date For Interim Dividend

The board of directors of the company stated in the BSE filing, "Pursuant to Regulation 29 of the SEBI Listing Regulations we would like to inform you that a meeting of the Board of Directors (the "Board") of the Company is scheduled to be held on Tuesday, 07th February 2023 ("Meeting"), inter alia to consider and approve the Unaudited Financial Results (Standalone and Consolidated), for the quarter ended December 31, 2022.

The Board will also consider payment of Interim Dividend. The record date for ascertaining the shareholders entitled for the interim dividend, if any approved by the Board, will be 15th February, 2023."

2. CAMS Stock Performance

The last trading price of the stock is Rs 2217 apiece. The stock's 52-week high is Rs 2985 and 52-week low is Rs 2039 apiece, respectively.

3. CAMS Return & Financial Performance

The stock has declined 2% in last 1-month, 10% in last 3-months, and 20% in last 1-year. The company for the quarter ended September 30, 2022 declared a consolidated total income of Rs 249 crore, up a little above 3% from previous quarter total income of Rs 241 crore. It has announced a net profit after tax at Rs 72 crore in the latest quarter.

4. About CAMS

CAMS is a technology driven financial infrastructure and services provider to Mutual Funds and other financial institutions for over 25 years. As the market leading Registrar and Transfer Agency to the Indian Mutual Fund industry, CAMS serves ~69% of the average assets under management - as of Sep. 2022.

It also provides technology enabled service solutions to Alternative Investment Funds and Insurance Companies. Besides serving as a B2B service partner, CAMS also serves customers through a variety of touch points such as pan-India network of service centres, white label call centre, online, mobile app and chatbot, among others, according to its official website.

5. Valuation

According to Bonanza, "We expect that a lot of downside has already priced in but uncertainty in the markets is still prevailing. We believe CAMS has a huge potential to grow so we maintain a BUY, 45x PE which is its all-time average on FY24E EPS of ₹ 75.6, for a target price of ₹ 3,400, a potential upside of 44%."

Disclaimer

The stock has been picked from the brokerage report of Bonanza. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.