New Target for CAMPS

CAMS earns around 12% of its revenue from non-mutual fund (MF) segments like AIF/PMS RTA, CAMSPay, Think360, CAMS KRA, and CAMSRep. These segments are expected to grow faster than the MF segment in the coming years. In the AIF/PMS RTA segment, affluent investors have been increasing their investments, resulting in a 22%/20% compound annual growth rate (CAGR) for non-EPFO PMS AUM/AIF funds. CAMS holds about 50% market share in funds using RTA services, and demand for these services is expected to grow due to increased adoption by existing funds and new launches. CAMSPay, a key player in digital transactions for asset management companies (AMCs), is likely to see healthy growth as digital transactions become more popular. CAMSPay also plans to expand its services to other financial sectors.There is a focus on expanding non-MF businesses to increase their share to 20% in the future. Currently, we recommend buying the stock with a target price of INR 3,450.