CAMS Shares Fall 3% After Q4 Print: Citi Maintains ‘Sell’ While SEBI RA Sees ₹3,900 Breakout

Citi cited a 10% quarter-on-quarter dip in core profit, slower non-mutual fund revenue growth, and concerns over pricing stability and short-term profitability pressures.

Shares of Computer Age Management Services (CAMS) fell nearly 3% on Tuesday following a tepid reaction to its fourth-quarter results and a bearish call from Citi.

CAMS, which provides tech-enabled services to mutual funds and other financial institutions, reported a net profit of ₹114 crore, marking a 10.1% year-on-year increase, while revenue rose 14.7% to ₹356 crore.

EBITDA grew by 11.2% to ₹159.3 crore, but the EBITDA margin declined slightly to 44.7%, down from 46.1% a year ago. 

CAMS also declared a ₹19 per share dividend.

Despite the growth in headline numbers, analysts remain cautious. 

Citi retained its ‘Sell’ rating with a target price of ₹3,055 — implying a 20% downside — citing a 10% quarter-on-quarter dip in core profit, slower non-mutual fund revenue growth, and concerns over pricing stability and short-term profitability pressures.

Motilal Oswal, however, maintains a more constructive long-term view. The brokerage expects structural tailwinds in the mutual fund industry to support absolute growth in MF revenues. 

From a technical perspective, SEBI-registered analyst Kavan Patel notes ₹3,900 as the key resistance level. “Only above this level can we expect fresh long positions to build,” he said, suggesting that the short-term trend hinges on a decisive breakout above this threshold.

On Stocktwits, data shows that retail sentiment turned ‘bullish’ from ‘neutral’ a week ago. 

CAMS shares have fallen 27% (YTD)

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