Motilal Oswal said CAMS’ mutual fund assets under management (AUM) growth has picked up in the recent past, supported by sustained systematic investment plan (SIP) inflows and mark-to-market (MTM) gains. It expects this momentum to continue, given the rising adoption of mutual funds as a savings product.
Direct investing via discount brokers has also gained traction, and with mutual fund penetration still at 4%, the brokerage expects this trajectory to sustain. CAMS is well-positioned to benefit from this trend, it said.The company also continues to reinforce its position in the mutual fund industry, holding 68% market share and service AUM size of ₹44.10 lakh crore at the end of financial year 2025, Motilal Oswal said. The company managed around 132 new fund offers last fiscal, mobilising a cumulative amount of ₹73,400 crore, it said.
The brokerage is expecting CAMS’ yield headwinds to be partly offset by 12% – 14% AUM growth, improving traction in non-mutual fund segments such as payments, alternatives, KRA, and operating leverage.
For CAMS Pay, which witnessed significant growth in UPI-based mandate registrations, gaining 25% sequentially in the fourth quarter of FY25, the brokerage said that with strong backend integrations, it is positioned to become a critical layer in recurring digital payments infrastructure for financial services.The brokerage said CAMSRep reported strong volume growth, driven by rising adoption of e-policies issued by BIMA Central and higher insurer integration. Favourable regulations around the dematerialisation of life insurance policies have aided this momentum as well, it said.
The brokerage said it has largely maintained its earnings estimates for FY26 and FY27, as healthy AUM growth and increasing traction in non-mutual fund segments are expected to offset the decline in yields, as guided by the management.
Motilal Oswal’s price target of ₹5,000 for CAMS, prices the stock at 42 times its financial year 2027 earnings.
Of the 15 analysts that have coverage on the stock, 11 have a “buy” rating, three have a “hold” rating and one has a “sell” rating.
CAMS shares ended the previous session 1.4% higher. The stock has declined 19% this year, so far. The stock will be trading ex-dividend on Tuesday, July 15.
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