Computer Age Management Services Limited

Technology — Information Technology Services · NSE

₹700.00−₹4.85 (−0.69%)

DalalBaazaar Score

77 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by high debt relative to equity, small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

The 60-second version of Computer Age Management Services Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Computer Age Management Services Limited provides registrar and transfer agency services, including data processing and related activities, to financial institutions in India.

IndustryInformation Technology Services

SectorTechnology

Employees8,410

Annual revenue₹1,516 Cr

How does it make money?

Turns over ₹1,516 Cr a year. Of every ₹100 of sales, about ₹31 reaches shareholders as profit, with ₹47 left at the operating level before interest, tax and depreciation. Each of its 8,410 employees supports ₹18.0 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹18.0 lakh

Who are its competitors?

The closest listed comparisons in its industry are TATA CONSULTANCY SERV LT, INFOSYS LIMITED, HCL TECHNOLOGIES LTD, WIPRO LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 44.2%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 36.0% against a peer median of 32.0% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE32.0%

What is the outlook?

18 analysts covering the stock expect revenue to grow about 13.9% and earnings to grow about 17.8% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+13.9%

Est. earnings growth+17.8%

Analysts18

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +56% while net margin moved +7% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+56%

Margin effect+7%

DalalBaazaar Score

77/ 100

Good

Weighted across six categories. Every point is explained below.

• P/E of 35.2x already prices in growth
✓ P/E is 23% below its own historical median of 45.8x — cheap by its own standards
✗ P/B of 13.14x is a steep premium to book

Quality vs. Valuation

Company Quality

85/ 100

Excellent

How good the business is, ignoring the share price entirely.

Valuation

45/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

35.2x

3Y Median

45.8x

40 monthly readings · mean 48.4x · range 32.9x–78.3x

Sector Median

16.5x

median of 4 sector peers

🟢Current valuation is approximately 23% below its 3y median of 45.8x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 113% above the peer median of 16.5x.

vs. its own history

Cheap

45.8x median over 40 months · -23%

vs. sector peers

Expensive

16.5x median of 4 peers · +113%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

24.5x

PEG

1.89

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 44.3% to 47.0% over 3 years.
Debt is being paid down
Total debt is down 31% over 3 years.
Cash generation is improving
Free cash flow is up 62% over 3 years.
Return on capital is rising
ROCE has improved from 41.8% to 44.2%.
High return on capital employed
ROCE of 44.2% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

2 items require attention · 1 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 4.86x — earnings must service borrowings before shareholders see anything.
🟡Low reported insider holdingOwnership
Reported insider holding is 3.1%. For Indian companies this field is an unreliable proxy — check the official promoter shareholding in the exchange filing.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 44.2% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 44.3% to 47.0%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 31% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 23% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 4.86x. Interest is payable whether or not the business has a good year.
A premium to the sector to defend
It trades 113% above the peer median. That premium needs a reason that persists, or it closes.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 12% a year✓ 16.0% CAGR
Latest reported year was 11.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 45%✓ 47.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹444 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 41%✓ 44.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

10 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 3 neutral · 2 weak

Market Cap

₹17,389 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

35.2x

Fair

Fairly valued against the generic band

P/B Ratio

13.14x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹19.88

Profitable

Profitable on a per-share basis

ROE

36.0%

Strong

Strong capital efficiency

ROCE

44.2%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

4.86x

High

High leverage

Revenue Growth (YoY)

11.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

17.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.83%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹444 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

27.0x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

40.0%

Good

Healthy core-business profitability

Net Margin

31.8%

Good

Strong bottom-line conversion

Current Ratio

3.43

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.16

Defensive

Steadier than the market

52W Range Position

38%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

692.5 / 727.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

47.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹972 Cr	₹1,137 Cr	₹1,422 Cr	₹1,516 Cr	+16.0%
EBITDA	₹431 Cr	₹520 Cr	₹672 Cr	₹713 Cr	+18.3%
EBITDA Margin	44.3%	45.8%	47.3%	47.0%	—
PAT (Net Profit)	₹285 Cr	₹354 Cr	₹470 Cr	₹476 Cr	+18.6%
EPS	₹11.58	₹14.34	₹19	₹19.13	+18.2%
ROE	36.5%	38.7%	42.0%	36.0%	—
ROCE	41.8%	42.9%	49.5%	44.2%	—
Total Debt	₹93 Cr	₹96 Cr	₹89 Cr	₹64 Cr	-11.7%
Free Cash Flow	₹274 Cr	₹363 Cr	₹359 Cr	₹444 Cr	+17.4%

🟢 Revenue has grown at 16.0% a year over 3 years.

🟢 EBITDA has grown at 18.3% a year over 3 years.

🟢 EBITDA Margin has risen from 44.3% to 47.0% over 3 years (+2.7 pts).

🟢 PAT (Net Profit) has grown at 18.6% a year over 3 years.

🟢 EPS has grown at 18.2% a year over 3 years.

🟡 ROE has held roughly flat at 36.0% over 3 years.

🟢 ROCE has risen from 41.8% to 44.2% over 3 years (+2.4 pts).

🟢 Total Debt has shrunk at 11.7% a year over 3 years.

🟢 Free Cash Flow has grown at 17.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,810 Cr

Total Liabilities

₹489 Cr

Cash & Equivalents

₹12 Cr

Operating Cash Flow

₹584 Cr

Capex

-₹141 Cr

Shareholding (proxy)

Institutional Holding

58.2%

Insider Holding

3.1%

Corporate Actions

Next Earnings

29 Oct 2026

Dividend Rate

₹12.8

Ex-Dividend Date

12 Aug 2026

Analyst Consensus

Recommendations

18 Buy · 1 Hold · 0 Sell

Target Price (Mean)

₹911.74

+30.2% vs CMP

Target Range

₹775 – ₹1,018

Peer Comparison

Company	P/E	ROE
TATA CONSULTANCY SERV LT	17.3x	45.6%
INFOSYS LIMITED	15.8x	32.0%
HCL TECHNOLOGIES LTD	20.4x	24.6%
WIPRO LTD	14.5x	15.9%

Recent News

2 mixed4 general

Computer Age Mngt Ser Share Price - Live NSE: CAMS Stock Price & Chart

Upstox, 16 Oct

Computer Age Management Services (NSEI:CAMS) Stock Forecast & Analyst Predictions

Simply Wall Street, 12 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Buy Computer Age Management Services; target of Rs 910: Geojit Financial Services

Moneycontrol.com, 15 Jun

Buy Computer Age Management Services Ltd for the Target Rs 940 by Motilal Oswal Financial Services Ltd

Investment Guru India, 05 Aug

Computer Age Management Services Stock Prediction 2026: Analyst Target, Forecast and Key Levels

Univest, 22 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

National Securities Depository Ltd Share Price

Business Today, 16 Oct

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
Reported insider holding is low — cross-check the official promoter shareholding % in the company's exchange filing.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability

MiddlingValuation · Risk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑