CMS Information turns ‘money chips’ as inventory doubles from IPO value

Shares of CMS Information Techniques have been on the rise on on Friday hit an all-time excessive of ₹474.20 on the BSE, as analysts remained bullish on the inventory as a result of its robust fundamentals, in addition to future development potential. The inventory closed at ₹465.25 — a acquire of 115 per cent for its IPO buyers.

• Additionally learn:ixigo’s dad or mum agency says present buyers promote shares value ₹176 crore in pre-IPO spherical

Jefferies, international funding advisory agency, mentioned Revenues can develop at 30 per cent+ CAGR and share might rise from 5-7 per cent of whole with good margins. CMS is about to ramp up distant monitoring system that’s on stronger platform & utilized at 25k+ ATMs, financial institution/ NBFCs/ insurance coverage branches & stores. “Scale-up of RMS, diversification into bullion-logistics and collections with money administration development will support 20 per cent CAGR in revenue,” it mentioned. Jefferies remained Purchase on the inventory with a value goal of ₹600.

The corporate is into money administration and is engaged in putting in, sustaining and managing belongings and expertise options on an end-to-end outsourced foundation for banks, monetary establishments, organised retail and e-commerce corporations in India. It launched its IPO in December 2021 with a value band of ₹205-216.

Brokerages upbeat

Asian Market Securities, in a notice, mentioned: “We preserve a Purchase score on the corporate and revised FY26E P/E a number of from 16x to 18x, contemplating robust income visibility and order e book wins, leading to a goal value of ₹560 primarily based on FY26 EPS estimate of ₹31.”

The corporate has a dividend payout ratio of about 25 per cent, it mentioned including that CMS Information has demonstrated robust market management positions, with enticing margin and return profile.

In accordance with IIFL Securities, which additionally maintained its Purchase stance on the inventory with a goal value of ₹520, mentioned CMS expects FY25 income within the higher half of ₹2,500-2,700 crore. Administration highlighted vital development alternatives in Retail Money Administration (RCM) and AIoT distant monitoring whereas stating its intent to develop into assortment companies and specialised logistics.

One other home brokerage DAM Capital (previously IDFC Securities) mentioned: “Our thesis on CMS Information Techniques as an economical companion for non-core operations for the BFSI business stays intact. Measurement, scale advantages and debt free/money wealthy stability sheet present it an envious aggressive benefit in CM – a rising, money producing enterprise – which in flip helps it deepen its attain in varied MS verticals whereas additionally rising wallet-share with present shoppers.”

• Additionally learn:New norms to widen promoter ambit for IPO-bound corporations

JM Monetary believes CMS proceed to stay on a robust footing given its sturdy enterprise mannequin, vital market management within the CM section (market share improved from 39 per cent in FY19 to 49 per cent in FY24), robust monitor file of diversification and robust earnings development and return profile (FY25E RoIC >35 per cent).

Axis Securities CMS Information’s clients for money administration embrace India’s High-5 PSU banks and High-3 non-public banks. It is usually trying to cross-sell its managed companies choices to those clients and has been profitable with banking-automation merchandise, and distant monitoring choices.