Computer Age Management Services Limited

“CAMS is India's dominant mutual fund registrar — a regulated duopoly tollbooth with 68% AUM market share, 39% operating margins, 38% ROE, zero net debt, and a multi-decade structural tailwind from India's savings financialization. The business quality is near-exceptional. The problem is price: at 40x trailing and 30x forward earnings on 10-11% growth, the 10-year return math delivers roughly 9-11% CAGR at best — uninspiring for the starting multiple. The only material risk is regulatory intervention (SEBI fee compression or utility restructuring), and the current valuation provides zero cushion for that scenario. TRACK for a 20-25% correction to the INR 580-650 range before building a meaningful position.”