Everyone has been talking about how flows into mutual fund industry have been increasing. So, CAMS or Computer Age Management Services is a proxy play on the mutual fund industry.

CAMS listed in October 2021 at Rs 1518 and from there gained close to 165 percent to touch highs of Rs 3960. But since then stock has seen a one way of correction, down 42 percent from 52-week high level.

How is it a proxy play?

CAMS provides registrar & transfer agency (RTA) services to the mutual fund (MF) industry in India. RTAs are basically the trusts or institutions that register and maintain detailed records of the transactions of investors for the convenience of mutual fund houses. So this would include functions like operations and record keeping, compliance with regulators, distribution services to name a few. It also provides services like electronic payment collection, KYC registration, account aggregator, insurance services etc. It is also the central record keeping agency for National Pension Scheme (NPS).

The company enjoys a dominant position in the RTA market with a 70 percent share. This is a duopoly market with the other player being Karvy with 27 percent stake.

The company is promoted by Great Terrain Investment which is an affiliate of Warburg Pincus Group. It held around 30 percent stake post IPO out of which in December itself they sold 7.16 percent stake taking their stake now to 23.75 percent.

To discuss the road ahead for the company, CNBC-TV18 spoke to Anuj Kumar, CEO of CAMS.

Also on the ‘Swotlight’ segment Nigel D’Souza explains why Easy Trip Planners should be on the radar of investors.

Watch video for more.