Analysts Are Updating Their Computer Age Management Services Limited (NSE:CAMS) Estimates After Its Second-Quarter Results
Computer Age Management Services Limited (NSE:CAMS) last week reported its latest quarterly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Computer Age Management Services reported ₹4.1b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of ₹5.27 beat expectations, being 3.3% higher than what the analysts expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Computer Age Management Services after the latest results.
Taking into account the latest results, the consensus forecast from Computer Age Management Services' 18 analysts is for revenues of ₹16.9b in 2027. This reflects a satisfactory 6.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 5.4% to ₹21.70. In the lead-up to this report, the analysts had been modelling revenues of ₹16.9b and earnings per share (EPS) of ₹21.98 in 2027. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
See our latest analysis for Computer Age Management Services
The analysts reconfirmed their price target of ₹898, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Computer Age Management Services, with the most bullish analyst valuing it at ₹1,016 and the most bearish at ₹773 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 12% growth on an annualised basis. That is in line with its 14% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 12% annually. So although Computer Age Management Services is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that in mind, we wouldn't be too quick to come to a conclusion on Computer Age Management Services. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Computer Age Management Services analysts - going out to 2029, and you can see them free on our platform here.
Before you take the next step you should know about the 2 warning signs for Computer Age Management Services (1 can't be ignored!) that we have uncovered.
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