Computer Age Management Services Limited (NSE:CAMS) Just Reported, And Analysts Assigned A ₹4,293 Price Target

There's been a notable change in appetite for Computer Age Management Services Limited (NSE:CAMS) shares in the week since its quarterly report, with the stock down 12% to ₹3,604. Computer Age Management Services reported ₹3.7b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of ₹25.33 beat expectations, being 3.7% higher than what the analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. 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.

Check out our latest analysis for Computer Age Management Services

Taking into account the latest results, the current consensus from Computer Age Management Services' 14 analysts is for revenues of ₹15.9b in 2026. This would reflect a meaningful 15% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to climb 13% to ₹105. In the lead-up to this report, the analysts had been modelling revenues of ₹16.6b and earnings per share (EPS) of ₹115 in 2026. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

The consensus price target fell 9.5% to ₹4,293, with the weaker earnings outlook clearly leading valuation estimates. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Computer Age Management Services at ₹5,168 per share, while the most bearish prices it at ₹3,099. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The period to the end of 2026 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. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 15% per year. So it's pretty clear that Computer Age Management Services is expected to grow slower than similar companies in the same industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Computer Age Management Services. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Computer Age Management Services' future valuation.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Computer Age Management Services going out to 2027, 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 that we have uncovered.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.