Company Introduction
Headquarters Location: Pune, India
Core Business Summary: CMS Info Systems Limited is a leading provider of cash management and payment solutions in India.
Overview
₹ 360
16.04
22
₹ 5,921 Cr
Company Overview
Industry Sector: Financial Services
Industry Trends
Industry Growth Next 5 Years: The Indian financial services industry is expected to grow at a CAGR of 10-12% over the next 5 years.
Key Demand Drivers: Increasing demand for digital payments, growing e-commerce industry, and government initiatives to promote financial inclusion
Last 5 Year Cagr Industry Growth: The Indian financial services industry has grown at a CAGR of 15% over the last 5 years.
Major Competitors: Companies like SIS, Writer Corporation, and Securevalue India are major competitors in the cash management and payment solutions space.
Financials
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|---|---|
| Revenue | 1,146 | 1,383 | 1,306 | 1,590 | 1,915 | 2,265 | 2,425 |
| YoY % | +20.7% | -5.6% | +21.7% | +20.4% | +18.3% | +7.1% | |
| EBITDA | 252 | 311 | 357 | 492 | 670 | 749 | 788 |
| YoY % | +23.4% | +14.8% | +37.8% | +36.2% | +11.8% | +5.2% | |
| Net Profit | 96 | 135 | 169 | 224 | 297 | 347 | 372 |
| YoY % | +40.6% | +25.2% | +32.5% | +32.6% | +16.8% | +7.2% | |
| EPS | 6.50 | 9.10 | 11.39 | 14.63 | 19.25 | 21.33 | 22.66 |
| YoY % | +40.0% | +25.2% | +28.4% | +31.6% | +10.8% | +6.2% |
Growth Drivers
Historical Growth Drivers: The company's growth has been driven by its strong position in the cash management and payment solutions space, with a market share of around 25%.
Future Growth Drivers: The company is expected to benefit from the growing demand for digital payments, with the Indian digital payments market expected to reach $1 trillion by 2025.
Product Innovation: The company has been investing in new technologies like AI and cloud to improve its services and stay competitive.
Strategic Partnerships: The company has partnered with several banks and financial institutions to expand its reach and offer new services.
Market Position
Competitive Position: The company is a leading player in the cash management and payment solutions space in India.
Estimated Market Share: 25%
Technological Moat: The company has a strong technology platform and a large network of cash handling machines, which provides a significant barrier to entry for new competitors.
Strengths
- The company has a strong position in the cash management and payment solutions space, with a market share of around 25%.
- The company has a large client base, including several major banks and financial institutions.
- The company has been investing in new technologies like AI and cloud to improve its services and stay competitive.
- The company has a large network of cash handling machines, which provides a significant barrier to entry for new competitors.
Weaknesses
- The company is subject to various regulations and laws, and changes to these regulations could negatively impact the company's business.
- The company faces competition from new players in the market, who may offer lower prices or more innovative services.
- The company's business is dependent on a few large clients, and the loss of any of these clients could negatively impact the company's revenue.
- The company's business is subject to cybersecurity risks, and a breach of the company's systems could negatively impact the company's reputation and business.
Valuations
Valuations for CMSINFO
| Formula | Bull | Base | Bear | Margin of Safety |
|---|---|---|---|---|
| Ben Graham | ₹ 402 | ₹ 402 | ₹ 148 | 10.4% |
| Peter Lynch | – | ₹ 227 | – | -58.9% |
Rule of thumb (Lynch):
PEG ≈ 1 → Fairly valued
PEG < 1 → Undervalued (growth cheap relative to earnings)
PEG > 1.5 → Overvalued
Outlook
Balanced Forward Looking Analysis: The company is expected to benefit from the growing demand for digital payments and its strong position in the cash management and payment solutions space. However, the company faces risks from regulatory changes, competition from new players, and cybersecurity risks.
Opportunities: The company has opportunities to expand its services to new clients and to offer new services, such as payment processing and transaction processing.
Risks: The company faces risks from regulatory changes, competition from new players, and cybersecurity risks.
Horizon: 3-5 years
Stock Price Performance
| 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|
| Price | 271.00 | 284.80 | 389.10 | 482.35 |
| YoY % | +5.1% | +36.6% | +24.0% |
Stock 3 Year Rolling CAGR
| Metric | 2021 | 2022 | 2023 | 2024 | 2025 | Average |
|---|---|---|---|---|---|---|
| Revenue | 4.45% | 4.76% | 13.61% | 12.52% | 8.19% | 8.71% |
| EBITDA | 12.31% | 16.52% | 23.35% | 15.04% | 5.56% | 14.56% |
| Net Profit | 20.75% | 18.39% | 20.68% | 15.71% | 7.79% | 16.66% |
| EPS | 20.56% | 17.15% | 19.12% | 13.39% | 5.59% | 15.16% |
| Price | – | – | – | 12.81% | 19.20% | 16.01% |
