CAMS shares sink over 8% despite stellar Q3 earnings as market jitters take hold

Shares of Computer Age Management Services Ltd (CAMS) tumbled upto 8% to ₹3,628.60 on the BSE at 1.30 pm on Thursday, even as the company reported a robust 40.5% year-on-year surge in net profit to ₹125.5 crore for Q3 FY25, up from ₹89 crore in the same period last year.

The financial services firm posted a 28% rise in revenue, reaching ₹369.7 crore compared to ₹289.6 crore in Q3 FY24. EBITDA also saw a strong uptick, climbing 33.5% to ₹172.3 crore from ₹129 crore a year earlier. Despite the healthy earnings, CAMS shares extended their recent slide, reflecting broader market pressures.

The stock, which touched a 52-week high of ₹5,367.45 on December 12, 2024, has slumped over 28% in the past month, with an intraday low of ₹3,615 on the NSE today. Similar declines have been seen across capital market-focused stocks, including CDSL and Angel One, as sector-wide profit booking and valuation concerns intensify.

Market sentiment remains fragile amid geopolitical uncertainties, persistent foreign institutional investor (FII) outflows, and volatility in mid- and small-cap stocks. Analysts point to high valuations following a prolonged rally and fears of fresh U.S. tariffs under Donald Trump’s presidency as additional headwinds.

Broader macroeconomic challenges, including sluggish domestic growth and elevated U.S. bond yields, continue to weigh on investor confidence, prompting a cautious outlook for capital market stocks.