CAMS stock split explained: Last day to buy shares before division; what you need to know

CAMS Shares stock split: Computer Age Management Services (CAMS) will turn ex-date for stock split on Friday, December 05. The stock would split from face value of Rs 10 each into five shares with face value of Rs 2 each. Today is the last day to buy the stock to be eligible for the aforementioned corporate action due to T+1 settlement. The stock will be available at adjusted value from Friday.

This means if an existing investor already owns one share of Computer Age Management Services, he will get four additional new shares as holding of shares would now be five shares instead of one share. The two corporate actions would result in a sharp price action on the counter. The stock split would turn one stock into five shares.

The corporate actions are aimed at improving share liquidity and affordability, making the company’s equity shares more accessible and encouraging wider retail investor participation. Stock split will not only adjust the face value of the stock but also adjust the trading prices in the similar fashion.

While both bonus issues and stock splits may appear similar, their purpose is different. A bonus issue rewards shareholders with free additional shares, funded out of accumulated earnings, keeping the face value unchanged. A stock split, on the other hand, breaks existing shares into smaller units to boost liquidity, which reduces the face value.

For instance, in a 1:5 stock split, each share is divided into five stocks, with the dividend entitlement shrinking proportionally. In a bonus issue, however, the dividend entitlement remains unaffected. Split shares are credited to investors' demat account within one to two working days after the record date.

In the case of stock split, CAMS intends to complete the corporate action on or before December 05, subject to necessary approvals. The impact of a stock split issue is straightforward as it increases the number of shares in circulation, which trims the earnings per share (EPS).

CAMS reported revenue from operations of Rs 376.74 crore, up 3.2 per cent year-on-year (YoY), and a net profit of Rs 114.94 crore, down 5.7 per cent YoY, for the quarter ending September 2025. Despite record-high quarterly revenue, its PAT declined due to a drop in profitability. The company's board also approved an interim dividend of Rs 14 per equity share.

CAMS was listed on Dalal Street in September 2020, when the company raised a total of Rs 2,243.12 crore via primary market by selling its shares for Rs 1,230 apiece. The stock settled at Rs 3,861.30 on Thursday, up nearly 215 per cent from its IPO price, without adjusting the dividend. CAMS has been a consistent dividend yielding stock, with nearly 22 dividends post listing.

Motilal Oswal Financial Services has a 'buy' rating on CAMS with a target price of Rs 4,900, while Elara Capital has an 'accumulate' rating on CAMS with a target price of Rs 4,400. Anand Rathi Share & Stock Brokers also has a 'buy' rating on the stock with a target price of Rs 4,897 but has cited macro-economic uncertainty and lower fees to RTAs due to reduction in TERs as key risks.