Jefferies has maintained a buy rating on CMS Info Systems but cut its target price to ₹445 from earlier levels, reflecting expectations of softer business trends in FY26 before normalisation from FY27 onwards.
Management commentary highlighted that core revenue growth is expected to remain moderate, at around 12% compound annual growth rate over FY25–30, with margins likely to stay stable. However, near-term softness will weigh on the company’s performance.
Jefferies said expansion of the ATM network will continue to be a key driver for CMS Info’s cash management business, while the retail cash segment is poised to deliver aggressive market share gains. The company’s technology and payment solutions arm is expected to post stronger growth, with management actively evaluating merger and acquisition opportunities to enhance capabilities.
Reflecting a slower-than-expected trajectory, Jefferies has cut its earnings per share estimates for the company by 7–10%. Despite this, it remains constructive on the long-term prospects of CMS Info, citing structural growth drivers in cash logistics and digital payment solutions.
Disclaimer: The views and recommendations above are those of Jefferies. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.