CMS info systems IPO Should i Buy, Review & Details

CMS info systems IPO. We hear a lot of times that banks outsource these ATMs to a vendor and this vendor does all the work to keep ATMs always full of cash. We can see in India lot of people need urgent cash and the first thing that comes to their mind is ATM. We go and remove cash by just using our bank cards. Now the main thing here is who owns these ATMs. First, in your mind it will come that each bank has their ATMs then they would be owning it. But no these ATMs are outsourced by banks. Such a company is CMS Infosystems. It is one of the largest cash management companies.

CMS info systems IPO
CMS info systems IPO

The main task of the company is to maintain, install, and manage assets and technology solutions under a long-term contract. They are the one who keeps security guards in the ATM. Whenever there is any shortage of cash at whatever point of time they will be filling cash in the ATM and maintaining the ATMs. So, here is the question how does this company earn money. It’s simple to process. This is the service provided to the banks and in return, they would take some service charge so that ATMs don’t run on cash.

CMS info systems IPO Review

As the company is one of the largest cash management services providers we can see the revenue has been increased from 1,150 Crores in 2019 to 1,322 Crores in 2021. The company is earning a good amount of profits from its business. The profits have been increased from 96 crores in 2019 to 169 crores in 2021. We can see steady growth here.
Apart from its revenue and profits, we can analyze that today every person uses ATM when he is out of cash. We can see rural area also has ATMs. The growth of the company is going to increase in the future. And as said they are into long-term contacts. So there is nothing as the risk involved of losing its clients.

This all seems like we are just talking about the positive side of the business but in this digital world, there are many disadvantages too. The first is online payments. The Indian government is promoting digitization around the country and every small business person has now QR codes and they are transfer money instantly within a second. Increasing literacy rate shows that in coming years technology will be at its best use so people will adapt to transferring money instead of going to ATM and withdrawing cash which takes a lot of time. Fast-moving economy people see that their work should be done instantly.

Generally, all of the world now uses most of the apps to transfer money which is bad for the company if ATMs don’t come in use they can lose their client and very few will be in use. Their cost will be increased as less usage and maintaining the ATM will be more costly for them. In the current tread, the company has a huge demand. Most people are attracted to the IPO. One can invest for small to medium term to earn good handsome money.

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