J&KBANK - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.4

📊 Core Financials & Profitability

Profit Growth: Quarterly PAT of ₹485 Cr, down from ₹585 Cr, but still strong. YoY profit variation of 16.7% indicates consistent performance.

Return Metrics

ROE: 15.7% — excellent, showing strong shareholder value creation.

ROCE: 6.14% — modest, typical for banks due to capital structure.

EPS: ₹19.5 — robust for a ₹105 stock, supporting valuation.

Debt Profile: Debt-to-equity at 10.2 — high, but expected for a bank due to its lending nature.

Dividend Yield: 2.06% — attractive for income-focused investors.

💸 Valuation Indicators

Metric Value Insight

P/E Ratio 5.35 Deeply undervalued vs. industry PE of 12.6.

P/B Ratio ~0.78 Undervalued relative to book value ₹134.

PEG Ratio 0.09 Extremely attractive — growth far outweighs valuation.

🔍 Conclusion: J&K Bank is trading at a significant discount to intrinsic value. PEG and P/E ratios suggest strong upside potential.

🏦 Business Model & Competitive Edge

Core Operations: Regional bank with strong presence in Jammu & Kashmir and Ladakh, expanding into pan-India retail and corporate banking.

Competitive Advantage

Deep local penetration and government-linked business.

Strong CASA ratio and improving asset quality.

Growth Outlook

Delivered 499.7% returns over 5 years

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Forecasted to reach ₹117–₹128 in 2025

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and ₹227+ by 2030

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📉 Technicals & Entry Zone

RSI: 56.9 — neutral, no strong momentum.

MACD: -0.39 — mild bearish signal.

DMA Levels: Price near both 50-DMA and 200-DMA — consolidation zone.

📌 Suggested Entry Zone: ₹100–₹105 — near support levels and technical averages.

🕰️ Long-Term Holding Guidance

Hold if Invested: Strong fundamentals, undervaluation, and regional dominance support long-term value.

Buy on Dips: Especially if price nears ₹100 or RSI dips below 50.

Monitor: Asset quality, NPA trends, and expansion into new geographies.

You can explore J&K Bank’s long-term forecast and targets or technical analysis-based price action levels for deeper insights. Let me know if you'd like a peer comparison with RBL Bank or Ujjivan next.

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stockpricearchive.com

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fincopanda.com

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walletinvestor.com

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