JMFINANCIL - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.5

Here’s a focused analysis of JM Financial (JMFINANCIL), laying out its strengths, risks, and long-term potential 💰

🧾 Core Financials Breakdown

Profitability

ROE (8.49%) and ROCE (9.39%) are on the lower side, reflecting subdued capital efficiency.

EPS of ₹8.59 supports a moderate P/E valuation but lacks punch to drive re-rating on its own.

Quarterly Results

PAT rose slightly from ₹207 Cr. to ₹210 Cr. — steady but not spectacular.

Qtr Profit Var at 782% likely includes one-off or base effect–worth digging into past results for clarity.

Leverage

Debt-to-equity of 1.18 is typical for NBFCs, though a tad on the higher side.

Needs strong asset quality and cash flow management to remain healthy.

Dividend Yield

1.65% — decent for passive income seekers.

📊 Valuation Indicators

Metric Value Interpretation

P/E Ratio 20.2 Slightly below sector average (22.6)

P/B Ratio ~1.6 Attractive vs book value of ₹102

PEG Ratio -2,021 Likely distorted due to anomalous profit growth

📉 Verdict: Despite a low PEG ratio, it’s likely skewed by profit spikes. Still, current price seems fair—not cheap, not expensive.

🧠 Business Model & Competitive Position

JM Financial is a diversified NBFC spanning retail lending, asset management, investment banking, and ARC business.

Strong presence in capital markets and advisory, but faces margin pressure from intense competition and regulatory shifts.

Recent increase in FII (+0.21%) suggests some foreign interest.

DII holdings declined (-0.54%), indicating cautious domestic stance.

📍 Entry Zone Guidance

Current Price: ₹163, trading above both DMA-50 ₹152 and DMA-200 ₹126 — bullish setup.

RSI: 50.4 and MACD: 4.90 — momentum is neutral, possibly preparing for next move.

📌 Suggested Entry Zone

If it dips near ₹150–₹155 and technicals turn positive again, it could be a decent entry.

Strong support likely in ₹140–₹145 range if broader sentiment weakens.

⏳ Long-Term Outlook

Steady performer in a cyclical segment.

Watch for trends in loan book quality, interest rate spreads, and regulatory changes.

Best held as part of diversified portfolio exposure to financial services.

Want to contrast JM Financial with Edelweiss or Motilal Oswal next? A peer group look might reveal a clearer winner 🏆.

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