JMFINANCIL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.9
| Stock Code | JMFINANCIL | Market Cap | 13,302 Cr. | Current Price | 139 ₹ | High / Low | 200 ₹ |
| Stock P/E | 16.6 | Book Value | 48.0 ₹ | Dividend Yield | 1.94 % | ROCE | 12.8 % |
| ROE | 12.6 % | Face Value | 1.00 ₹ | DMA 50 | 131 ₹ | DMA 200 | 138 ₹ |
| Chg in FII Hold | -0.55 % | Chg in DII Hold | 0.12 % | PAT Qtr | 290 Cr. | PAT Prev Qtr | 246 Cr. |
| RSI | 60.2 | MACD | 3.54 | Volume | 34,39,643 | Avg Vol 1Wk | 24,89,162 |
| Low price | 94.8 ₹ | High price | 200 ₹ | PEG Ratio | 0.92 | Debt to equity | 0.01 |
| 52w Index | 42.2 % | Qtr Profit Var | 263 % | EPS | 8.39 ₹ | Industry PE | 17.5 |
Financials: JM Financial (JMFINANCIL) shows moderate fundamentals with ROCE at 12.8% and ROE at 12.6%. EPS of ₹8.39 supports profitability, while quarterly PAT improved to ₹290 Cr. from ₹246 Cr. Debt-to-equity ratio of 0.01 reflects a near debt-free balance sheet.
Valuation: P/E of 16.6 is slightly below industry average (17.5), suggesting fair valuation. PEG ratio of 0.92 indicates balanced growth-adjusted pricing. Dividend yield of 1.94% adds investor appeal.
Business Model: JM Financial operates in diversified financial services, with strengths in investment banking, asset management, and lending. Competitive advantage lies in diversified revenue streams and strong domestic presence.
Entry Zone: Attractive entry between ₹135–₹140 near DMA 200 (₹138). Long-term holding favorable due to stable fundamentals and dividend yield.
Positive
- EPS of ₹8.39 reflects consistent profitability
- Low debt-to-equity ratio (0.01) ensures financial stability
- Dividend yield of 1.94% adds steady income support
- Quarterly PAT growth (+263%) highlights strong earnings momentum
Limitation
- ROE (12.6%) and ROCE (12.8%) are modest compared to peers
- RSI at 60.2 signals nearing overbought conditions
- FII holdings reduced (-0.55%), showing foreign investor caution
- Valuation only slightly below industry average, limiting upside
Company Negative News
- Decline in foreign institutional confidence
- RSI nearing overbought zone increases short-term risk
Company Positive News
- Strong quarterly profit growth (+263%)
- Increased domestic institutional inflows (+0.12%)
- Technical indicators (MACD 3.54) show bullish bias
Industry
- Financial services sector benefits from credit demand and diversified products
- Industry P/E at 17.5 highlights JM Financial trading at fair valuation
Conclusion
JM Financial presents moderate fundamentals with strong quarterly earnings growth, low debt, and attractive dividend yield. Entry around ₹135–₹140 offers a favorable risk-reward opportunity. Long-term investors can benefit from stable profitability and sector resilience, though monitoring institutional flows and valuation trends remains essential.
Would you like me to extend this into a peer benchmarking overlay comparing JM Financial against Motilal Oswal, Edelweiss, and IIFL, so you can evaluate relative valuation and efficiency in a modular HTML format?