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JMFINANCIL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.8
| Stock Code | JMFINANCIL | Market Cap | 12,135 Cr. | Current Price | 127 ₹ | High / Low | 200 ₹ |
| Stock P/E | 15.1 | Book Value | 48.0 ₹ | Dividend Yield | 2.13 % | ROCE | 12.8 % |
| ROE | 12.6 % | Face Value | 1.00 ₹ | DMA 50 | 131 ₹ | DMA 200 | 141 ₹ |
| Chg in FII Hold | -0.67 % | Chg in DII Hold | 0.15 % | PAT Qtr | 290 Cr. | PAT Prev Qtr | 246 Cr. |
| RSI | 50.6 | MACD | -3.26 | Volume | 65,28,344 | Avg Vol 1Wk | 42,91,408 |
| Low price | 78.0 ₹ | High price | 200 ₹ | PEG Ratio | 0.84 | Debt to equity | 0.01 |
| 52w Index | 40.0 % | Qtr Profit Var | 263 % | EPS | 8.39 ₹ | Industry PE | 16.9 |
📊 Core Financials
- Revenue Growth: PAT improved to ₹290 Cr from ₹246 Cr
- Profit Margins: Moderate with ROE at 12.6% and ROCE at 12.8%
- Debt Ratios: Very low (Debt-to-Equity 0.01), strong balance sheet
- Cash Flows: Dividend yield of 2.13% provides decent shareholder returns
- Return Metrics: Efficiency is average compared to peers
💹 Valuation Indicators
- P/E Ratio: 15.1 (below industry average of 16.9, undervalued)
- P/B Ratio: ~2.6 (Price ₹127 / Book Value ₹48)
- PEG Ratio: 0.84 (suggests fair valuation relative to growth)
- Intrinsic Value: Attractive compared to peers, offering value opportunity
🏢 Business Model & Competitive Advantage
- Operates in financial services, investment banking, and lending
- Competitive advantage lies in diversified offerings and strong institutional presence
- Low debt structure enhances financial resilience
📈 Entry Zone Recommendation
- Current Price: ₹127
- Support Zone: ₹120 – ₹130 (near DMA 50 & DMA 200, RSI at 50.6 indicates neutral momentum)
- Long-term Holding: Attractive for value investors given low P/E and strong dividend yield
✅ Positive
- Low P/E ratio compared to industry average
- Strong dividend yield of 2.13%
- Quarterly PAT growth shows operational improvement
⚠️ Limitation
- ROE and ROCE are modest compared to industry leaders
- Valuation upside limited by average efficiency
- Stock trading below DMA 200 indicates weak momentum
📉 Company Negative News
- FII holdings decreased (-0.67%), showing reduced foreign investor confidence
- Technical indicators (MACD negative) reflect weak short-term trend
📈 Company Positive News
- Quarterly PAT improved (₹290 Cr vs ₹246 Cr)
- DII holdings increased (+0.15%), showing domestic support
- Quarterly profit variation of 263% YoY indicates strong growth momentum
🌐 Industry
- Financial services industry remains stable with steady demand
- Industry P/E at 16.9 highlights JMFINANCIL trading at a discount
🔎 Conclusion
JMFINANCIL demonstrates undervaluation with low P/E and PEG ratios, supported by strong dividend yield and low debt. While profitability metrics are modest, the company’s stability and growth momentum make it attractive for value investors. Entry around ₹120–₹130 offers a favorable risk-reward profile, making it suitable for long-term holding with cautious optimism.