JMFINANCIL - Fundamental Analysis: Financial Health & Valuation

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

Fundamental Rating: 4.3

📊 Financials & Profitability

Profit Growth: PAT surged from ₹132 Cr to ₹133 Cr — stable quarter-on-quarter, but the 285% YoY profit variation is impressive

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Return Metrics

ROE: 12.6% and ROCE: 12.8% — solid, indicating efficient capital deployment.

EPS: ₹6.67 — decent for a mid-cap financial services firm.

Debt Profile: Debt-to-equity of just 0.01 — virtually debt-free, a major strength.

Dividend Yield: 1.53% — respectable for a financial stock, offering income stability.

💸 Valuation Indicators

Metric Value Insight

P/E Ratio 26.5 Slightly above industry PE of 22.1 — mildly expensive.

P/B Ratio ~3.77 Reasonable relative to book value ₹46.7.

PEG Ratio 1.47 Acceptable — growth justifies valuation, though not deeply undervalued.

🔍 Conclusion: Fairly valued with strong fundamentals. Not a bargain, but not overpriced either.

🏦 Business Model & Competitive Edge

Core Operations: JM Financial operates across investment banking, asset management, lending, and wealth advisory.

Diversification: Exposure to both retail and institutional segments provides stability.

Recent Moves: Stake sale in home loans unit to Bajaj Allianz Life for ₹65.5 Cr boosts liquidity and strategic focus

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Growth Outlook: Strong Q1 results with net profit up 146.2% YoY to ₹457.6 Cr

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. The company is well-positioned to benefit from India’s IPO boom and capital market expansion

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📉 Technicals & Entry Zone

RSI: 47.1 — neutral, no overbought signals.

MACD: 1.05 — mild bullish momentum.

DMA Levels: Current price near 50-DMA (₹173) and well above 200-DMA (₹141) — medium-term bullish trend.

📌 Suggested Entry Zone: ₹165–₹175 — near 50-DMA, offering a balanced entry point.

🕰️ Long-Term Holding Guidance

Hold if Invested: Strong fundamentals, low debt, and diversified business model support long-term value.

Buy on Dips: Especially if price nears ₹160 or RSI dips below 40.

Monitor: Lending book quality, capital market cycles, and stake divestments.

If you’d like a discounted cash flow model or peer comparison with Motilal Oswal or Edelweiss, I can build that next.

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