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JMFINANCIL - Fundamental Analysis: Financial Health & Valuation
Last Updated Time : 20 Dec 25, 11:15 pm
Back to Fundamental ListFundamental Rating: 3.7
| Stock Code | JMFINANCIL | Market Cap | 13,647 Cr. | Current Price | 143 ₹ | High / Low | 200 ₹ |
| Stock P/E | 23.4 | Book Value | 48.0 ₹ | Dividend Yield | 1.91 % | ROCE | 12.8 % |
| ROE | 12.6 % | Face Value | 1.00 ₹ | DMA 50 | 153 ₹ | DMA 200 | 148 ₹ |
| Chg in FII Hold | 0.69 % | Chg in DII Hold | -0.92 % | PAT Qtr | 246 Cr. | PAT Prev Qtr | 133 Cr. |
| RSI | 43.9 | MACD | -3.24 | Volume | 43,85,764 | Avg Vol 1Wk | 29,14,789 |
| Low price | 78.0 ₹ | High price | 200 ₹ | PEG Ratio | 1.30 | Debt to equity | 0.01 |
| 52w Index | 53.1 % | Qtr Profit Var | -20.4 % | EPS | 6.11 ₹ | Industry PE | 18.7 |
📊 Financials Overview:
- Revenue & Profitability: Quarterly PAT rose from 133 Cr. to 246 Cr., though YoY profit variation shows -20.4% decline.
- Margins: ROE at 12.6% and ROCE at 12.8% indicate moderate efficiency.
- Debt: Debt-to-equity at 0.01 reflects a very strong balance sheet with negligible leverage.
- Cash Flow: Dividend yield at 1.91% provides decent shareholder returns compared to peers.
💹 Valuation Indicators:
- P/E Ratio: 23.4 vs Industry PE of 18.7 → slightly overvalued.
- P/B Ratio: Current Price / Book Value ≈ 2.98 → fair premium.
- PEG Ratio: 1.30 → valuation is moderately aligned with growth expectations.
- Intrinsic Value: Current price (₹143) is near fair value; undervaluation zone closer to ₹120–₹130.
🏢 Business Model & Competitive Advantage:
- JM Financial operates across investment banking, asset management, and lending services.
- Diversified financial services portfolio provides resilience against cyclical downturns.
- Strong brand recognition and institutional relationships enhance competitive positioning.
📈 Entry Zone & Holding Guidance:
- Entry Zone: Attractive near ₹120–₹130 (aligned with DMA 200 support).
- Long-Term Holding: Suitable for investors seeking exposure to diversified financial services with stable returns.
Positive
- Strong balance sheet with negligible debt (Debt-to-equity 0.01).
- Dividend yield at 1.91% is attractive for income investors.
- FII holdings increased (+0.69%), showing foreign investor confidence.
Limitation
- P/E ratio (23.4) is higher than industry average (18.7).
- ROE and ROCE are moderate compared to top peers.
- Stock trading near mid-range, limiting immediate upside potential.
Company Negative News
- DII holdings decreased (-0.92%), showing reduced domestic institutional confidence.
- YoY profit variation declined (-20.4%).
Company Positive News
- Quarterly PAT improved significantly from 133 Cr. to 246 Cr.
- Strong FII inflows indicate global investor trust in the company.
Industry
- Industry PE at 18.7, lower than JM Financial’s valuation.
- Financial services sector benefits from rising credit demand and capital market activity in India.
Conclusion
⚖️ JM Financial is a fundamentally stable company with negligible debt, decent dividend yield, and diversified business operations. While current valuations are slightly above industry average, long-term investors may consider accumulating near ₹120–₹130 for better risk-reward. The company’s strong balance sheet and diversified portfolio support sustainable growth.
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