JMFINANCIL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.7
| Stock Code | JMFINANCIL | Market Cap | 11,636 Cr. | Current Price | 122 ₹ | High / Low | 200 ₹ |
| Stock P/E | 20.0 | Book Value | 48.0 ₹ | Dividend Yield | 2.22 % | ROCE | 12.8 % |
| ROE | 12.6 % | Face Value | 1.00 ₹ | DMA 50 | 141 ₹ | DMA 200 | 146 ₹ |
| Chg in FII Hold | -0.67 % | Chg in DII Hold | 0.15 % | PAT Qtr | 246 Cr. | PAT Prev Qtr | 133 Cr. |
| RSI | 30.1 | MACD | -5.09 | Volume | 16,63,932 | Avg Vol 1Wk | 25,19,103 |
| Low price | 78.0 ₹ | High price | 200 ₹ | PEG Ratio | 1.11 | Debt to equity | 0.01 |
| 52w Index | 35.8 % | Qtr Profit Var | -20.4 % | EPS | 6.11 ₹ | Industry PE | 18.2 |
📊 Financials: JMFINANCIL shows moderate fundamentals with ROCE at 12.8% and ROE at 12.6%, reflecting average capital efficiency. Debt-to-equity ratio is very low at 0.01, indicating a nearly debt-free balance sheet. Quarterly PAT rose sharply from 133 Cr. to 246 Cr., though overall profit variation is negative at -20.4%, suggesting volatility. EPS of 6.11 ₹ is modest relative to market cap, while cash flows remain stable due to low leverage.
💹 Valuation: Current P/E of 20.0 is slightly above the industry average of 18.2, suggesting fair valuation with a mild premium. P/B ratio is ~2.54 (Current Price / Book Value), which is reasonable compared to peers. PEG ratio of 1.11 indicates balanced growth relative to valuation. Intrinsic value appears close to CMP, offering limited margin of safety but not excessive overvaluation.
🏢 Business Model & Competitive Advantage: JMFINANCIL operates in the financial services sector, offering diversified investment banking, asset management, and lending solutions. Its competitive strengths lie in a diversified portfolio, strong brand presence, and low debt structure. However, modest return ratios and earnings volatility limit its competitive edge compared to larger peers.
🎯 Entry Zone Recommendation: Current price of 122 ₹ is below DMA 50 (141 ₹) and DMA 200 (146 ₹), reflecting weakness. A more attractive entry zone would be around 105–115 ₹ (closer to technical support and below intrinsic value), offering better risk-reward. Long-term investors may accumulate gradually, given stable fundamentals and low debt.
Positive
- Low debt-to-equity ratio of 0.01 ensures financial stability.
- Dividend yield of 2.22% adds shareholder value.
- Quarterly PAT growth from 133 Cr. to 246 Cr. shows operational strength.
- Reasonable P/B ratio (~2.54) compared to peers.
Limitation
- ROCE (12.8%) and ROE (12.6%) are modest compared to industry leaders.
- EPS of 6.11 ₹ is relatively low.
- Profit variation of -20.4% indicates earnings volatility.
- Weak technical indicators (RSI 30.1, MACD -5.09) show bearish sentiment.
Company Negative News
- Volatile quarterly profit performance raises sustainability concerns.
- FII holdings decreased by 0.67%, reflecting reduced foreign investor confidence.
Company Positive News
- Strong quarterly PAT growth highlights operational resilience.
- DII holdings increased by 0.15%, showing domestic institutional support.
- Debt-free structure provides financial flexibility.
Industry
- Financial services industry P/E at 18.2 reflects moderate valuations.
- Sector growth driven by rising demand for investment banking and lending solutions.
- Industry supported by economic expansion and capital market activity.
Conclusion
⚖️ JMFINANCIL is moderately strong with low debt, fair valuations, and diversified operations. While earnings volatility and modest return ratios limit its appeal, the company remains stable with institutional support. Investors should consider accumulating near 105–115 ₹ for better margin of safety. Long-term holding may yield moderate returns, supported by financial sector growth and the company’s diversified business model.
Would you like me to also integrate trend-based technical levels (support/resistance zones) so you can align entry timing with this fundamental view?