Check Before You Invest : JJ Finance Corporation Ltd

Snapshot

Q.1 Which industry/sub-sector does JJ Finance Corporation Ltd belong to?

JJ Finance Corporation Ltd belongs to the BFSI sector, operating specifically within the Finance - NBFC segment.

Q.2 Is JJ Finance Corporation Ltd a good quality company?

JJ Finance Corporation Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is JJ Finance Corporation Ltd undervalued or overvalued?

JJ Finance Corporation Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is JJ Finance Corporation Ltd a good buy now?

JJ Finance Corporation Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Total Income growth of JJ Finance Corporation Ltd?

JJ Finance Corporation Ltd Operating Income growth is 2.63% for FY-2025, which is below its 5-year CAGR of 5.74%, indicating slower growth.

Q.2 Return on Assets of JJ Finance Corporation Ltd?

JJ Finance Corporation Ltd Return on Asset is 2.6%, which is in line with its 5-year historical median of 2.6%, indicating stable earnings on assets.

	Current Level	5-year Historic Median
NPM%	33.4	48.01
PPOP%	-8.16	-8.16
RoA%	2.6	2.6

Q.3 Return on Equity (ROE) of JJ Finance Corporation Ltd?

JJ Finance Corporation Ltd Return on Equity is 2.7% for FY-2025, which is in line with its 5-year historical median of 2.7%, indicating the business is making similar use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of JJ Finance Corporation Ltd?

JJ Finance Corporation Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is -8.16% for FY-2025, which is in line with its 5-year median(-8.16%), indicating stable margins.

Q.5 Net Profit Margin of JJ Finance Corporation Ltd?

JJ Finance Corporation Ltd Net Profit Margin, which is the difference between the rate of interest earned on assets and the rate of interest paid on liabilities, is 33.4% for FY-2025, which is below its 5-year median( 48.01%), indicating decreasing margins.

Q.6 Total Asset growth of JJ Finance Corporation Ltd?

JJ Finance Corporation Ltd Total Asset growth is 4.97% for FY-2025, which is above its 5-year CAGR of 1.04%, indicating faster growth.

Ownership & governance

Q.1 Promoter shareholding and pledge status of JJ Finance Corporation Ltd?

Promoters hold 64.78% of the JJ Finance Corporation Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of JJ Finance Corporation Ltd vs Industry Peers?

JJ Finance Corporation Ltd AUM CAGR is 1.04%, compared to the 5-year industry median CAGR of 9.9%, indicating slower growth and losing its market share.

Q.2 Profit metrics (NPM, PPOP, RoA) of JJ Finance Corporation Ltd vs industry peers

JJ Finance Corporation Ltd profit metrics are in line with the industry median level of 7.31%, indicating similar profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM%	33.4	15.95
PPOP%	-8.16	4.54
RoA%	2.6	1.45

Q.3 Operating efficiency of JJ Finance Corporation Ltd vs industry peers?

JJ Finance Corporation Ltd ROCE (4.6) is above the industry median of (4.4); while the current ROE (2.7) are in line with than the 5-year average Industry ROE (2.7). This shows that the business is positioned in the top quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM%	33.4	15.95
PPOP%	-8.16	4.54
RoA%	2.6	1.45
ROCE%	4.6	4.4
ROE%	2.7	2.7

Valuation & price assessment

Q.1 Stock return of JJ Finance Corporation Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of 10.9% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	10.9%	49.2%	27.9%	0.5%

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	-	37.09	28.96
Price to Book	1.18	0.91	1.11
Price to Sales	32.14	22.08	9.10
EV to EBITDA	-47	18.68	11.77

Q.4 Valuation ratios of JJ Finance Corporation Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 1.18% is higher than its historical median of 0.91%, indicating that at the current price the stock is overvalued. However, you need a deeper analysis to make a better judgement.

Strategic outlook

Q.1 Does its ROIC exceed its WACC?

JJ Finance Corporation Ltd return on invested capital (ROIC) is 2.66% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

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