Check Before You Invest : JM Financial Ltd

Snapshot

Q.1 Which industry/sub-sector does JM Financial Ltd belong to?

JM Financial Ltd belongs to the BFSI sector, operating specifically within the Finance - Investment segment.

Q.2 Is JM Financial Ltd a good quality company?

JM Financial Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is JM Financial Ltd undervalued or overvalued?

JM Financial Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is JM Financial Ltd a good buy now?

JM Financial Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Total Income growth of JM Financial Ltd?

JM Financial Ltd Operating Income growth is -8.05% for FY-2025, which is below its 5-year CAGR of 4.99%, indicating slower growth.

Q.2 Return on Assets of JM Financial Ltd?

JM Financial Ltd Return on Asset is 2.9%, which is in line with its 5-year historical median of 2.9%, indicating stable earnings on assets.

	Current Level	5-year Historic Median
NPM%	17.64	21.66
PPOP%	47	-1.65
RoA%	2.9	2.9

Q.3 Return on Equity (ROE) of JM Financial Ltd?

JM Financial Ltd Return on Equity is 8.5% for FY-2025, which is below its 5-year historical median of 9%, indicating the business is making worse use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of JM Financial Ltd?

JM Financial Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 47% for FY-2025, which is above its 5-year median(-1.65%), indicating increasing margins.

Q.5 Net Profit Margin of JM Financial Ltd?

JM Financial 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 17.64% for FY-2025, which is below its 5-year median( 21.66%), indicating decreasing margins.

Q.6 Total Asset growth of JM Financial Ltd?

JM Financial Ltd Total Asset growth is -18.04% for FY-2025, which is below its 5-year CAGR of 3.1%, indicating slower growth.

Ownership & governance

Q.1 Promoter shareholding and pledge status of JM Financial Ltd?

Promoters hold 57.07% of the JM Financial Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of JM Financial Ltd vs Industry Peers?

JM Financial Ltd AUM CAGR is 3.1%, compared to the 5-year industry median CAGR of 9.45%, indicating slower growth and losing its market share.

Q.2 Profit metrics (NPM, PPOP, RoA) of JM Financial Ltd vs industry peers

JM Financial Ltd profit metrics are above the industry median level of -0.88%, indicating stronger profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM%	17.64	9.95
PPOP%	47	-13.4
RoA%	2.9	0.8

Q.3 Operating efficiency of JM Financial Ltd vs industry peers?

JM Financial Ltd ROCE (10.1) is above the industry median of (1.9); while the current ROE (9) are above than the 5-year average Industry ROE (1.2). This shows that the business is positioned in the top quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM%	17.64	9.95
PPOP%	47	-13.4
RoA%	2.9	0.8
ROCE%	10.1	1.9
ROE%	8.5	1.2

Valuation & price assessment

Q.1 Stock return of JM Financial Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of 13% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	13%	11.6%	31.6%	37.7%

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	10.68	12.18	33.72
Price to Book	1.26	1.11	0.94
Price to Sales	3.26	2.57	12.44
EV to EBITDA	3.96	5.68	9.97

Q.4 Valuation ratios of JM Financial Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 1.26% is higher than its historical median of 1.11%, 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?

JM Financial Ltd return on invested capital (ROIC) is 6.9% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 13.5%, indicating value erosion.

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