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JM Financial Ltd Stock Analysis

Mid Cap
Evaluated by 1564 users | BSE: 523405 | NSE: JMFINANCIL |
Finance - Investment

JM Financial incorporated on January 30, 1986, is a financial services company. The company was incorporated under the name JM Share & Stock Brokers (JMSSB). The name of the company was changed to present one on October 29, 2004. It has pioneered...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
JM Financial Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good
 Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Operating Income (Rs. Cr.)24.111.12129.635.147.3299164264346475
Y-o-Y Gr. Rt.--53.9%88.7%41.1%18.6%34.8%531.8%-45.1%61.1%31.1%-
Adjusted EPS (Rs.)
Adjusted Earning per Share is the company’s net profit per share after adjusting for extra-ordinary/exceptional items
0.570.60.9411.421.342.291.331.511.842.52
Y-o-Y Gr. Rt.-5.3%56.7%6.4%42%-5.6%70.9%-41.9%13.5%21.9%-
Book Value per Share (Rs.)
The total value that a company will fetch upon liquidation (if it is closed down), after settling all obligations is called its Book Value. Book value of a company includes only tangible assets. Book value allocated to each outstanding share is called Book Value per share
21.5521.221.1420.720.7221.529.4229.1430.2136.4737.22
Y-o-Y Gr. Rt.--1.6%-0.3%-2.1%0.1%3.8%36.8%-1%3.7%20.7%-
To view Net Profit/Total Funds (%) Colour Rating Guide click here
Net Profit/Total Funds (%): Colour Rating Guide
  • >12 : Very Good
  • 8-12 : Somewhat Good
  • <8: Not Good
Net Profit/Total Funds (%)2.372.513.994.185.324.938.14.174.635.28-
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
JM Financial Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Operating Income34.5%58.1%5.1%31.1%
Adjusted EPS
Adjusted Earnings per Share is the Company’s net profit per share after adjusting for extra-ordinary/exceptional items.
13.9%5.3%-7%21.9%
Book Value per Share
6%12%7.4%20.7%
Share Price 21.6% 6.1% -4.3% 12.8%
Key Financial Ratios
RATIOS \ YEARSMar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Margins
Net Profit Margin (%) 176.43403.87339.23264.25320.05225.7564.1767.8848.2150.650.6
Performance Ratios
To view Performance Ratios Colour Rating Guide click here
Performance Ratios: Colour Rating Guide
  • >15 : Very Good
  • 12-15 : Somewhat Good
  • <12 : Not Good
Return on Equity (%) 2.632.794.454.856.896.389.194.535.15.836.77
Loading price chart...
Entity Percentage Holding
Promoters 54.75%
Institutions 33.55%
Non-Institutions 11.71%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)
Past 10 year’s financial track record indicates that that JM Financial Ltd is a below average quality company.

JM Financial Ltd's earnings have grown by 5.3%, whereas share price has appreciated 6.1% CAGR over the past five years, indicating the company’s share price is likely overvalued. However, for specific investment actions please consult your investment advisor.

JM Financial Ltd share price has appreciated 17% annually (CAGR) over the past ten years.

Past 10 years financial track record analysis by Moneyworks4me indicates that JM Financial Ltd is a below average long term investment. However, you need to ensure you buy at a right price to earn good returns.

JM Financial incorporated on January 30, 1986, is a financial services company. The company was incorporated under the name JM Share & Stock Brokers (JMSSB). The name of the company was changed to present one on October 29, 2004. It has pioneered several strategies and transactions for a wide client base spread across geographies and thus developed rich experience and expertise. Every idea is unique to the need of the client and supported by superior

JM Financial incorporated on January 30, 1986, is a financial services company. The company was incorporated under the name JM Share & Stock Brokers (JMSSB). The name of the company was changed to present one on October 29, 2004. It has pioneered several strategies and transactions for a wide client base spread across geographies and thus developed rich experience and expertise. Every idea is unique to the need of the client and supported by superior execution to deliver maximum benefits. In the course of company’s journey, it has partnered with several top Indian and International corporate houses and gained their trust and confidence. Its well established processes ensure total confidentiality for all its clients, thereby giving them absolute confidence on conflict management and maintenance of confidentiality.

Business area of the company

JM Financial is one of India’s prominent financial services groups, specialising in providing a spectrum of businesses to corporations, financial institutions, high net-worth individuals and retail investors. It is known for its diverse businesses which comprises of (a) Investment Banking, Wealth Management and Securities (IWS) which includes fee and fund based activities for its clients; (b) Mortgage Lending which includes both wholesale mortgage lending and retail mortgage lending (home loans, education institutions lending and LAP); (c) Distressed credit which includes the Asset Reconstruction business and (d) Asset Management which includes the mutual fund business.

Awards & Recognition

  • 2008: Ranked among Top 50 Companies by Great Places To Work Institute.
  • 2009: JM Financial Services has been recognized by Euromoney, amongst the Top 10 Best Private Banking Services.
  • 2010: Best Retail Broking House - Fastest Growing Equity Broking House (Large Firms).
  • 2011: JM Financial wins ’Team of the Year’ in the Indian Investment Banks category.
  • 2012: JM Financial Services honoured as the Best Performing National Financial Advisor – Institutional.
  • 2013: JM Financial Services has been recognized by BSE, amongst the Top 10 performers in the Equity Segment (Retail Trading).
  • 2014: JM Financial Services Limited - Ranked amongst ’India's 100 Best Companies To Work For 2015’ - Overall.
  • 2014: JM Financial Asset Management–Ranked 5th best in the Financial Services Industry category in ’India’s Best Companies to Work For 2015’.
  • 2015: JM Financial Institutional Securities awarded ‘Best Corporate and Institutional Bank –Domestic’ and ‘Best Equity House’.
  • 2015: JM Financial Institutional Securities Limited - awarded the M&A Deal Maker of the Year.
  • 2015: JM Financial Institutional Securities Limited - awarded Highest Independent Honour in India.
  • 2016: JM Financial Services has been recognized by National Stock Exchange, amongst the Top 10 performers in the Cash Segment for the year 2015-16.
  • 2016: JM Financial Institutional Securities has emerged as QIP Dealmaker of the Year in the Business World-PWC I-banking Survey 2016.
  • 2016: JM Financial Services has been recognized by BSE, amongst the Top Performers in Sovereign Gold Bonds.
  • 2017: JM Financial Services - Recognized as ‘India's Best Companies To Work For 2017 - Investments Industry’.
  • 2017: JM Financial Services has been awarded the Market Achievers Award in the Highest IPO Bidding - Non-Institutional Category.
  • 2017: JM Financial Services has been recognized by BSE, amongst the Top Performers in the Equity Broking Segment (Retail Trading).
  • 2018: JM Financial Limited - Ranked 43rd in India’s Great Mid-Size Workplaces.
  • 2018: JM Financial Services has been recognized by BSE Ltd., amongst the Top Performers in the Equity Broking Segment (Retail Trading).
  • 2018: JM Financial awarded for the Best M&A deal (Tata Chemicals US$ 400 million sale of the urea business to Yara International).
  • 2018: JM Financial awarded ‘Best M&A Adviser’.
  • 2019: JM Financial awarded the Best Investment Bank.
  • 2019: JM Financial Services Limited has been Recognized among India’s 20 Best Workplaces in BFSI - 2019 by Great Place to Work.
  • 2019: JM Financial Services has been recognized by BSE, amongst the Top Performers in Primary Market Segment (Debt Public Issue Bids - Members).
  • 2019: JM Financial awarded for the ‘Best IPO’ (Embassy Office Parks REIT US$ 688 million IPO).
  • 2020: JM Financial Asset Management, JM Financial (Institutional Businesses), JM Financial Products (Dwello), JM Financial Home Loans and JM Financial Services accredited as a ‘Great Place to Work-Certified’ by the Great Place to Work Institute.
  • 2020: JM Financial awarded for the CSR Healthcare Project, implemented by JM Financial Foundation in the Dumri Block-Giridih district, Jharkhand.
  • 2020: JM Financial Services has been recognized by BSE, amongst the Top Performers in Primary Market Segment (Equity – IPO/FPO Bids - Members).

Key events and milestones

  • 1973: JM Financial & Investment Consultancy Services (JMFICS), established in Mumbai.
  • 1979-1980: JMFICS filed first offer document for listing securities of an Indian client with FSA, London.
  • 1979-1980: JMFICS became the first to introduce fully convertible debentures in Indian Capital Markets.
  • 1986: JM Financial Share & Stock Brokers, now known as JM Financial (holding company), was incorporated to engage in the business of Stock Broking and Securities.
  • 1986: Regional office set up in Delhi.
  • 1989-1994: JMFICS introduced equity warrants in the Indian Capital Markets.
  • 1989-1994: JM Financial Limited listed on the Bombay, Ahmedabad and Delhi Stock Exchanges.
  • 1989-1994: JMFICS introduced Deep Discount Bond in Indian Capital Markets.
  • 1989-1994: JMFICS managed four transactions of Securities Offerings in excess of Rs. 100 crores each, a size unmatched till then in Indian markets.
  • 1989-1994: JM Financial Asset Management, the first private sector Mutual Fund, commenced operations.
  • 1989-1994: Tied up with CSFB, S. G. Warburg & Co. Morgan Grenfell and DZ, British Investment Banks on informal basis.
  • 1999: Formed a joint venture with Morgan Stanley in the areas of Investment Banking and Securities business.
  • 2002-2006: Managed India’s first IPO through Book Building.
  • 2002-2006: Recorded three firsts in India - first Indian dual tranche FCCB issue, first billion dollar IPO, first conditional IPO.
  • 2002-2006: Launched Private Equity Fund.
  • 2007: Separated from joint venture with Morgan Stanley.
  • 2007: Continued to lead the Indian Investment Banking / Financial Services industry as a 100% Indian Company.
  • 2007: Acquired ASK Securities (renamed as JM Financial Institutional Securities), a institutional securities firm.
  • 2007: Launched Real Estate Fund.
  • 2008-2012: Initiated expansion of business in International Jurisdictions.
  • 2008-2012: Commenced Asset Reconstruction Business.
  • 2008-2012: Expanded operations in Fixed Income Business.
  • 2008-2012: Managed India’s first IDR issue.
  • 2012-2017: Announced partnership in the Real Estate NBFC with an fund, managed by Mr. Vikram Pandit and associates.
  • 2012-2017: Established step down subsidiary in the USA to cater to and service overseas clients/investors.
  • 2012-2017: Received license for Housing Finance from National Housing Bank (NHB).
  • 2012-2017: Commenced SME Business.
  • 2020: Raised Rs 770 crore by issuing shares to a set of investors through qualified institutional placement (QIP).
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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