JM Financial Ltd Stock Analysis

BSE: 523405 | NSE: JMFINANCIL | Finance - Investment | Mid Cap

BSE Share Price May 20, 16:11
67.40 1.75 (2.67%)

DeciZen - Make an Informed Decision on JM Financial

Overall Rating

1. Quality

2. Valuation

Fair

3. Price Trend

FAQs

1. Is JM Financial Ltd a good quality company?

Past 10 year’s financial track record analysis by Moneyworks4me indicates that JM Financial Ltd is a below average quality company.

2. Is JM Financial Ltd undervalued or overvalued?

The key valuation ratios of JM Financial Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is JM Financial Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of JM Financial Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of JM Financial:

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 (₹ Cr.)24.111.12129.635.147.3299164264346589
YoY Gr. Rt. %--53.9%88.7%41.1%18.6%34.8%531.8%-45.1%61.1%31.1%-
Adj EPS (₹ ) 0.60.60.911.41.32.31.31.51.83.6
YoY Gr. Rt. %-5.3%56.7%6.4%42%-5.6%70.9%-41.9%13.5%21.9%-
BVPS (₹ )21.621.221.120.720.721.529.429.130.236.539.1
YoY 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 (%)2.42.544.25.34.98.14.24.65.30

CAGR

CAGR Colour Code Guide
9 Years 5 Years 3 Years 1 Years
Net Interest Income34.5%58.1%5.1%31.1%
Adj EPS13.9%5.3%-7%21.9%
BVPS6%12%7.4%20.7%
Share Price 18.6% -10.4% -7.7% -15.5%

Key Financial Ratios

RATIOS \ YEARSMar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Asset Quality Ratio To view Asset Quality Ratio Colour Rating Guide click here
Net NPA to Net Advances (%)0000000000-
Capitalization Ratio To view Capitalization Ratio Colour Rating Guide click here
Capital Adequacy Ratio (%) 00092.477.990.10000-
Margins
Net Profit Margin (%)176.4403.9339.2264.3320.1225.864.267.948.250.658.1
Performance Ratios To view Performance Ratios Colour Rating Guide click here
Return on Equity (%)2.62.84.54.96.96.49.24.55.15.89.2

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 9.50%

Total Income has increased 5.05 CAGR in last 3 years

Total income growth is good in last 4 quarters

Net Profit has declined -7.03 CAGR in last 3 years

Latest Financials - JM Financial Ltd.

Standalone Consolidated
TTM EPS (₹) 3.6 8.1
TTM Sales (₹ Cr.) 589 3,293
BVPS (₹.) 39.1 79.6
Reserves (₹ Cr.) 3,635 7,499
P/BV 1.68 0.83
PE 18.28 8.15
From the Market
52 Week Low / High (₹) 60.20 / 117.55
All Time Low / High (₹) 0.04 / 190.95
Market Cap (₹ Cr.) 6,266
Equity (₹ Cr.) 95.4
Face Value (₹) 1
Industry PE 62.5

Management X-Ray of JM Financial :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

Analyst's Notes

News

About JM Financial Ltd

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).
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