The Jammu & Kashmir Bank Ltd Stock Analysis

BSE: 532209 | NSE: J&KBANK | Bank - Private | Small Cap

BSE Share Price Jul 01, 18:01
25.30 -0.05 (-0.20%)

DeciZen - Make an Informed Decision on J&K Bank

Overall Rating

1. Quality

2. Valuation

Somewhat Undervalued

3. Price Trend

FAQs

1. Is The Jammu & Kashmir Bank Ltd a good quality company?

Past 10 year’s financial track record analysis by Moneyworks4me indicates that The Jammu & Kashmir Bank Ltd is a below average quality company.

2. Is The Jammu & Kashmir Bank Ltd undervalued or overvalued?

The key valuation ratios of The Jammu & Kashmir Bank Ltd's currently when compared to its past seem to suggest it is in the Somewhat Undervalued zone.

3. Is The Jammu & Kashmir Bank Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of The Jammu & Kashmir Bank 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 J&K Bank:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

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.
The Jammu & Kashmir Bank 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
Net Interest Income (₹ Cr.)1,8382,3162,6842,6512,7102,5122,8713,3843,7073,7713,911
YoY Gr. Rt. %-26%15.9%-1.3%2.2%-7.3%14.3%17.9%9.5%1.7%-
Total Income5,1706,6217,1577,6557,3487,1797,1178,4888,9928,8308,798
YoY Gr. Rt. %-28.1%8.1%7%-4%-2.3%-0.9%19.3%5.9%-1.8%-
Adj EPS (₹ ) 16.621.82.410.58.6-31.33.68.4-166.15.2
YoY Gr. Rt. %-31.3%-88.8%329.9%-18.2%-464.9%NA129.4%-291.3%NA-
BVPS (₹ )84.4100.411.8126132.596.799.5108.175.78284.3
YoY Gr. Rt. %-18.9%-88.2%967.2%5.1%-27%2.9%8.6%-30%8.5%-
To view Net Profit/Total Funds (%) Colour Rating Guide click here
Net Profit/Total Funds (%)1.51.61.60.70.5-20.20.5-1.10.40.4
To view Net NPA to Net Advances (%) Colour Rating Guide click here
Net NPA to Net Advances (%)0.20.10.22.84.35.14.94.93.532.5
To view Capital Adequacy Ratio (%) Colour Rating Guide click here
Capital Adequacy Ratio (%)-----------

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Net Interest Income8.3%6.8%9.5%1.7%
Total Income6.1%3.7%7.5%-1.8%
Adj EPS-10.6%-6.7%18.5%NA
BVPS-0.3%-9.1%-6.2%8.5%
Share Price -12.8% -21.7% -14.9% -38.7%

Key Financial Ratios

RATIOS \ YEARSMar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Interest Earned / Total Income93.5492.6994.5592.2493.1493.1393.0490.4393.9391.8691.1
Margins To view Margins Colour Rating Guide click here
NIM (%)3.13.33.53.73.73.33.43.63.83.53
Performance Ratios To view Performance Ratios Colour Rating Guide click here
Return on Equity (%)21.223.622.38.66.6-28.53.88-207.77.1
Liquidity Ratio To view Liquidity Ratio Colour Rating Guide click here
CASA (%)40.739.239.141.844.151.750.950.753.756.8-

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 6.30%

Total Income has increased 7.46 CAGR in last 3 years

Net Profit has increased 18.52 CAGR in last 3 years

Net NPA to Net Advances has declined versus last 3 years average

Total income growth is good in last 4 quarters

No data to display

Latest Financials - The Jammu & Kashmir Bank Ltd.

Standalone Consolidated
TTM EPS (₹) 5.2 5.2
TTM Sales (₹ Cr.) 8,013 8,013
BVPS (₹.) 84.3 84
Reserves (₹ Cr.) 8,011 7,981
P/BV 0.30 0.30
PE 4.86 4.93
From the Market
52 Week Low / High (₹) 23.80 / 48.20
All Time Low / High (₹) 1.55 / 199.50
Market Cap (₹ Cr.) 2,437
Equity (₹ Cr.) 96.2
Face Value (₹) 1
Industry PE 21.1

Management X-Ray of J&K Bank :

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

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Analyst's Notes

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News

About The Jammu & Kashmir Bank Ltd

The Jammu & Kashmir Bank Ltd. was incorporated in 1938, and is listed on the NSE and the BSE. It functions as a universal bank in the Union Territories of Jammu & Kashmir and Ladakh and as a specialised bank in the rest of the country. It is also designated as RBI’s agent for banking business, and carries out the banking business of the Union Territories of Jammu & Kashmir and Ladakh, besides collecting central taxes for CBDT. J&K Bank follows a two-legged business model whereby it seeks to increase lending in its home territory which results in higher margins despite modest volumes, and at the same time, seeks to capture niche lending opportunities on a pan-India basis to build volumes and improve margins. J&K Bank operates on the principle of 'socially empowering banking' and seeks to deliver innovative financial solutions for household, small and medium enterprises.

Business of the Bank

The Jammu & Kashmir Bank is engaged in banking Business. The Bank provides banking services, including CD's, educational loans, housing loans and car loans. The Bank also provides insurance services through a joint venture with MetLife India Insurance Company.

Products and Services of the bank

  • Personal Banking- Under this, it offers various products and services such saving accounts, loans, deposits, ATM facility, RTGS/NEFT facility, internet banking, demat services, etc.
  • NRI Banking- Besides various personal banking products, it also offers remittance services, consultancy services to its NRI Clients.
  • Priority and SME- It also caters to the priority and SME segments and offers various kinds of products to meet their various business requirements.

Milestones & Achievements

  • 2010: JK Bank inaugurates 144th ATM at ZainakoteJ&K Bank launches Operation Clean Up'JK Bank launches An Poshe Tele Yeli Wan Poshe Over 100 LPG connections distributed at Chandanwari, UriJK Bank ATM network reaches to 292J&K Bank inaugurates Khidmat centre at Barmeen, Udhampur.
  • 2011: J&K Bank inaugurates ATM in CTM premises KathuaJ&K Bank opens branch in Ashmuji KulgamJ&K Bank inaugurates new B/U premises at Lakhanpur, GhagwalJ&K Bank inaugurates RSETI at Poonch.
  • 2012: J&K Bank opens ATM in DPL Budgam: Donates projector, laptop to SKIMS.
  • 2013: J&K Bank bags two HR awardsJ&K Bank gets Best Bank Award.
  • 2017: JK Bank hires Delloitte as their overhaul Consultants.
  • 2019: The bank won the CSO100 Award for the year 2019 at a ceremony held in Pune, Maharashtra for adopting new ways of thinking to secure business assets with sophisticated tools and improved defenses.
  • 2020: Jammu & Kashmir Bank has received approval to raise capital upto Rs 1000 crore by way of Non-Convertible, Redeemable, Unsecured, Basel III Compliant, Tier 2 bonds in the nature of debentures (debentures) on a private placement basis
  • 2021: Jammu and Kashmir (J&K) Bank has received in-principle approval from board to transfer 8.23 per cent stake of J&K Government to Union Territory (UT) of Ladakh.
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