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Last Updated on: 21 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Jammu & Kashmir Bank Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 20, 2024, 8:57 pm

Market Cap 10,556 Cr.
Current Price 95.9
High / Low152/88.1
Stock P/E5.21
Book Value 111
Dividend Yield2.24 %
ROCE5.90 %
ROE16.0 %
Face Value 1.00
PEG Ratio0.05

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Jammu & Kashmir Bank Ltd

Competitors of Jammu & Kashmir Bank Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Fino Payments Bank Ltd 2,845 Cr. 342467/24930.4 77.30.00 %7.07 %14.4 % 10.0
Yes Bank Ltd 61,317 Cr. 19.632.8/19.034.2 14.30.00 %5.83 %3.18 % 2.00
Ujjivan Small Finance Bank Ltd 6,498 Cr. 33.663.0/33.45.58 28.74.47 %11.1 %26.7 % 10.0
South Indian Bank Ltd 5,999 Cr. 22.936.9/22.24.95 33.71.31 %6.19 %13.8 % 1.00
Karnataka Bank Ltd 7,570 Cr. 200287/1925.64 2882.74 %6.24 %13.7 % 10.0
Industry Average159,190.65 Cr403.5114.61197.151.00%7.10%13.93%5.95

All Competitor Stocks of Jammu & Kashmir Bank Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Revenue1,9901,9902,0202,0122,1032,2992,4412,5122,6572,7642,8812,9102,994
Interest1,0211,0171,0261,0371,0691,0951,1831,2621,3741,4301,6001,6041,625
Expenses1,0091,0348588001,0039459847931,062982906705954
Financing Profit-40-6013517631259274457221352375602415
Financing Margin %-2%-3%7%9%1%11%11%18%8%13%13%21%14%
Other Income223196173-56205148244168230193186229198
Depreciation0000000000000
Profit before tax183136308120236407518625452545561830614
Tax %43%18%43%6%30%40%40%24%28%30%25%23%32%
Net Profit100107169119161240307473331384423633418
EPS in Rs1.401.151.811.271.672.493.194.583.213.723.845.753.80
Gross NPA %9.69%8.95%
Net NPA %2.94%3.02%

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Revenue6,1376,7677,0616,8446,6866,6217,6768,4468,1118,0139,35511,213
Interest3,8204,0824,4094,1324,1733,7504,2914,7394,3404,1014,6096,008
Expenses1,2261,2502,3362,4664,4313,1543,4395,2343,8023,7743,5673,655
Financing Profit1,0911,435316245-1,919-283-55-1,527-301371,1781,550
Financing Margin %18%21%4%4%-29%-4%-1%-18%-0%2%13%14%
Other Income485393599509497501817509701753765838
Depreciation5078956485971041261341441580
Profit before tax1,5261,750820689-1,507121659-1,1445377471,7862,388
Tax %31%33%38%40%8%-68%30%3%19%32%33%26%
Net Profit1,0551,181508414-1,633203464-1,1834284951,1811,771
EPS in Rs21.7624.3610.498.54-31.323.648.33-16.596.015.3011.4416.08
Dividend Payout %23%21%20%20%0%0%0%0%0%0%4%13%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)11.94%-56.99%-18.50%-494.44%112.43%128.57%-354.96%136.18%15.65%138.59%49.96%
Change in YoY Net Profit Growth (%)0.00%-68.93%38.48%-475.94%606.88%16.14%-483.53%491.14%-120.52%122.93%-88.63%

Jammu & Kashmir Bank Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:5%
5 Years:8%
3 Years:11%
TTM:15%
Compounded Profit Growth
10 Years:4%
5 Years:31%
3 Years:61%
TTM:36%
Stock Price CAGR
10 Years:-3%
5 Years:24%
3 Years:34%
1 Year:-15%
Return on Equity
10 Years:4%
5 Years:7%
3 Years:13%
Last Year:16%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital48484848525656717193103110
Reserves4,8165,6746,0606,3725,6216,1026,5666,2746,7317,9849,79312,083
Borrowings65,28771,09368,07671,61973,73581,63392,26199,805110,062117,074124,919137,648
Other Liabilities1,5831,7971,7262,2142,6041,8942,5222,6783,4085,42511,0974,664
Total Liabilities71,73478,61375,91080,25482,01289,684101,405108,829120,273130,576145,913154,505
Fixed Assets4445086557061,4791,5981,6462,0361,9711,9082,2242,208
CWIP132734596417293541464750
Investments25,73126,18522,74020,33421,27118,86023,14022,99030,77433,78534,78034,900
Other Assets45,54751,89352,48159,15659,19869,21076,58983,76887,48694,837108,860117,347
Total Assets71,73478,61375,91080,25482,01289,684101,405108,829120,273130,576145,913154,505

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +1,280-683118-2192,4572,363-2,9924,374-14-1,568-407-853
Cash from Investing Activity +-86-169-261-136-861-164-165-115-76-85-124-257
Cash from Financing Activity +-243-338-338-176593668769-339-199941638407
Net Cash Flow951-1,189-480-5312,1892,867-2,3883,920-289-712107-702

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-64.00-70.00-66.00-69.00-69.00-78.00-89.00-94.00-107.00-114.00-121.00-134.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
ROE %24%22%9%7%-27%3%7%-18%7%7%13%16%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters68.18%70.12%70.12%68.03%68.03%68.03%63.41%63.41%63.41%59.40%59.40%59.40%
FIIs0.00%0.70%0.71%0.76%0.82%1.96%2.24%2.19%2.61%5.80%6.99%7.16%
DIIs2.08%0.23%0.21%0.94%2.12%2.78%2.66%2.43%4.92%7.81%7.90%6.74%
Public29.74%28.96%28.96%30.27%29.03%27.23%31.69%31.96%29.06%26.98%25.71%26.70%
No. of Shareholders1,71,7251,84,2541,92,5881,95,9351,89,5351,69,5581,72,0741,72,1711,88,6092,04,1932,15,2942,54,645

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Quant Small Cap Fund13,227,2591.25162.73,400,0002024-11-20289.04%
Kotak Multicap Fund11,409,0151.74140.333,400,0002024-11-20235.56%
Kotak Multi Asset Allocation Fund3,940,3811.0448.473,400,0002024-11-2015.89%
Mahindra Manulife Large & Mid Cap Fund3,400,0002.4741.823,400,0002024-11-200%
Aditya Birla Sun Life PSU Equity Fund2,318,1741.4728.513,400,0002024-11-20-31.82%
Baroda BNP Paribas Multi Cap Fund1,894,0521.123.33,400,0002024-11-20-44.29%
Kotak India EQ Contra Fund - Regular Plan1,738,8000.9321.393,400,0002024-11-20-48.86%
Mahindra Manulife Small Cap Fund1,550,3650.6219.073,400,0002024-11-20-54.4%
Baroda BNP Paribas Small Cap Fund1,530,0001.4718.823,400,0002024-11-20-55%
Baroda BNP Paribas Large and Mid Cap Fund1,300,0001.6515.993,400,0002024-11-20-61.76%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
Face Value1.001.001.001.001.00
Basic EPS (Rs.)16.8412.255.966.01-16.59
Diluted EPS (Rs.)16.8412.255.966.01-16.59
Cash EPS (Rs.)18.0513.156.957.89-14.82
Book Value[Excl.RevalReserv]/Share (Rs.)99.1983.5175.3981.6974.97
Book Value[Incl.RevalReserv]/Share (Rs.)110.7195.9385.5795.3288.93
Operating Revenue / Share (Rs.)101.8290.6885.88113.67118.36
Net Profit / Share (Rs.)16.0711.625.416.00-16.58
Net Profit After MI / Share (Rs.)16.0811.445.306.00-16.58
Net Profit Margin (%)15.7812.816.295.28-14.01
Net Profit After MI And SOA Nargin (%)15.7912.616.175.28-14.01
Operating Profit Margin (%)8.314.63-3.56-3.61-20.03
Return On Assets (%)1.140.800.370.35-1.08
Return On Equity / Networth (%)16.2113.707.037.34-22.11
Net Interest Margin (X)3.363.252.993.133.40
Cost To Income (%)62.2666.2476.5364.1864.86
Interest Income / Total Assets (%)7.256.416.136.747.76
Non-Interest Income / Total Assets (%)0.540.520.600.600.46
Operating Profit / Total Assets (%)0.600.29-0.21-0.24-1.55
Operating Expenses / Total Assets (%)2.432.502.752.392.51
Interest Expenses / Total Assets (%)3.883.153.143.604.35
Enterprise Value (Rs.Cr.)145155.93122196.89118692.07108211.1097742.78
EV Per Net Sales (X)12.9513.0614.8113.3411.57
Price To Book Value (X)1.350.580.420.310.16
Price To Sales (X)1.320.540.370.220.10
Retention Ratios (%)86.6395.63100.00100.00100.00
Earnings Yield (X)0.120.230.160.23-1.34

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Jammu & Kashmir Bank Ltd as of November 21, 2024 is: 94.60

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 21, 2024, Jammu & Kashmir Bank Ltd is Overvalued by 1.36% compared to the current share price 95.90

Intrinsic Value of Jammu & Kashmir Bank Ltd as of November 21, 2024 is: 191.13

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 21, 2024, Jammu & Kashmir Bank Ltd is Undervalued by 99.30% compared to the current share price 95.90

Last 5 Year EPS CAGR: 102.05%

*Investments are subject to market risks

Strength and Weakness

Unable to fetch valid data for stock valuation.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Jammu & Kashmir Bank Ltd:
    1. Net Profit Margin: 15.78%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 0% (Industry Average ROCE: 7.1%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 0% (Industry Average ROE: 13.93%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 0
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 5.21 (Industry average Stock P/E: 14.61)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Jammu & Kashmir Bank Ltd. is a Public Limited Listed company incorporated on 01/10/1938 and has its registered office in the State of Jammu & Kashmir, India. Company’s Corporate Identification Number(CIN) is L65110JK1938SGC000048 and registration number is 000048. Currently Company is involved in the business activities of Monetary intermediation of commercial banks, saving banks. postal savings bank and discount houses. Company’s Total Operating Revenue is Rs. 8013.48 Cr. and Equity Capital is Rs. 93.30 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Finance - Banks - Private SectorCorporate Headquarters, Maulana Azad Road, Srinagar Jammu & Kashmir 190001sharedeptt_gc@jkbmail.com
http://www.jkbank.com
Management
NamePosition Held
Mr. Baldev PrakashManaging Director & CEO
Dr. Pawan KotwalNon Executive Director
Mr. Sudhir GuptaNon Ind.& Exe.Director
Mr. R K ChhibberNon Exe.Non Ind.Director
Mr. Naba Kishore SahooInd. Non-Executive Director
Dr. Rajeev Lochan BishnoiInd. Non-Executive Director
Mr. Anil Kumar GoelInd. Non-Executive Director
Mr. Umesh Chandra PandeyInd. Non-Executive Director
Ms. Shahla AyoubInd. Non-Executive Director
Mr. Anand KumarInd. Non-Executive Director

FAQ

What is the latest intrinsic value of Jammu & Kashmir Bank Ltd?

The latest intrinsic value of Jammu & Kashmir Bank Ltd as on 21 November 2024 is ₹94.60, which is 1.36% lower than the current market price of ₹95.90.

What is the Market Cap of Jammu & Kashmir Bank Ltd?

The Market Cap of Jammu & Kashmir Bank Ltd is 10,556 Cr..

What is the current Stock Price of Jammu & Kashmir Bank Ltd as on 21 November 2024?

The current stock price of Jammu & Kashmir Bank Ltd as on 21 November 2024 is ₹95.9.

What is the High / Low of Jammu & Kashmir Bank Ltd stocks in FY 2024?

In FY 2024, the High / Low of Jammu & Kashmir Bank Ltd stocks is 152/88.1.

What is the Stock P/E of Jammu & Kashmir Bank Ltd?

The Stock P/E of Jammu & Kashmir Bank Ltd is 5.21.

What is the Book Value of Jammu & Kashmir Bank Ltd?

The Book Value of Jammu & Kashmir Bank Ltd is 111.

What is the Dividend Yield of Jammu & Kashmir Bank Ltd?

The Dividend Yield of Jammu & Kashmir Bank Ltd is 2.24 %.

What is the ROCE of Jammu & Kashmir Bank Ltd?

The ROCE of Jammu & Kashmir Bank Ltd is 5.90 %.

What is the ROE of Jammu & Kashmir Bank Ltd?

The ROE of Jammu & Kashmir Bank Ltd is 16.0 %.

What is the Face Value of Jammu & Kashmir Bank Ltd?

The Face Value of Jammu & Kashmir Bank Ltd is 1.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Jammu & Kashmir Bank Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE