Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
post
Last Updated on: 24 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

JM Financial Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 22, 2024, 10:04 pm

Market Cap 12,715 Cr.
Current Price 133
High / Low169/69.0
Stock P/E20.6
Book Value 91.1
Dividend Yield1.50 %
ROCE10.1 %
ROE0.78 %
Face Value 1.00
PEG Ratio8.64

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

View Share Price Target for JM Financial Ltd

Competitors of JM Financial Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Nam Securities Ltd 85.7 Cr. 159198/59.3238 21.20.00 %4.16 %3.05 % 10.0
Naperol Investments Ltd 828 Cr. 1,4412,041/801845 3,2040.00 %0.08 %0.05 % 10.0
Inani Securities Ltd 14.1 Cr. 31.042.0/20.59.75 42.20.00 %10.6 %6.92 % 10.0
HCKK Ventures Ltd 43.5 Cr. 117154/77.4241 11.50.00 %8.17 %6.44 % 10.0
HB Portfolio Ltd 108 Cr. 101177/54.314.6 2790.99 %3.34 %2.90 % 10.0
Industry Average7,266.37 Cr2,238.6976.495,594.830.28%15.23%17.14%7.45

All Competitor Stocks of JM Financial Ltd

Quarterly Result

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales8018858259869629528107918599288461,0671,197
Expenses265272248362355323258276279313459473535
Operating Profit536613577624607629552515580615387594663
OPM %67%69%70%63%63%66%68%65%67%66%46%56%55%
Other Income3616771330141819261417
Interest289278271261287283250261270301347366388
Depreciation10101099910101010121213
Profit before tax24033131236031734932225931832254230278
Tax %23%24%25%24%28%25%29%24%25%25%40%24%26%
Net Profit18425123427522826122819823824032177206
EPS in Rs1.461.901.852.131.832.271.871.781.891.990.601.742.04

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales8641,0421,0071,3421,6852,3593,0623,4943,4463,2113,7243,2924,346
Expenses3833994024484595827677439331,0091,2961,1701,896
Operating Profit4826436058951,2251,7772,2952,7512,5132,2022,4292,1222,449
OPM %56%62%60%67%73%75%75%79%73%69%65%64%56%
Other Income9-0-161-0-0356815395182
Interest2963773084205127821,1391,4461,3861,1111,0821,1791,501
Depreciation11121518202326274140384251
Profit before tax1832542805176939721,1651,2831,0941,0671,348953979
Tax %33%30%29%30%32%34%33%35%29%24%26%26%
Net Profit131199225379526649785837778808992709737
EPS in Rs2.432.774.225.085.927.176.816.486.198.106.267.29
Dividend Payout %37%37%36%32%29%25%25%15%3%8%20%43%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)51.91%13.07%68.44%38.79%23.38%20.96%6.62%-7.05%3.86%22.77%-28.53%
Change in YoY Net Profit Growth (%)0.00%-38.84%55.38%-29.66%-15.40%-2.43%-14.33%-13.67%10.91%18.92%-51.30%

JM Financial Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:17%
5 Years:7%
3 Years:14%
TTM:18%
Compounded Profit Growth
10 Years:-11%
5 Years:-35%
3 Years:-52%
TTM:6%
Stock Price CAGR
10 Years:10%
5 Years:9%
3 Years:20%
1 Year:60%
Return on Equity
10 Years:9%
5 Years:7%
3 Years:6%
Last Year:1%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 10:30 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital75767879798484849595959696
Reserves1,9752,1112,4652,8313,2404,4715,0485,5556,9057,5918,0418,3958,615
Borrowings4,1972,9884,7236,6729,44414,98813,99111,75612,40513,49815,93916,22813,949
Other Liabilities6797561,2391,4803,7822,6643,5173,3513,9734,4775,1374,8745,372
Total Liabilities6,9275,9308,50511,06116,54522,20622,64020,74623,37825,66129,21329,59228,031
Fixed Assets101228445444474427424450423414505572574
CWIP0121231113748
Investments5684956407722,1562,3882,9334,0145,8023,6393,5844,7245,810
Other Assets6,2585,2077,4189,84413,91319,38819,28216,28017,15321,60525,11624,29221,638
Total Assets6,9275,9308,50511,06116,54522,20622,64020,74623,37825,66129,21329,59228,031

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +-4021,058-1,717-918-2,546-3,5847733,164969-3,458-2,3073,635
Cash from Investing Activity +167585-281264-326-708-148-901-2,2492,614-592-2,090
Cash from Financing Activity +256-1,5941,7831,3052,4244,540-522-2,2051,2961,2812,160162
Net Cash Flow2148-215651-4482471035816437-7391,708

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow482.00639.00603.00891.00-5.00-8.00-12.00-11.00-9.00-10.00-11.00-13.00

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
Debtor Days637162771821027234584913543
Inventory Days
Days Payable
Cash Conversion Cycle637162771821027234584913543
Working Capital Days1,072678752601588268295235288230411105
ROCE %11%10%14%13%15%13%13%12%10%11%8%10%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters54.81%55.27%55.42%55.41%56.02%56.02%56.49%56.48%56.47%56.44%56.44%56.43%
FIIs21.74%21.41%21.83%21.13%22.12%22.14%21.24%20.72%18.82%17.92%18.19%16.83%
DIIs10.45%9.72%8.78%8.79%8.30%7.35%7.47%7.61%8.06%8.46%8.46%8.63%
Public13.00%13.60%13.97%14.67%13.57%14.49%14.80%15.19%16.66%17.17%16.91%18.11%
No. of Shareholders92,69195,17299,22999,90398,30197,86596,9361,06,9891,19,3011,35,1031,58,4461,63,944

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
ICICI Prudential Value Discovery Fund12,040,5040.398.431,845,0002024-11-23552.6%
Quant Small Cap Fund10,969,1610.9489.671,845,0002024-11-23494.53%
ICICI Prudential Bluechip Fund10,759,4940.2187.961,845,0002024-11-23483.17%
ICICI Prudential Multicap Fund7,743,5310.7263.31,845,0002024-11-23319.7%
ICICI Prudential Infrastructure Fund7,663,3781.8762.651,845,0002024-11-23315.36%
Axis Small Cap Fund7,349,9620.3760.091,845,0002024-11-23298.37%
Nippon India Small Cap Fund6,545,9360.1453.511,845,0002024-11-23254.79%
Aditya Birla Sun Life Banking And Financial Services Fund2,536,5970.7420.741,845,0002024-11-2337.48%
ICICI Prudential Banking and Financial Services2,074,6060.2516.961,845,0002024-11-2312.44%
Quant BFSI Fund1,845,0007.7615.081,845,0002024-11-230%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)4.296.268.116.346.48
Diluted EPS (Rs.)4.296.258.096.326.45
Cash EPS (Rs.)0.847.8610.808.889.73
Book Value[Excl.RevalReserv]/Share (Rs.)115.70118.03111.37101.5696.70
Book Value[Incl.RevalReserv]/Share (Rs.)115.70118.03111.37101.5696.70
Revenue From Operations / Share (Rs.)49.8234.2038.8533.5640.80
PBDIT / Share (Rs.)29.4622.7625.8623.2829.96
PBIT / Share (Rs.)28.9022.3225.4722.8629.47
PBT / Share (Rs.)3.709.9814.1311.2013.00
Net Profit / Share (Rs.)0.287.4210.408.469.24
NP After MI And SOA / Share (Rs.)4.296.268.106.196.48
PBDIT Margin (%)59.1266.5566.5669.3573.43
PBIT Margin (%)58.0165.2765.5468.1072.24
PBT Margin (%)7.4229.1736.3633.3631.86
Net Profit Margin (%)0.5721.7026.7625.2022.65
NP After MI And SOA Margin (%)8.6018.2920.8518.4515.87
Return on Networth / Equity (%)4.827.3410.058.439.66
Return on Capital Employeed (%)24.259.8722.0311.9015.01
Return On Assets (%)1.372.032.992.522.62
Long Term Debt / Equity (X)0.001.230.001.211.46
Total Debt / Equity (X)1.901.951.751.772.08
Asset Turnover Ratio (%)0.160.020.040.020.02
Current Ratio (X)1.543.591.684.454.71
Quick Ratio (X)1.533.581.684.454.71
Dividend Payout Ratio (NP) (%)0.0032.7612.332.857.70
Dividend Payout Ratio (CP) (%)0.0030.6111.752.677.16
Earning Retention Ratio (%)0.0067.2487.6797.1592.30
Cash Earning Retention Ratio (%)0.0069.3988.2597.3392.84
Interest Coverage Ratio (X)1.801.842.282.001.82
Interest Coverage Ratio (Post Tax) (X)1.561.601.921.731.56
Enterprise Value (Cr.)20391.7522305.2620291.8121020.0318335.05
EV / Net Operating Revenue (X)4.286.835.476.575.34
EV / EBITDA (X)7.2410.268.229.487.27
MarketCap / Net Operating Revenue (X)1.501.741.742.521.58
Retention Ratios (%)0.0067.2387.6697.1492.29
Price / BV (X)0.830.690.831.150.95
Price / Net Operating Revenue (X)1.501.741.742.521.58
EarningsYield0.050.100.110.070.10

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of JM Financial Ltd as of November 24, 2024 is: 14.86

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 24, 2024, JM Financial Ltd is Overvalued by 88.83% compared to the current share price 133.00

Intrinsic Value of JM Financial Ltd as of November 24, 2024 is: 15.21

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 24, 2024, JM Financial Ltd is Overvalued by 88.56% compared to the current share price 133.00

Last 5 Year EPS CAGR: 2.38%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has shown consistent growth in sales (68.62 cr) and profit (372.00 cr) over the years.
  1. The stock has a low average ROCE of 11.67%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 371.00, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 79.00, which may not be favorable.
  4. The company has higher borrowings (10,829.08) compared to reserves (5,172.54), which may suggest financial risk.

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 JM Financial Ltd:
    1. Net Profit Margin: 0.57%
      • 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: 24.25% (Industry Average ROCE: 15.23%)
      • 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%: 4.82% (Industry Average ROE: 17.14%)
      • 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): 1.56
      • 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: 1.53
      • 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: 20.6 (Industry average Stock P/E: 76.49)
      • 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: 1.9
      • 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

JM Financial Ltd. is a Public Limited Listed company incorporated on 30/01/1986 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L67120MH1986PLC038784 and registration number is 038784. Currently Company is involved in the business activities of Activities auxiliary to financial service activities. Company’s Total Operating Revenue is Rs. 560.55 Cr. and Equity Capital is Rs. 95.41 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Finance & Investments7th Floor, Cnergy, Mumbai Maharashtra 400025ecommunication@jmfl.com
http://www.jmfl.com
Management
NamePosition Held
Mr. Nimesh KampaniNon Executive Chairman
Mr. Vishal KampaniNon Executive Vice Chairman
Mr. Adi PatelManaging Director
Mr. Pradip KanakiaIndependent Director
Ms. Jagi Mangat PandaIndependent Director
Mr. P S JayakumarIndependent Director
Mr. Navroz UdwadiaIndependent Director
Ms. Roshini BakshiIndependent Director
Mr. Sumit BoseIndependent Director

FAQ

What is the latest intrinsic value of JM Financial Ltd?

The latest intrinsic value of JM Financial Ltd as on 24 November 2024 is ₹14.86, which is 88.83% lower than the current market price of ₹133.00.

What is the Market Cap of JM Financial Ltd?

The Market Cap of JM Financial Ltd is 12,715 Cr..

What is the current Stock Price of JM Financial Ltd as on 24 November 2024?

The current stock price of JM Financial Ltd as on 24 November 2024 is 133.

What is the High / Low of JM Financial Ltd stocks in FY 2024?

In FY 2024, the High / Low of JM Financial Ltd stocks is 169/69.0.

What is the Stock P/E of JM Financial Ltd?

The Stock P/E of JM Financial Ltd is 20.6.

What is the Book Value of JM Financial Ltd?

The Book Value of JM Financial Ltd is 91.1.

What is the Dividend Yield of JM Financial Ltd?

The Dividend Yield of JM Financial Ltd is 1.50 %.

What is the ROCE of JM Financial Ltd?

The ROCE of JM Financial Ltd is 10.1 %.

What is the ROE of JM Financial Ltd?

The ROE of JM Financial Ltd is 0.78 %.

What is the Face Value of JM Financial Ltd?

The Face Value of JM Financial 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 JM Financial 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