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:
29%
Compounded Profit Growth
10 Years:
-11%
5 Years:
-35%
3 Years:
-52%
TTM:
17%
Stock Price CAGR
10 Years:
14%
5 Years:
15%
3 Years:
16%
1 Year:
62%
Return on Equity
10 Years:
9%
5 Years:
7%
3 Years:
6%
Last Year:
1%
Last Updated: Unknown
Balance Sheet
Last Updated: Unknown
Month
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Equity Capital
75
76
78
79
79
84
84
84
95
95
95
96
Reserves
1,975
2,111
2,465
2,831
3,240
4,471
5,048
5,555
6,905
7,591
8,041
8,395
Borrowings
4,197
2,988
4,723
6,672
9,444
14,988
13,991
11,756
12,405
13,498
15,939
16,228
Other Liabilities
679
756
1,239
1,480
3,782
2,664
3,517
3,351
3,973
4,477
5,137
4,874
Total Liabilities
6,927
5,930
8,505
11,061
16,545
22,206
22,640
20,746
23,378
25,661
29,213
29,592
Fixed Assets
101
228
445
444
474
427
424
450
423
414
505
572
CWIP
0
1
2
1
2
3
1
1
1
3
7
4
Investments
568
495
640
772
2,156
2,388
2,933
4,014
5,802
3,639
3,584
4,724
Other Assets
6,258
5,207
7,418
9,844
13,913
19,388
19,282
16,280
17,153
21,605
25,116
24,292
Total Assets
6,927
5,930
8,505
11,061
16,545
22,206
22,640
20,746
23,378
25,661
29,213
29,592
Reserves and Borrowings Chart
Cash Flow
Month
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Cash from Operating Activity
-402
1,058
-1,717
-918
-2,546
-3,584
773
3,164
969
-3,458
-2,307
3,635
Cash from Investing Activity
167
585
-281
264
-326
-708
-148
-901
-2,249
2,614
-592
-2,090
Cash from Financing Activity
256
-1,594
1,783
1,305
2,424
4,540
-522
-2,205
1,296
1,281
2,160
162
Net Cash Flow
21
48
-215
651
-448
247
103
58
16
437
-739
1,708
Free Cash Flow
Month
Mar 2012
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Free Cash Flow
482.00
639.00
603.00
891.00
-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.
Fair Value of JM Financial Ltd as of October 5, 2024 is: ₹14.47
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 October 5, 2024, JM Financial Ltd is Overvalued by 89.95% compared to the current share price ₹144.00
Intrinsic Value of JM Financial Ltd as of October 5, 2024 is: ₹14.81
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 October 5, 2024, JM Financial Ltd is Overvalued by 89.72% compared to the current share price ₹144.00
Last 5 Year EPS CAGR: 2.38%
*Investments are subject to market risks
Strength and Weakness
Strength
Weakness
The company has shown consistent growth in sales (68.62 cr) and profit (372.00 cr) over the years.
The stock has a low average ROCE of 11.67%, which may not be favorable.
The stock has a high average Working Capital Days of 371.00, which may not be favorable.
The stock has a high average Cash Conversion Cycle of 79.00, which may not be favorable.
The company has higher borrowings (10,569.08) compared to reserves (4,885.67), 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:
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.
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.
ROE%: 4.82% (Industry Average ROE: 17.07%)
ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
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.
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.
Stock P/E: 20.6 (Industry average Stock P/E: 66.5)
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.
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.
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
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