Our 8th company in the Series of Best Stocks Below Rs. 100 is JM Financial Ltd.
This company is good for investing purpose or not ?
Let’s start with the Company profile
Company Profile :
JM Financial Limited operates as core investment company offering customized financial solutions to a range of client base.
Now Let’s check the important fundamental figures of this company. This is a small cap company with Market Cap ₹8,563 cr. We can check more fundamental details below in depth:
Company Fundamental Detail :
PE Ratio: 14.51
Sector PE Ratio: 21.39
PE Ratio of this company is low than Sector’s PE. So it’s a Good PE than the peers of this company.
PB Ratio : 0.88
Sector PB Ratio: 2.41
PB Ratio of this company is low than Sector’s PB ratio. So it’s Good PB than the peers of this company.
Dividend Yield : 0.57%
Sector Dividend Yield : 0.58%
Dividend Yield of this company is equal to Sector Dividend.
ROE: 9.7%
ROCE: N/A
ROE (Return on equity) is Low.
According to above data, this company is looking fundamentally average. Now We’ll check the company Financially data:
Company Financial Detail
| Year | Revenue(cr.) | Profit(cr.) |
| 2021 | 14,305.71 | 590.14 |
| 2020 | 14,476.75 | 544.98 |
| 2019 | 13,368.82 | 572.18 |
| 2018 | 10,266.26 | 600.86 |
In 2018, Net income of company is 600.86 cr. And in 2019 & 2020 its slightly decreased to 572.18 & 544.98 Cr. respectively. Now In 2021, It increased to 590.14 cr. So the company is doing good.
We should check now liabilities of company also in the below table
Total Current & Non Current Liabilities
| 2021 | 2020 | 2019 | 2018 |
| 13,698.79 | 12,611.09 | 14,873.95 | 15,733.89 |
Liabilities of a company refers to the debt of that company. We should also aware the debt of company. In 2021 , Company have 13,698.79 Cr. debt.
Let’s check the Free Cash flow of the company
Free Cash flow
| 2021 | 2020 | 2019 | 2018 |
| 962.93 | 3,154.17 | 755.11 | -3,605.79 |
Debt Level: JMFINANCIL’s debt to equity ratio (128.3%) is considered high.
Reducing Debt: JMFINANCIL’s debt to equity ratio has reduced from 186.6% to 128.3% over the past 5 years.
Debt Coverage: JMFINANCIL’s debt is not well covered by operating cash flow (7.8%).
Interest Coverage: Insufficient data to determine if JMFINANCIL’s interest payments on its debt are well covered by EBIT.
Share Holding Pattern
| Promotor Holding | Foreign Institution | Mutual Fund | Other Domestic Institutions | Retail & Others | |
| Jun 2021 | 54.75% | 21.75% | 11.32% | 0.30% | 11.88% |
| Mar 2021 | 54.79% | 23.51% | 9.78% | 0.10% | 11.83% |
| Dec 2020 | 54.81% | 24.00% | 8.95% | 0.11% | 12.13% |
| Sep 2020 | 54.82% | 27.15% | 7.09% | 0.04% | 10.90% |
Above table showing there is no big change in Promotors holding which is 54.75% in June 2021. FIIs invested in June 2021 with 21.75% and retail investor is 21.10%.
Now We’ll check the return of the company, This company started from Rs. 30.89 at 01 Nov 2006. This company given 18.72% returns in last 1 year from 2020 to 23 Sep 2021.
Investment Checklist for JM Financial Ltd .
- The company is currently profitable
- Earnings are forecast to grow by an average of 10% per year for the next 3 years
- Share price has been stable over the past 3 months
- Profit margins improved or JMFINANCIL became profitable
- The company’s earnings are high quality
- No concerning events detected
- Revenue is meaningful (₹21B)
- Market cap is meaningful (₹86B)
- Debt is not well covered by operating cash flow
- Unstable dividend track record
- Large one-off items impacting financial results
According to its historical performance we can predict stock target.
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Entry Buying Zone : Premium members can see only
Target: Premium members can see only
Time Horizon:Premium members can see only
Risk Profile: Premium members can see only
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Entry Buying Zone : 80 to 85
Target: 105 (30% Upside)
Time Horizon: 6-8 Months
Risk Profile: High Risk (Stock is 2.46x as volatile as Nifty)
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Hope you liked Our 8th company in the Series of Best Stocks Below Rs. 100 . We tried to cover many important things about this company, if you think anything left to cover, you can comment us and we’ll try to cover those things also.
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