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 (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
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
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
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|
|Other Domestic Institutions||Retail & Others|
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.
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
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)
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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