Wealth Creation Idea: JM Financial Ltd

JM Financial is one of India’s prominent financial services groups. JM Finance is diversified NBFC player with business in Investment Banking and Securities Business, Fund Based Activities, Alternative Asset Management and Asset Management. Currently, it cater over 200 institutional investors that include marquee foreign institutional investors (FIIs), hedge funds, sovereign funds, domestic mutual funds and insurance companies.

Key Facts:

  • Vishal Kampani, Managing Director is M.com, M. S. (Finance) from London Business School with 20+ years of Experience.
  • In 2017 JMF acts as Book Running Lead Manager for some Big IPOs Like SBI Life, Cochin Shipyard, Reliance Nippon, Prataap Snacks, ICICI Lombard General Insurance, Avenue Supermarts, GTPL Hathway and many other IPOs, QIBs
  • In December JM Financial  closes INR 1056 Cr. QIP of Mahindra and Mahindra Financial.
  • JM Financial acts as Transaction Advisor to Reliance Jio for Acquisition of Reliance Communication Assets
  • JM Financial has good consistent profit growth of 31.02% over 5 years.
  • JM Financial Mutual Fund’s average assets under management (AAUM) FY 2016-17 were at INR 13,394 Crore, with Equity AAUM around INR 6,620 Crore and Debt AUM around INR 6,773 Crore.
  • JMF also has an Equity Brokerage Group (EBG) which provides advisory & trading services to HNIs, corporate and retail clients. Through its network 188 advisors spread across 116 cities in India, EBG offers its services to over 43,500 active clients.
  • JMF one of the leading company in Assets  Reconstruction Business and M&A space.
  • Its private equity fund invested in dynamic and fast growing domestic companies seeking growth capital.

Stock Outlook:

  • M-cap:  INR 12538 cr
  • CMP:  157 INR (03th Jan 2018)
  • EPS: 6.82 INR
  • PE: 23
  • Book Value: 55.7 INR
  • Share Capital 79.35 cr of FV 1
  • Promoter Share holding : 65.1  %.
  • DII/FII/FPI Share  holding: 18.41%
  • Prominent Share holder like Azim Premji Trust, Valiant Group

Why JMF?

  • Diversified NBFC player.
  • Experience and Trusted Management.
  • Trading at low PE in NBFC space.
  •  ARC is growing segment and company is acquiring NPAs with strong underlying business.
  • Company is preferred by most of the Clients for its IPOs, QIBs or any such activity.
  • From this level , company will continue to grow consistently  and stock also likely to outperform.
  • JMF is good portfolio stock for 8-10 Year of Investment.

Be Smart. Invest Smartly.

Disclaimer : Please take advice of your financial advisor before any investment.

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