Jammu and Kashmir Bank Limited

Financial Services — Banks - Regional · NSE

₹134.41−₹3.04 (−2.21%)

DalalBaazaar Score

71 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

Driven by negative free cash flow, small-cap size, which brings sharper price swings, falling profits.

In simple words: Reasonable but unspectacular business quality, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

Company site ↗

The 60-second version of Jammu and Kashmir Bank Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Jammu and Kashmir Bank Limited provide various banking products and services. The company operates through Treasury Operations, Corporate/Wholesale Banking, Retail Banking, and Other Banking Business segments.

IndustryBanks - Regional

SectorFinancial Services

Employees11,934

Annual revenue₹6,874 Cr

How does it make money?

Turns over ₹6,874 Cr a year. Of every ₹100 of sales, about ₹34 reaches shareholders as profit. Each of its 11,934 employees supports ₹57.6 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹57.6 lakh

Who are its competitors?

The closest listed comparisons in its industry are HDFC BANK LTD, ICICI BANK LTD., KOTAK MAHINDRA BANK LTD, AXIS BANK LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

Peer median ROE13.8%

What is the outlook?

1 analysts covering the stock expect revenue to grow about 16.3% and earnings to grow about 11.5% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+16.3%

Est. earnings growth+11.5%

Analysts1

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +27% while net margin moved +58% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+27%

Margin effect+58%

DalalBaazaar Score

71/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.49 — historically steadier than the index
✗ Small Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

73/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

80/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

6.4x

3Y Median

6.5x

40 monthly readings · mean 7.3x · range 5.2x–11.7x

Sector Median

17.0x

median of 4 sector peers

🟡Currently trading close to its 3y median of 6.5x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 62% below the peer median of 17.0x.

vs. its own history

Fair

6.5x median over 40 months · -1%

vs. sector peers

Cheap

17.0x median of 4 peers · -62%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

—

PEG

0.25

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 62% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Return on equity stays above 13%✓ 14.6%
For a lender this is the cleanest single read on whether the book is being grown profitably.
2Revenue growth stays above 6% a year✓ 8.2% CAGR
Latest reported year was -4.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Valuation vs its own median of 6.5x✓ 6.4x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

5 / 10 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✗ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 4 neutral · 3 weak

Market Cap

₹14,801 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

6.4x

Cheap

Cheap against the generic band

P/B Ratio

0.87x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹20.91

Profitable

Profitable on a per-share basis

ROE

14.6%

Moderate

Moderate capital efficiency

ROCE

Not meaningful

N/A for lenders

Banks and NBFCs don't report capital employed the way other businesses do

Debt/Equity

0.20x

Low

Conservative leverage

Revenue Growth (YoY)

-4.3%

Shrinking

Sales are contracting

Profit Growth (YoY)

-11.6%

Falling

Profits are shrinking

Dividend Yield

1.60%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹1,595 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

5.3x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

ROA

1.2%

Weak

Assets generate little profit

Operating Margin

38.0%

Good

Healthy core-business profitability

Net Margin

34.2%

Good

Strong bottom-line conversion

Beta (vs Nifty)

0.49

Defensive

Steadier than the market

52W Range Position

35%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

141.1 / 146.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

26.9

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹5,426 Cr	₹5,966 Cr	₹7,030 Cr	₹6,874 Cr	+8.2%
PAT (Net Profit)	₹1,181 Cr	₹1,771 Cr	₹2,082 Cr	₹2,359 Cr	+26.0%
EPS	₹12.25	₹16.84	₹18.91	₹21.42	+20.5%
ROE	11.9%	14.5%	14.7%	14.3%	—
Total Debt	₹2,892 Cr	₹2,885 Cr	₹2,383 Cr	₹3,381 Cr	+5.3%
Free Cash Flow	-₹531 Cr	-₹1,038 Cr	₹2,621 Cr	-₹1,595 Cr	—

🟢 Revenue has grown at 8.2% a year over 3 years.

🟢 PAT (Net Profit) has grown at 26.0% a year over 3 years.

🟢 EPS has grown at 20.5% a year over 3 years.

🟢 ROE has risen from 11.9% to 14.3% over 3 years (+2.4 pts).

🔴 Total Debt has grown at 5.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1.89 L Cr

Total Liabilities

₹1.72 L Cr

Cash & Equivalents

₹20,770 Cr

Operating Cash Flow

-₹1,126 Cr

Capex

-₹469 Cr

Shareholding (proxy)

Institutional Holding

11.2%

Insider Holding

64.3%

Corporate Actions

Dividend Rate

₹2.15

Ex-Dividend Date

19 Aug 2025

Analyst Consensus

Recommendations

1 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹218

+62.2% vs CMP

Target Range

₹218 – ₹218

Peer Comparison

Company	P/E	ROE
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%
KOTAK MAHINDRA BANK LTD	21.9x	11.2%
AXIS BANK LIMITED	14.5x	13.4%

Recent News

3 mixed1 negative2 general

Jammu and Kashmir Bank promoters confirm no share encumbrance in FY26

scanx.trade, 18 Oct

Jammu and Kashmir Bank (NSEI:J&KBANK) Stock Forecast & Analyst Predictions

Simply Wall Street, 09 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

JK Bank Q1FY27 profit falls 12.5% as tax costs rise

scanx.trade, 18 OctResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

J&KBANK Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Jammu Kashmir Bank Crosses Rs 3 Lakh Cr Business Milestone Despite 13% Profit Dip

Kashmir Life, 29 Jul

FIIs raise stakes in 12 stocks for three straight quarters; shares surge up to 130%, 3 turn multibaggers

The Economic Times, 17 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Watch Items

Revenue growth is negative (-4.3%) on the latest reported period — check if this is one-off or a trend.
This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongBusiness Quality · Growth · Profitability · Valuation

MiddlingFinancial Health · Risk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last.

All 3 tripwires holding · see Key things to watch ↑