JM Financial Limited

Financial Services — Capital Markets · NSE

₹121.00+₹1.12 (+0.93%)

DalalBaazaar Score

81 / 100

🟢 Strong

Verdict

ATTRACTIVE

Risk

Low

Driven by small-cap size, which brings sharper price swings, falling profits.

In simple words: Reasonable but unspectacular business quality, but sales are shrinking. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

JM Financial Limited, together with its subsidiaries, provides various integrated and diversified financial services to corporations, financial institutions, government organizations, high net-worth individuals, and retail customers in India and internationally.

IndustryCapital Markets

SectorFinancial Services

Employees5,250

Annual revenue₹3,498 Cr

How does it make money?

Turns over ₹3,498 Cr a year. Of every ₹100 of sales, about ₹34 reaches shareholders as profit. Each of its 5,250 employees supports ₹66.6 lakh of revenue a year, the signature of a people-led business.

Net margin34.4%

Revenue / employee₹66.6 lakh

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, HDFC LIFE INS CO LTD, SBI LIFE INSURANCE CO LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

BAJAJ FINANCE LIMITEDP/E 30.2x · ROE 17.8%

HDFC LIFE INS CO LTDP/E 58.4x · ROE 11.3%

SBI LIFE INSURANCE CO LTDP/E 63.9x · ROE 13.7%

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.

ROE11.3%

Peer median ROE13.7%

What is the outlook?

1 analysts covering the stock expect revenue to grow about 14.7% and earnings to grow about 14.5% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+14.7%

Est. earnings growth+14.5%

Analysts1

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +69% while net margin moved +19% 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+69%

Margin effect+19%

DalalBaazaar Score

81/ 100

Strong

Weighted across six categories. Every point is explained below.

✓ Beta of 0.41 — historically steadier than the index
✗ Small Cap: thinner liquidity and sharper drawdowns are normal

Quality vs. Valuation

Company Quality

82/ 100

Excellent

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

Valuation

88/ 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

11.1x

3Y Median

16.2x

40 monthly readings · mean 19.0x · range 9.6x–37.1x

Sector Median

58.4x

median of 3 sector peers

🟢Current valuation is approximately 31% below its 3y median of 16.2x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 81% below the peer median of 58.4x.

vs. its own history

Cheap

16.2x median over 40 months · -31%

vs. sector peers

Cheap

58.4x median of 3 peers · -81%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

11.1x

P/B

1.09x

EV/EBITDA

—

PEG

0.42

Dividend Yield

1.45%

What's Good / What's Bad

🟢 What's Going Well3

Return on equity is rising
ROE has improved from 7.3% to 11.3%.
Valuation below its historical average
At 11.1x the stock trades 31% below its own median of 16.2x.
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?

Priced below its own history
The stock trades 31% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 81% 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

1Revenue growth stays above 14% a year✓ 19.1% CAGR
Latest reported year was -10.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2Return on equity stays above 9%✓ 11.3%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Valuation vs its own median of 16.2x✓ 11.1x 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 · 5 neutral · 2 weak

Market Cap

₹11,580 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

11.1x

Cheap

Cheap against the generic band

P/B Ratio

1.09x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹10.87

Profitable

Profitable on a per-share basis

ROE

11.3%

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

1.02x

Moderate

Moderate leverage

Revenue Growth (YoY)

-10.3%

Shrinking

Sales are contracting

Profit Growth (YoY)

-35.7%

Falling

Profits are shrinking

Dividend Yield

1.45%

Modest

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

Free Cash Flow

₹517 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹121

P/E (Forward)

8.1x

Improving

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

Operating Margin

47.2%

Good

Healthy core-business profitability

Net Margin

30.9%

Good

Strong bottom-line conversion

Beta (vs Nifty)

0.41

Defensive

Steadier than the market

52W Range Position

14%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

123.7 / 126.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

38.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2,069 Cr	₹2,693 Cr	₹2,722 Cr	₹3,498 Cr	+19.1%
PAT (Net Profit)	₹597 Cr	₹410 Cr	₹821 Cr	₹1,202 Cr	+26.3%
EPS	₹6.25	₹4.29	₹8.58	₹12.55	+26.2%
ROE	7.3%	4.8%	8.4%	11.3%	—
Total Debt	₹15,939 Cr	₹16,228 Cr	₹11,507 Cr	₹11,669 Cr	-9.9%
Free Cash Flow	-₹2,432 Cr	₹3,581 Cr	₹5,535 Cr	₹517 Cr	—

🟢 Revenue has grown at 19.1% a year over 3 years.

🟢 PAT (Net Profit) has grown at 26.3% a year over 3 years.

🟢 EPS has grown at 26.2% a year over 3 years.

🟢 ROE has risen from 7.3% to 11.3% over 3 years (+3.9 pts).

🟢 Total Debt has shrunk at 9.9% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹2,432 Cr to ₹517 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹26,537 Cr

Total Liabilities

₹15,179 Cr

Total Debt

₹11,669 Cr

Cash & Equivalents

₹472 Cr

Operating Cash Flow

₹581 Cr

Capex

-₹64 Cr

Shareholding (proxy)

Institutional Holding

50.3%

Insider Holding

24.6%

Corporate Actions

Dividend Rate

₹1.75

Ex-Dividend Date

12 Jun 2026

Analyst Consensus

Recommendations

1 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹165

+36.4% vs CMP

Target Range

₹165 – ₹165

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
HDFC LIFE INS CO LTD	58.4x	11.3%
SBI LIFE INSURANCE CO LTD	63.9x	13.7%

Recent News

2 positive2 mixed2 general

Newly listed stock has 30% upside potential! JM Financial issues buy call; Check target price and key triggers

Livemint, 15 OctAnalyst view

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

Tata Tech shares rally 8% after Q2 results, but Goldman Sachs and JM Financial stay bearish. Here's why

The Economic Times, 15 OctPrice 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.

Shiprocket Shares: JM Financial Buy Call and Upside Check

Univest, 15 Oct

Urban Company jumps 3% on fundraising plans; JM Fin calls the step prudent

Business Standard, 14 Oct

BHEL shares fall 5% despite Q2 earnings beat; JM Financial sees ₹80,000 crore order inflows by FY29

ET EnergyWorld, 15 OctOrder win

🟢Potentially positiveOrder wins add to future revenue, though the effect depends on the contract's size against annual sales and on when it is executed.

BHEL shares fall over 4% despite stellar Q2; CLSA flags rich valuations, JM Financial raises target

Moneycontrol.com, 15 OctAnalyst view

🟢Potentially positiveAn analyst opinion changing, which moves the price without changing the business.

Watch Items

Revenue growth is negative (-10.3%) 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.

DalalBaazaar Thesis

🟢Business QualityStrong18/20

🟢Financial HealthStrong17/20

🟢GrowthStrong14.9/20

🟢ProfitabilityStrong11.4/15

🟢ValuationAttractive13.2/15

🟡RiskModerate6/10

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.

This thesis breaks if

✓Revenue growth stays above 14% a year19.1% CAGR
✓Return on equity stays above 9%11.3%
✓Valuation vs its own median of 16.2x11.1x today