JMJ Fintech Limited

Financial Services — Credit Services · BSE

₹9.45+₹0.07 (+0.75%)

DalalBaazaar Score

69 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:07 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 JMJ Fintech Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

JMJ Fintech Limited, a non-banking financial company, provides various financial services to corporate clients and high net worth individuals in India.

IndustryCredit Services

SectorFinancial Services

Annual revenue₹22 Cr

How does it make money?

Turns over ₹22 Cr a year. Of every ₹100 of sales, about ₹35 reaches shareholders as profit, with ₹49 left at the operating level before interest, tax and depreciation.

EBITDA margin49.2%

Net margin34.8%

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, STATE BANK OF INDIA, HDFC BANK LTD, ICICI BANK 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%

STATE BANK OF INDIAP/E 10.3x · ROE 15.2%

HDFC BANK LTDP/E 15.9x · ROE 13.8%

ICICI BANK LTD.P/E 18.1x · ROE 16.5%

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.

ROCE11.6%

ROE13.6%

Peer median ROE16.5%

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 +477% while net margin moved +59% 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+477%

Margin effect+59%

DalalBaazaar Score

69/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

70/ 100

Good

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

3.3x

3Y Median

30.2x

40 monthly readings · mean 31.4x · range 2.5x–80.2x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 89% below its 3y median of 30.2x. 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 80% below the peer median of 17.0x.

vs. its own history

Cheap

30.2x median over 40 months · -89%

vs. sector peers

Cheap

17.0x median of 4 peers · -80%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

3.3x

P/B

—

EV/EBITDA

5.1x

PEG

0.03

Dividend Yield

1.59%

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 7.5% to 49.2% over 3 years.
Return on equity is rising
ROE has improved from 6.6% to 13.6%.
Return on capital is rising
ROCE has improved from 6.3% to 11.6%.
Valuation below its historical average
At 3.3x the stock trades 89% below its own median of 30.2x.
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

1 item require attention · 1 watch

🟡Shareholders have been dilutedOwnership
Shares outstanding are up 60% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 7.5% to 49.2%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 89% 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 80% 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?

Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro 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 59% a year✓ 79.3% CAGR
Latest reported year was 27.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 47%✓ 49.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 12%✓ 13.6%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Valuation vs its own median of 30.2x✓ 3.3x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

6 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 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
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 5 neutral · 1 weak

Market Cap

₹35 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

3.3x

Cheap

Cheap against the generic band

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹2.83

Profitable

Profitable on a per-share basis

ROE

13.6%

Moderate

Moderate capital efficiency

ROCE

11.6%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.58x

Low

Conservative leverage

Revenue Growth (YoY)

27.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

47.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.59%

Modest

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

Free Cash Flow

-₹22 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹9.45

Operating Margin

0.0%

Weak

Thin margins leave little room for error

Net Margin

0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

82.57

Comfortable

Healthy short-term liquidity

52W Range Position

11%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

9.5 / 9.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

44.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹4 Cr	₹7 Cr	₹17 Cr	₹22 Cr	+79.3%
EBITDA	₹0 Cr	₹4 Cr	₹10 Cr	₹11 Cr	+235.9%
EBITDA Margin	7.5%	54.4%	57.7%	49.2%	—
PAT (Net Profit)	₹1 Cr	₹2 Cr	₹5 Cr	₹8 Cr	+109.1%
EPS	₹0.32	₹0.89	₹3.62	₹1.83	+78.6%
ROE	6.6%	13.7%	21.9%	13.6%	—
ROCE	6.3%	14.3%	21.1%	11.6%	—
Total Debt	₹3 Cr	₹10 Cr	₹21 Cr	₹32 Cr	+121.0%
Free Cash Flow	-₹3 Cr	-₹9 Cr	-₹8 Cr	-₹22 Cr	—

🟢 Revenue has grown at 79.3% a year over 3 years.

🟢 EBITDA has grown at 235.9% a year over 3 years.

🟢 EBITDA Margin has risen from 7.5% to 49.2% over 3 years (+41.7 pts).

🟢 PAT (Net Profit) has grown at 109.1% a year over 3 years.

🟢 EPS has grown at 78.6% a year over 3 years.

🟢 ROE has risen from 6.6% to 13.6% over 3 years (+7.0 pts).

🟢 ROCE has risen from 6.3% to 11.6% over 3 years (+5.3 pts).

🔴 Total Debt has grown at 121.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹90 Cr

Total Liabilities

₹34 Cr

Total Debt

₹32 Cr

Cash & Equivalents

₹12 Cr

Operating Cash Flow

-₹18 Cr

Capex

-₹4 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

40.2%

Corporate Actions

Dividend Rate

₹0.15

Ex-Dividend Date

10 Sept 2026

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
STATE BANK OF INDIA	10.3x	15.2%
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%

Recent News

1 positive5 general

JMJ Fintech board to consider ₹7 crore NCD issue and director changes

scanx.trade, 15 Oct

Compare with BAMPSL SECURITIES

Equitymaster, 28 Sept

JMJ Fintech Ltd Partly Paidup Share Price

Business Today, 18 Dec

JMJ Fintech posts 71% net profit surge in Q1FY26 on revenue growth

scanx.trade, 05 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

JMJFIN Stock Price and Chart — BSE:JMJFIN

TradingView, 07 Oct

JMJ Fintech Rights Issue 2025 Date, Price, Allotment, Ratio

IPO Watch, 09 Jul

Watch Items

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.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

🟡Business QualityAdequate12.2/20

🟢Financial HealthStrong17/20

🟢GrowthStrong14.9/20

🟡ProfitabilityModerate8.5/15

🟢ValuationAttractive13.4/15

🔴RiskHigh2.5/10

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 59% a year79.3% CAGR
✓EBITDA margin holds above 47%49.2%
✓Return on equity stays above 12%13.6%
✓Valuation vs its own median of 30.2x3.3x today