JM Financial Ltd.
ISIN: INE780C01023 • Market Cap: ₹12,101 Cr
The 5-Pillar Quality Audit for JM Financial Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (56.5%), Return on Capital Employed (15.5%), and equity compounding (11.3%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 1.09 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (-4.2%) and 3Y PAT CAGR (38.5%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 11.63 vs PEG of 0.74 and Dividend Yield of 2.6%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 57.0%, backed by 22.4% institutional ownership.
Key Fundamental Strengths
High-Velocity Profit Compounding (3Y PAT CAGR: 38.5%)
Net earnings have compounded at 38.5% annualized, demonstrating operating leverage.
Attractive Valuation Margin (P/E: 11.63)
Trading at a P/E multiple of 11.63, the stock offers a favourable risk-reward entry for quality compounding.
Areas to Watch & Potential Risks
Elevated Financial Gearing (D/E: 1.09)
Debt-to-Equity exceeds 0.9x, meaning substantial operating earnings are absorbed by mandatory interest coverage.
Topline Stagnation (3Y Sales CAGR: -4.2%)
Revenue growth has slowed below inflation rates, indicating cyclical demand slowdown or saturated core markets.
Quantitative Strategy Eligibility
Checking JMFINANCIL against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 70/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Provides balanced valuation margin with strong profitability scores.
Financial Services Sector Peer Comparison
Compare JMFINANCIL directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| JM Financial Ltd. (JMFINANCIL)Current | 70/100 | ₹12,101 Cr | 11.63 | 15.5% | 1.09 | — |
| HDFC Bank Ltd. (HDFCBANK) | 74/100 | ₹11.10 Lakh Cr | 14.05 | 12.8% | 1.01 | View |
| ICICI Bank Ltd. (ICICIBANK) | 76/100 | ₹10.06 Lakh Cr | 17.94 | 16.5% | 0.62 | View |
| State Bank of India (SBIN) | 71/100 | ₹9.66 Lakh Cr | 11.20 | 12.2% | 1.38 | View |
| Bajaj Finance Ltd. (BAJFINANCE) | 68/100 | ₹6.72 Lakh Cr | 33.07 | 13.9% | 3.86 | View |
| Life Insurance Corporation of India (LICI) | 87/100 | ₹5.22 Lakh Cr | 8.70 | 37.8% | 0.00 | View |
Frequently Asked Questions: JM Financial Ltd.
Q:What is the 5-Pillar Fundamental Score for JM Financial Ltd. (JMFINANCIL)?
JM Financial Ltd. has a RupeeTools Fundamental Score of 70/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (73/100), Financial Health (57/100), Growth (60/100), Valuation (90/100), and Ownership Quality (78/100).
Q:Is JMFINANCIL fundamentally strong for long-term investment?
Yes, JMFINANCIL exhibits solid fundamental strength with a 70/100 score, driven by a return on equity of 11.3% and a debt-to-equity ratio of 1.09.
Q:Does JMFINANCIL pass the Coffee Can Investing filter?
No. JMFINANCIL does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does JMFINANCIL compare against other Financial Services peers?
Within India's Financial Services sector, JMFINANCIL trades at a P/E of 11.63 and generates an ROCE of 15.5%. Compare its 5-Pillar score of 70/100 against top sector peers like HDFC Bank Ltd. (74/100), ICICI Bank Ltd. (76/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.