Buy JM Financial, target price Rs 95: ICICI Direct

ICICI Direct has buy call on JM Financial with a target price of Rs 95. The current market price of JM Financial is Rs 72.59 Time period given by analyst is a year when JM Financial price can reach defined target.

JM Financial, incorporated in the year 1986, is a Mid Cap company (having a market cap of Rs 6931.88 Crore) operating in Financial Services sector.

JM Financial Ltd. key Products/Revenue Segments include Fees & Commission Income, Income From Financial Services, Interest and Income From Sale Of Share & Securities for the year ending 31-Mar-2022.



Financials
For the quarter ended 31-03-2023, the company has reported a Consolidated Total Income of Rs 871.16 Crore, down -7.92 % from last quarter Total Income of Rs 946.13 Crore and up 3.81 % from last year same quarter Total Income of Rs 839.22 Crore. Company has reported net profit after tax of Rs 32.55 Crore in latest quarter.

The company’s top management includes Mr.Nimesh Kampani, Mr.Vishal Kampani, Mr.Atul Mehra, Mr.Adi Patel, Ms.Jagi Mangat Panda, Mr.P S Jayakumar, Mr.Navroz Udwadia, Ms.Roshini Bakshi, Mr.Sumit Bose. Company has Deloitte Haskins & Sells LLP as its auditors. As on 31-03-2023, the company has a total of 95 Crore shares outstanding.

Investment Rationale
Given the diversified business segment, the brokerage values JM using SOTP valuation andvaluing business segments individually, it arrives at a target price of | 95 (10.7xFY25E consolidated EPS) and assign BUY rating to the stock.

Furthermore, ICICI Direct expects a gradual pick-up in business momentum and earnings trajectory with the same getting reflected in valuation.

Promoter/FII Holdings
Promoters held 56.49 per cent stake in the company as of 31-Mar-2023, while FIIs owned 21.24 per cent, DIIs 7.47 per cent.