JM Financial

(Sandeep Patel) #22

JM Financial Q3 results… Impressive…

Wealth Management

  • The AUM stood at Rs. 31,910 Cr (excluding custody assets) as on Dec 31, 2017 as compared to Rs. 27,289 Cr as of Sep 30, 2017 and Rs. 22,337 Cr as of Dec 31, 2016.

Fund based business

  • The lending book of JM Financial Products stood at Rs. 7,043 Cr as on Dec 31, 2017 as compared to Rs. 6,192 Cr as of Sep 30, 2017 and Rs. 4,123 Cr as of Dec 31, 2016…
  • The lending book of JM Financial Credit Solutions stood at Rs. 6,475 Cr as on Dec 31, 2017 as compared to Rs. 5,708 Cr as of Sep 30, 2017 and Rs. 4,822 Cr as of Dec 31, 2016…

Mutual Fund

  • The average AUM of our Mutual Fund schemes during the quarter ended Dec 31, 2017 stood at Rs. 16,633 Cr as compared to Rs. 13,952 Cr as of September 30, 2017

Securities business

  • During the quarter, the average daily trading volume stood at Rs. 5,688 Cr


(Sameer Wakude) #23

Recently I read a news about JM selling 32% stake in Sona BLW for a good profit. I would like to know, which companies are there in which JM Financials holds a stake? I tried to find this information in annual report and investor presentation, but couldn’t find any.

(Deep_Mehta) #24

They also hold 24.5% stake in India home loan ltd, a micro-cap HFC.

(Sunday) #25

If we are to compare the financial performance of Consolidated Companies which have multiple verticals, which ratios/values does one need to take into account for the different verticals under the Consolidated parent business.

Any pointers would be quite helpful. I need to compare Edelweiss, JM financials and Aditya Birla Capital.

(Rohit Ojha) #26

The 650cr QIP was done at 162 and the stock fell to 125 odd levels. It trades at a price to book of about 2.6, which I think is reasonable for a company that is growing more than 30% with great return ratios. Promoters have bought about 0.19% from open market between 5-9th March in recent fall.

Below is a slide from the corporate presentation showing the strong track record.

They seem to be slowing down on real estate lending post ReRA and GST. Some research reports say that this is a cautious stand from the company.

On charts, 130 odd level should be a good support.


very brief but nice fundamental and technical analysis

(Rohit Ojha) #28

More on JM-

Current loan book is 14360 cr, of which

  1. 8390cr is real estate lending…This will not grow more than 15-20%. There will be some pressure on the yields as the company is moving towards more conservative deals. They have been very conservative on the real estate lending front. JM just stopped lending for 2-3 months post demonetization and picked it up slowly later.

  2. 3180cr is capital market (margin finance, LAS). This will grow fast

  3. 2790 cr Corporate credit and structured finance (including LAS). They will gain market share from PSU banks.

JM’s focus area is HFC, followed by SME lending (LAP and working capital) and they plan to build a book of 2500-3000 cr in each of these over next 3 years. In next 3 years they plan to have 20-25000cr book.

Currently they are the least leveraged NBFC with debt to equity of about 2.5 odd, which has good scope to go up. They can go up to 6 when it comes to HFC and SME.There will be pressure on NIMs and ROA but that will be compensated by increased leverage to maintain RoE. Investments in SME and HFC are expected to improve RoEs in FY19 and FY20

In HFC, JM Financial will offer loans to home buyers across 6-7 affordable home projects that it has already selected. The focus areas will be the extended Mumbai suburbs including Kalyan, Thane, Vasai and Mira-Bhayander in tandem with Ahmedabad and Pune. The average ticket sizes may be within Rs.10-15 lakhs on an average (Link)

Here is a link from 2016 saying JM wants to be 40% real estate, 30% corporate and 30% SME by 2021. However, this was a while back and there would be some course correction.

Good interview of Vishal Kampani from Oct 2017