JM FINANCIAL
(NSE: JMFINANCIL)
Business:
Diversified financial services group with presence across investment banking, capital markets, wealth management, asset management, private markets and affordable home loansIncreasing focus on scaling fee based and recurring businesses, which can make earnings more sustainable over timeQ1 FY27 Performance š
Consolidated Net Revenue: ā¹883 Cr | +13% YoYPre Provision Operating Profit: ā¹469 Cr | +21% YoYConsolidated PAT: ā¹292 CrPrivate Markets remained a major earnings contributor, supported by strong resolutions and recoveriesWealth business continues to scale with recurring AUM reaching around ā¹33,400 CrKey Positives š¢
FY26 PAT reached a record ā¹1,202 Cr | +46% YoYStrong capitalisation with group CAR at 37.6%Comfortable gearing at around 1xWealth and Asset Management provide recurring fee incomeAffordable home loans AUM reached ā¹3,460 Cr in FY26, growing 22% YoYMutual Fund non liquid AUM grew 31% YoY in FY26Growth Triggers š
Expansion of wealth management and recurring AUMGrowth in asset management and mutual fundsStronger investment banking and capital markets activityPrivate market resolutions and recoveriesScaling of affordable housing financeIncreasing contribution from fee based businessesWhat Iām Watching ā ļø
Earnings remain exposed to capital market cyclesPrivate Markets profitability can vary depending on recoveries and resolutionsGroup GNPA remains elevated at around 9.2%, although net NPA is much lower at 1.9%Corporate advisory revenue can be volatile depending on primary market activityOverall View:
JM Financial is an interesting diversified financial services story with multiple earnings engines.
The main attraction for me is the gradual shift towards wealth, asset management and other fee based businesses, while private markets and investment banking provide additional upside during favourable cycles.
The key metrics remain recurring AUM growth, capital markets activity, private market recoveries and asset quality.
Technical Setup:
š Refer to the chart for my technical levels, support/resistance zones and price action view.
Disclaimer: Educational content only. Not investment advice. Please do your own research.
