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Please refer to important disclosures at the end of this report
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JM Financial is one of India’s prominent financial services groups, specializing in
providing a spectrum of businesses to corporations, financial institutions, high
net-worth individuals and retail investors. Financial services company JM
Financial will also start an affordable mortgage lender and a property
brokerage, extending its real estate lending business. The company has sought a
licence for JM Financial Home Loans Ltd from the National Housing Bank (NHB)
and expects the same in around six months. The HFC (housing finance company)
business will focus on providing finance for housing of low and mid-income
range customers. The average ticket size could be `10-15 lakh. The company
will start ramping up the business from June and July next year and in three
years, we expect to grow the business to around `2,500-3,000crore. JM
Financial is well capitalized and the size of the NBFC is expected to grow to
around `15,000crore, with the real estate lending book alone growing to about
`11,000crore in the next 2-3 years. The Company is expected to give good
quarterly performance. The company has been maintaining a healthy dividend
payout of 31.5% (Div Yield: 1.5%). Hence Buy.
BUY
CMP `124
52 Week High / Low
131/45
Avg. Daily Volume
3,13,774
Financial Services
Market Cap (` cr)
9,875
1
BSE Sensex
31,159
Nifty
9,625
Face Value (`)
Reuters Code
JMSH.BO
2.1
Vaibhav Agrawal
022 3935 7800 Ext: 6808
[email protected]gelbroking.com
JM Financial
Others | Financial Services
May 31, 2017
2
JM Financial | Financial Services
May 31, 2017
2
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
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Disclosure of Interest Statement JM Financials
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
over 12 months investment period): Reduce (-5% to -15%) Sell (< -15)