Target: ₹160

CMP: ₹134.05

JM Financial is India’s leading integrated and diversified financial services group. With a legacy spanning over five decades, the firm has expertise across businesses including corporate advisory and capital markets, wealth and asset management, private markets and affordable home loans.

While JM Financial continued to maintain its leadership position in Corporate Advisory and Capital Markets (which includes investment banking, institutional equities, and research), the company’s earnings were weighed down by legacy balance sheet exposures post covid. Historically, JM Financial had been a relatively large player in real estate financing, with meaningful on-balance sheet exposure to the sector (including land financing), alongside exposure to distressed credit / ARC assets.

Given that from hereon, the focus of the Company is on high growth and high RoE businesses unlike earlier which were balance sheet heavy businesses, along with a high dividend payout ratio, the overall RoEs of the company is expected to improve from hereon. We have modelled RoE to increase from 9.4 per cent in FY25 in 12-13 per cent in FY28E.

Given the low capitalisation needs and a free cash flow generated in the group (specially from the CACM segment and private markets), the dividend payout ratio is expected to remain strong.

At CMP there is hardly any value assigned to the wealth, AMC and private markets We value JM Financial on a SOTP basis and arrive at a target price of ₹160 and initiate coverage with a Buy rating.

Published on April 10, 2026