JM Fi­nan­cials

Flash News Investment - - RECOMMENDATIONS -

JM Fi­nan­cials is a com­pany pro­vid­ing fi­nan­cial ser­vices with strong mar­ket shares in niche seg­ments like in­vest­ment bank­ing and as­set re­con­struc­tion. The in­creas­ing NPAs in bank­ing sys­tem will raise op­por­tu­ni­ties for the com­pany’s as­set re­con­struc­tion seg­ment. In FY17, out the to­tal loan dis­bur­sals, the com­pany had dis­bursed 78 per cent to­wards com­mer­cial real es­tate sec­tor. De­mon­eti­sa­tion and RERA would in­vite more or­gan­ised play­ers in the real es­tate sec­tor, which would boost project fi­nanc­ing in the long run. It has ex­ited from non-core in­vest­ments and has in­creased its fo­cus on the fast grow­ing lend­ing busi­ness. This would fur­ther help the com­pany in ex­pand­ing its base in new ge­ogra­phies. In FY17, it main­tained strong NIM of 7.7 per cent and CAR of 24%. Con­sid­er­ing these fac­tors, we rec­om­mend our read­ers to BUY the scrip.

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