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.