JM Financial Shares Drop As Q1 Profit Falls

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(Photo source: JM Financial website)

Shares of JM Financial Ltd. tumbled on Friday after its profit fell in the first quarter.

The investment firm's consolidated net profit declined 11% year-on-year to Rs 176.6 crore in the June quarter, according to an exchange filing on Thursday.

JM Financial Q1 FY24 Highlights (Consolidated, YoY)

  • Revenue up 35% at Rs 1,065 crore.

  • Net interest margin at 6% vs 6.9%.

  • Gross non-performing assets at 4% vs 3.5%.

  • Net NPA at 2.31% vs 2.32%.

  • Gross loan book up 26% at Rs 15,891 crore.

  • Net profit down 11% at Rs 176.6 crore.

The board also approved the appointment of Nishit Shah as chief financial officer in place of Manish Sheth.

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Shares of JM Financial tumbled 6.25% intraday, the lowest since Dec. 22. The stock pared losses to trade 4.21% lower at Rs 77.40 apiece, compared to a 0.51% gain in the benchmark NSE Nifty 50 as of 10:30 p.m.

The stock has gained 6.99% year-to-date. The total traded volume stood at nine times its 30-day average. The relative strength index was at 52.73.

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Both the analysts tracking JM Financial maintain a 'buy' rating on the stock, according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 43.9%.

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