JM FINANCIAL: flagship business for the group is investment banking, with over five decades of experience

  • JM FINANCIAL: flagship business for the group is investment banking, with over five decades of experience

  • Established market position across capital market businesses and diversified business model
  • The group has developed a strong franchise in key operating segments such as investment bank, institutional and retail broking, wealth management and private credit syndication. 
  • This is aided by the track record and reputation of its experienced management and healthy client relationship. 
  • The group has a strong network of borrowers with whom they have long relationship. 
  • Over the years the company has also strengthened its risk department. 
  • Further, the group has gradually scaled up mortgage lending with a focus on the affordable segment.
  • The flagship business for the group is investment banking, with over five decades of experience. 
  • This has resulted in JM Financial group establishing a strong brand and a network of loyal clientele, making it one of the leaders in this domain. 
  • The group has market leadership in equity capital markets and mergers & acquisition and has strong presence across other verticals like private equity and advisory business. 
  • Over years, the group has also expanded in other capital market businesses and now has established presence broking both institutional and retail- and wealth management (Assets Under Management (AUM) of Rs 1.1 lakh crore as on December 31, 2024). 
  • While the group is developing newer offerings and products within these segments and trying to cater to a wider set of customers, it is also focusing on building stronger presence in asset management segment, with focus towards alternate asset management and mutual fund business. 
  • On the lending front, the group had a loan book of Rs 7,947 crores as on December 31, 2024, comprising wholesale mortgage (39%), retail mortgage (36%), bespoke (18%), Financial Institutions Financing (6%) and capital markets lending (1%). 
  • With the business pivot towards debt syndication for wholesale financing, the lending book of the group has degrown over last few quarters. 
  • Going forward, the affordable home loans portfolio (started in FY2017) will continue to grow on balance sheet. However, the strategy on wholesale credit, including distressed assets business done via the ARC, will be to originate and sell down with only 20-30% exposure of the group. 
  • For this, the group plans to continue to leverage its strong underwriting experience, existing relationship with developers and corporates, and reach towards partners and investors. 
  • Crisil Ratings will continue to monitor the ability of the group to further strengthen its fee based businesses and successfully implement the shift in the lending business.


Video: https://youtu.be/g_WyZHxD4W8?si=-QKKVbvM4tjpPXdu

NBFC is a highly interesting space and i spend a lot of time in finding businesses that are niche category ones in this particular space

When you find a company, try gathering the unique offering it caters to a sub category

Here JM financial is full service investment bank offering

  • Distressed Credit AUM as on June 2023 stood at Rs. 15,109 Cr (up 32% YoY and up 11% QoQ) 
  • Aggregate dues of Rs. 77,058 Cr – June 30, 2023 acquired at Rs. 23,776 Cr 
  • JMFARC’s aggregate cash investment of Rs. 6,659 Cr till June 30, 2023
  • ROA %:  2.4% 
  • Consolidated Performance : Diversified Business Model for Earnings Resilience 
  • 50 member professional team as on June 30, 2023
    • The team is also involved in financial and legal due diligence for acquisitions and resolutions    
  • Co-Investment model with strategic partners/ financial investors including distressed funds

Thank you for contacting Rounaq! Please let us know how we can help you. 

Whatsapp: 7838491131

SEBI registered RA : Rounaq Bakshi
Waheguru

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