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getmanoj
Senior Member
Joined: 08/Sep/2006
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Posts: 130
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   Topic: JM Financials - A Financial services play
Posted: 24/Aug/2007 at 5:53pm |
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Hi,
For last few months the performance of JM mutual fund has been better than other MFs. Reason might be "Sandeep Sabharwal". He had performed brilliantly as fund manager for SBI MF.
Basant ji, the way JM financial is performing and also becoming bigger day by day, does it make sense in investing in JM Financial at these levels?
I don't know how to value their balance sheet or know what other activity they are doing other than MFs, so thought to put it on TED....
Manoj
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basant
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Posted: 24/Aug/2007 at 6:02pm |
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The best way to go about it is to take their AUm generally equity AUm is valued at 6% while debt goes for 3% and then compare this with the market cap. Any figures on that?
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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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getmanoj
Senior Member
Joined: 08/Sep/2006
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Posted: 24/Aug/2007 at 6:38pm |
| Assets under management |
Rs. 4383.40 crore |
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as on |
Jul-31-2007 |
Market Cap on current date: 3990 crore. Just going through the Annual report i found that Company has allotted 875,000 equity shares for an amount aggregating Rs. 55.91 crore to Mr. Azim Hasham Premji..... Now when we have the AUM and market cap ...how can we measure if it is overvalued or undervalued?
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basant
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Posted: 24/Aug/2007 at 6:41pm |
The AUm is very small compared to the market cap. the company should also be having some cash and other businesses because if we take a 5% consolidated figure for the AUm then this is valued at Rs 240 crores which is almost nothing compared to the market cap!!!
What businesesn are they into apart from this?
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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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getmanoj
Senior Member
Joined: 08/Sep/2006
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Posted: 24/Aug/2007 at 6:42pm |
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Sandeep Sabharwal also fulfills ur one of the criteria (IIT +IIM)....
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getmanoj
Senior Member
Joined: 08/Sep/2006
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Posted: 24/Aug/2007 at 8:02pm |
I don't know if i am missing anything there but here you can find the Balance sheet of the company: http:// www.moneycontrol.com/india/stockpricequote/financeinvestments/jmfinancial/18/34/balancesheet/marketprice/JMF
Also at, http:// www.jmfinancial.in/DispAnnlReport.aspIf you find time, please have a look. Manoj
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equity-shishya
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Joined: 18/Aug/2007
Location: India
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Posted: 24/Aug/2007 at 8:10pm |
I think Nimesh Kampani is the director of JM financial
JM is big time into M&A. From what I read, Nimesh seems to have a great rapport with the who&who of Indian Biz. This should ensure that JM gets a big share of M&A biz
Reliance banking fund has 7% allocation to JM
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deveshkayal
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Joined: 04/Sep/2006
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Posted: 24/Aug/2007 at 10:45pm |
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Investment banking is an interesting area of JM but then those who have Banks attached to them will always be in a better position for the mandate from their prospective clients. Also,JM operations is restricted to India, so global players like Morgan Stanley,UBS,GS will lead. IB is a people oriented business, salaries and bonuses are hitting the roof. So i am not comfortable with the M&A space, IPOs & FPOs are interesting though.
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"You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett
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