JM Financial

Has time come?

First, Get a gem daily on WhatsApp

We wrote about finding ideas using long consolidation model here, one of ideas that popped up in my weekend screening few weeks back was JM Financial (NSE: JMFINANCIL)

The stock qualified long consolidation with no returns for 3+ years

Normally when stock is range bound earnings are stagnant or declining , which is the case for this company, if the sales are also declining than usually I strike it off and dont do any more work on the idea,

but for JM Fin revenues have increased, this kept my interest going :)

So next logical check why have revenues increased but profits remained flat/ decreased over years?

The answer lies when you check their business segment results, they clearly show what has been the problem

Revenue and Profits break up (INR Crores)

Mortgage lending and Distressed credit division have impacted overall profitability of the group considerably

Is anything going to change?