JM Financial can move to Rs 30 in the next six months, says SP Tulsian of sptulsian.com.
Tulsian told CNBC-TV18, "Wherever we have seen this kind of negative perception for the sector or for the stock, the price has taken a huge beating and in fact it applies to JM Financials also. We have seen price moving to about Rs 45, maybe three-four months back on the rumour of the stake sale by the promoters and all that, when that was done by the Enam promoters. At that time, it went up to Rs 45."
He further added, "If I go by the pure financials by the core business model of the company, this has a good presence in the broking mutual fund business, realty asset management. If we take a call on the earnings also, the share is ruling at a PE multiple of close to about ten because company has been consistently delivering the performance, the bottom-line has been about Rs 145 crore for Q3 on a top-line of about Rs 702 crore."
"If you see the results, it has been equally divided in all three quarters that means they have a stable working and this is expected from Q4 as well. So, taking all this into consideration, whenever you have renewed interest coming back in these stocks or maybe because of the some corporate announcements or some expectations coming, the stock takes good jump from these levels. So, downside is virtually low. But one can expect a price to move to at least Rs 30 in next six months."
