SP Tulsian of sptulsian.com told CNBC-TV18, “JM Financial- if you see the events having unfolded at the company and in the last 15 days, first the good Q4 numbers where things have really been and still if you really see, now the share is virtually ruling at its book value which is placed at close to Rs 27.50-28 as on March 31, 2013.”
He further added, “They have given a clear roadmap firstly of their intension of foraying into the banking and secondly of appointing Vikram Pandit as the non-executive chairman whenever they will be getting the bank licenses. Apart from that, induction of Vikram Pandit in the other areas that is increasing the lending business, increasing the stress debt assets, division also with infusion of the capital to the extent of Rs 1,000 crore plus with a minority stake being given to Vikram Pandit, all these things really auger quite well. That means the company which was stagnant for about last two-three years because of the various reasons now seems to be on a takeoff stage. If you really see the price performance of many other finance companies, they have really grown in the last two years while this has remained stagnant.”
“I am keeping the positive stance and you see these sporadic moves once you see the stock moving up by 10-15 percent in couple of days then it takes a pause of about a week or so and again starts moving up. So, longer view is quite positive on the stock. If somebody can keep a view of about six months can look for a price of Rs 35-36 in the stock. While very limited downside is seen, in the technical parlance, one can say that the support is seen at Rs 26-27.”
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