J J Finance Corporation Reports Weak ROE Amid Strong Stock Performance and Valuation Metrics

Dec 23 2024 06:23 PM IST

Share Via

J J Finance Corporation has recently experienced a revision in its stock evaluation by MarketsMojo, reflecting concerns over its long-term fundamental strength. Despite facing liquidity challenges and a downgrade in its stock call, the company maintains a technically bullish position and has delivered impressive returns over the past year. In a recent analysis, MarketsMojo adjusted its evaluation of J J Finance Corporation, citing weak long-term fundamentals, particularly an average Return on Equity (ROE) of 2.71%. The company's operating cash flow has dipped into negative territory, raising liquidity concerns. However, technical indicators suggest a mildly bullish outlook, with signals from MACD, Bollinger Bands, and KST pointing towards potential upward momentum. Despite these challenges, J J Finance Corporation presents an attractive valuation, boasting a ROE of 6.9 and a Price to Book Value ratio of 1.2, indicating it is trading at a discount compared to historical valuations. Over the past year, the stock has significantly outperformed the BSE 500 index, achieving a remarkable return of 164.54%, while the company's profits surged by 67%. The majority of shareholders are the company's promoters, reflecting strong internal confidence. Additionally, the stock has been added to MarketsMojo's list, highlighting its potential despite the recent challenges.

J J Finance Corporation, a microcap player in the finance and non-banking financial company (NBFC) sector, has recently reported mixed financial metrics that highlight its current market position. The company has demonstrated a notable return of 164.54% over the past year, significantly outpacing the BSE 500 index, which recorded a return of 16.96%.

Despite this impressive performance, J J Finance Corporation faces challenges in its long-term fundamental strength, reflected in an average Return on Equity (ROE) of 2.71%. The company's operating cash flow has also dipped to Rs -0.44 crore, indicating potential liquidity concerns.

On a more positive note, the stock is technically positioned within a mildly bullish range, supported by indicators such as MACD, Bollinger Bands, and KST. The company boasts an attractive valuation with a Price to Book Value ratio of 1.2 and a ROE of 6.9. Additionally, profits have increased by 67% over the past year, while the company's PEG ratio stands at 0, suggesting a favorable valuation relative to its growth.

Promoters hold the majority of shares, reinforcing their commitment to the company’s direction.

{{stockdata.stock.stock_name.value}} Live

{{stockdata.stock.price.value}} {{stockdata.stock.price_difference.value}} ({{stockdata.stock.price_percentage.value}}%)

{{stockdata.stock.date.value}} | BSE+NSE Vol: {{stockdata.index_name}} Vol: {{stockdata.stock.bse_nse_vol.value}} ({{stockdata.stock.bse_nse_vol_per.value}}%)

MOJO SCORE