Thursday, May 16, 2013

Buy JM Financials For Longterm

JM Financial is an integrated financial services group, offering a wide range of services to a significant clientele that includes corporations, financial institutions, high net-worth individuals and retail investors.

The Group has interests in investment banking, institutional equity sales, trading, research and broking, private and corporate wealth management, equity broking, portfolio management, asset management, commodity broking, NBFC (Non Banking Finance Company) activities, private equity and asset reconstruction. While each of these businesses is independent in itself, they share the Group’s belief of trust being the most important factor for the organisation. The values of integrity, teamwork, innovation, performance and partnership shape the corporate vision and drive it to its purpose. 

Former Citigroup Chief Executive Vikram Pandit is buying a stake in financial services company JM Financial Ltd, JM Financial said in a statement on Thursday.

Pandit, who resigned from Citi last October, will also become non-executive chairman of JM Financial's banking arm if it succeeds in getting a banking license, the company said.

India is in the process of issuing new bank licences for the first time since 2004, and numerous companies are expected to apply. Pandit will have the right to buy shares in the proposed bank.

JM Financial said it would expand its lending and financing businesses by issuing $100 million in capital to funds raised and managed by a firm led by Pandit.

JM Financial, one of India's largest domestic financial firms, also said it would set up a fund jointly with Pandit's firm to buy distressed assets. The fund is targeting an initial capitalisation of $100 million.

Pandit said he had known JM Financial for more than two decades. "Given the opportunity, JM Financial can provide the banking and financial services that the country needs," he said in JM Financial's statement.

Pandit and his business partner, Hari Aiyer, will buy a 3 percent equity stake in the financial services company through an issue of warrants, the Indian company said. JM Financial has a market capitalisation of Rs.2000 crore

Currently JM Financial is trading at Rs.23 with PE ratio of approx 35.In regards to Vikram Pandit stake buy I assign a long term bullish view on the company with a target of 50 plus