Jammu & Kashmir Bank Ltd. (J&KBANK) AI Stock Analysis

• Market Cap: ₹130.66B
• Dividend Yield: 1.03%
• Average Volume (3M): 199.64K
• Price to Earnings (P/E): 30.1
• Beta (1Y): 0.97
• Revenue Growth: 9.52%
• EPS Growth: 1.91%
• Country: IN
• Employees: 12,415
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 5.28
• Shares Outstanding: 1,101,182,500
• 10 Day Avg. Volume: 155,842
• 30 Day Avg. Volume: 199,638
• PEG Ratio: -0.98
• Price to Book (P/B): 4.88
• Price to Sales (P/S): 1.48
• P/FCF Ratio: 29.23
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 16.3
• Revenue Forecast (FY): ₹68.31B

• Rating: 71 Outperform
• Price Target: ₹134.00 ▲(33.07% Upside)
• Action: Reiterated Date: 03/11/26
• Date: Action: Reiterated 03/11/26

The score is driven primarily by strong financial performance (notably rapid revenue growth, improving margins, and low leverage). This is offset by weaker support from valuation (high P/E and low dividend yield) and limited technical confirmation due to missing indicator data.

Positive Factors

Strong revenue growth & margins

A 65.2% revenue jump with improving gross and net margins indicates durable business traction in lending and fee businesses. Improved margins reflect pricing power and cost control, supporting internal earnings retention to fund growth and provisions over the next several months.

Low leverage / strong capitalization

A low debt-to-equity ratio and strong equity base signal solid capitalization that can absorb credit shocks and support incremental lending. This balance-sheet strength reduces refinancing risk and provides regulatory headroom for growth or provisioning needs over a medium-term horizon.

Improved operating cash generation

Material improvement in operating cash flow and strong cash conversion from net income indicate core banking operations are generating real cash. Durable operating cash supports loan funding, working capital and reduces near-term reliance on external liquidity sources.

Negative Factors

Negative free cash flow growth

Negative free cash flow growth suggests cash outflows (investment, working capital or other) exceed operational cash generation. If persistent, it can limit discretionary spending, constrain dividends or require external funding, weakening financial flexibility over the coming months.

Questionable sustainability of revenue surge

A very high recent revenue increase may reflect cyclical benefits, one-off items or accelerated recognition. If growth normalizes, margin and earnings momentum could slow, creating execution risk for maintaining current profit expansion and internal capital generation.

Regional concentration risk

A concentrated franchise focused on Jammu & Kashmir raises exposure to local economic, political and regulatory cycles. Limited geographic diversification can amplify credit and deposit volatility, constraining stable growth and increasing vulnerability to regional shocks over 2–6 months.

Jammu & Kashmir Bank Ltd. Business Overview & Revenue Model

Company Description

The Jammu and Kashmir Bank Limited provides various banking products and services. The company operates through Treasury Operations, Corporate/Wholesale Banking, Retail Banking, and Other Banking Business segments. It offers savings, current, salary, pension, and small accounts; and term deposits. The company also provides housing, consumer, education, term, car, coaching fee, personal consumption, and skill loans; festival advances; and laptop/PC, smartphone, school education, modular kitchen, Sahafat, solar equipment, and two-wheeler finance services, as well as cash credit schemes, and loans against gold ornaments and jewellery. In addition, it offers commercial vehicle, school bus, passenger bus/mini bus, dastkar, craftsmen, commercial premises, contractor, mini sheep farm establishment, construction equipment, and tourism financing services; Saral financing services to small businessmen; mortgage loans for trade and service sector, loans against mortgage of immovable property, fair price shop schemes, and start-ups financing services; Karobar cards; guaranteed emergency credit lines; credit guarantee schemes for subordinate debt; agroterm loans, fruit advances schemes, and Giri finance schemes; debt swap schemes for farmers; and mortgage loan schemes for agricultural produce traders. Further, the company provides govt sponsored schemes; life and non-life insurance products; debit, credit, and prepaid cards; and merchant acquiring services. As of March 31, 2022, it operated 980 branches and 1404 ATMs in India. The company serves business enterprises, employees of government, semi government and autonomous bodies, farmers, artisans, public sector organizations, and corporate clients. The Jammu and Kashmir Bank Limited was incorporated in 1938 and is headquartered in Srinagar, India.

How the Company Makes Money

J&KBANK primarily makes money through (1) net interest income and (2) non-interest (fee and other) income. Net interest income is earned from the spread between interest collected on earning assets—mainly loans and advances to retail customers, MSMEs and corporates, and interest-bearing investments such as government and other approved securities—and interest paid on funding sources such as savings accounts, current accounts, term deposits, and borrowings. The bank’s profitability is therefore driven by loan growth and yields, the cost and mix of deposits (especially the share of low-cost current and savings deposits), the size and composition of its investment book, and credit costs arising from loan losses and provisioning. Non-interest income typically comes from fees and commissions charged for services such as account-related charges, remittances and payment services, card and digital transaction fees, trade finance and transaction banking services, loan processing/servicing and documentation fees, distribution/third‑party products (e.g., insurance or mutual fund distribution, where applicable), and commissions related to government or institutional business when undertaken. Additional earnings can also arise from treasury and investment activities (for example, gains or income on the bank’s securities portfolio, subject to market movements and regulations). If the bank has specific disclosed partnerships or material line-item contributors beyond these standard banking streams, they are not available in the prompt and are therefore null.

Jammu & Kashmir Bank Ltd. Financial Statement Overview

Summary

Strong income statement performance (revenue up 65.2% with improving profitability and healthy EBIT/EBITDA margins) and a stable balance sheet (low leverage with 0.17 debt-to-equity and robust ROE). Cash flow is mixed: operating cash flow improved, but free cash flow growth is negative, which tempers the overall financial score.

Income Statement

Jammu & Kashmir Bank Ltd. has demonstrated strong revenue growth with a 65.2% increase in the most recent year. The gross profit margin and net profit margin have shown improvement, indicating enhanced profitability. The EBIT and EBITDA margins are healthy, reflecting efficient operational management. However, the high revenue growth rate may not be sustainable in the long term.

Balance Sheet

The bank maintains a solid equity base with a debt-to-equity ratio of 0.17, indicating low leverage and financial stability. The return on equity is robust, showcasing effective use of shareholder funds. The equity ratio is strong, suggesting a well-capitalized balance sheet. However, the total debt has increased slightly, which could pose a risk if not managed carefully.

Cash Flow

The operating cash flow has improved significantly, indicating better cash generation from core operations. However, the free cash flow growth rate is negative, which could be a concern if it persists. The operating cash flow to net income ratio is strong, suggesting good cash conversion, but the free cash flow to net income ratio has room for improvement.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	111.43B	137.77B	119.74B	100.36B	87.66B	33.19B
Gross Profit	55.46B	70.36B	59.66B	54.26B	46.65B	33.19B
EBITDA	29.11B	31.07B	26.06B	19.44B	8.91B	0.00
Net Income	21.43B	20.82B	17.71B	11.81B	4.95B	4.28B
Balance Sheet
Total Assets	1.77T	1.69T	1.55T	1.46T	1.31T	1.20T
Cash, Cash Equivalents and Short-Term Investments	62.37B	1.20B	81.96B	88.99B	87.92B	95.04B
Total Debt	23.82B	23.83B	28.85B	28.92B	23.71B	20.15B
Total Liabilities	1.62T	1.55T	1.42T	1.36T	1.22T	1.13T
Stockholders Equity	154.91B	142.08B	121.93B	98.96B	80.77B	68.02B
Cash Flow
Free Cash Flow	718.45M	50.39B	933.56M	-5.31B	-16.53B	-901.48M
Operating Cash Flow	763.85M	51.41B	1.05B	-4.07B	-15.68B	-141.65M
Investing Cash Flow	-44.39M	-1.02B	-2.57B	-1.24B	-851.85M	-759.83M
Financing Cash Flow	-458.90M	127.54B	131.43B	6.38B	9.41B	-1.99B

Jammu & Kashmir Bank Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TMB	79 Outperform	₹95.04B	5.96	―	2.15%	7.08%	7.69%
J&KBANK	71 Outperform	₹130.66B	30.11	―	1.03%	9.52%	1.91%
CUB	69 Neutral	₹181.23B	16.23	―	0.69%	14.95%	14.22%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
UTIAMC	65 Neutral	₹121.36B	29.94	―	2.30%	-9.65%	-30.52%
CSBBANK	58 Neutral	₹65.04B	13.04	―	―	32.90%	12.28%
RBLBANK	58 Neutral	₹180.52B	21.28	―	0.33%	6.67%	-54.96%