Stock Snapshot
Price Performance
Recommendation Rationale
Favorable growth outlook supported by recovery in profitability and asset quality.
Basis of our Recommendation
Jana Small Finance Bank is poised for significant growth in FY27, driven by a recovery in profitability and asset quality. The bank's improved credit costs and strong unsecured portfolio position it well for future expansion, despite some operational challenges.
Why We Like This Stock
- Strong recovery in profitability
- Improved asset quality
- Robust unsecured portfolio
Things To Watch Out For
- Operational challenges
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 2,128 | 2,393 | 2,593 | 2,936 | 3,321 |
| Profit Before Tax (Cr.) | 514 | 474 | 326 | 571 | 659 |
| PBT Margin | 24.2% | 19.8% | 12.6% | 19.5% | 19.8% |
| Net Profit (Cr.) | 670 | 501 | 326 | 428 | 494 |
| EPS | 63.6 | 47.6 | 31.0 | 40.7 | 46.9 |
Company Overview
Show Company Profile
Jana Small Finance Bank Limited provides banking and financial services to individuals and enterprises in India. It operates through Treasury, Corporate/Wholesale Banking, Retail Banking, and Other Banking Operations segments. The company offers current and savings accounts; fixed, recurring, and other deposits; and loans, such as two-wheeler, group, business, gold, home improvement, agri group and individual, and home loans, as well as consumer education on loan overdue concepts. It also offers life, general, and health insurance products; cards; and investment and payment services, as well as mobile, internet, and corporate internet banking services. The company was formerly known as Janalakshmi Financial Services Limited and changed its name to Jana Small Finance Bank Limited in March 2018. Jana Small Finance Bank Limited was founded in 1999 and is headquartered in Bengaluru, India.