J & K Bank (J&KBANK)

FairStock Score: 72/100 — STEADY

Score breakdown: P/E: 3/3 · ROCE: 0/2 · Growth: 1/2 · Dividend: 0/1

Key Financials

Strengths

• P/E of 6.24 and P/B of 0.99 with book value at ₹129.03 offer a clear margin of safety; Graham Number is ₹245.20
• ROE of 15.08% supports a healthy ~16% earnings yield at this price
• Piotroski F-Score of 8/9 and free cash flow of ₹2,621 Cr indicate sound financial health
• Promoter holding of 59.40% provides ownership stability and aligned incentives
• Dividend yield of 1.77% gives some downside support while waiting

Concerns

• Profit growth of just 0.45% despite sales growth of 6.97% means the bottom line is not keeping pace
• High debt/equity of 10.62 is typical for a bank but amplifies risk if asset quality deteriorates
• Altman Z-Score of 0.38 raises a red flag, although bank-specific applicability is questionable
• Stock is down sharply from its 52-week high of ₹202.00, suggesting the market may be pricing in concerns

AI Analysis

Plainly, J&K Bank is not the kind of business I normally love—banking is commoditised, leverage-heavy, and the numbers must be read with accounting goggles. But the scoreboard here is hard to ignore: a 6.24 P/E and a 0.99 P/B against a book value of ₹129.03 and an ROE of 15.08%. That means I am buying a rupee of book value at roughly a rupee, and the earnings yield is about 16%. Benjamin Graham would ask whether the asset is solid; the Piotroski score of 8/9 and free cash flow of ₹2,621 Cr suggest the financial position is not a house of cards. The Graham Number says fair value is near ₹245.20, giving me around a 50% margin of safety. Promoter holding of 59.40% gives the franchise a stable controlling hand, and the dividend yield of 1.77% adds a small cushion. Still, I must be honest. Profit growth is only 0.45% on sales growth of 6.97%. That gap tells me revenue is not dropping to the bottom line; costs, provisions, or competition are eating it. With debt/equity of 10.62, this is a leveraged operation—normal for a bank, but leverage can destroy value quickly if asset quality sours. The Altman Z-score of 0.38 and EV/EBITDA of 1,598.51 are largely meaningless for a bank, so I won't treat them as red flags; ROE is the better lens. The price has fallen sharply from its ₹202 high, so Mr. Market is offering a slow-growing book at a discount. I would not call it a fast grower; it is a steady, slow compounder selling below intrinsic value. I would want to see profit growth resume before adding aggressively.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer