Jammu & Kashmir Bank Adjusts Evaluation Amidst Strong Provisioning and Long-Term Growth Trends

Jul 22 2025 08:28 AM IST
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Jammu & Kashmir Bank has recently adjusted its evaluation, reflecting changes in technical trends. The bank is recognized for strong provisioning practices and has shown a long-term growth trajectory with a notable CAGR in net profits. Despite a flat quarterly performance, the stock has demonstrated resilience and stability in the market.
The Jammu & Kashmir Bank has recently undergone an adjustment in its evaluation, reflecting changes in its underlying technical trends. The bank operates within the private sector banking industry and has been noted for its strong provisioning practices, evidenced by a provision coverage ratio of 75.58%.

In terms of performance indicators, the bank has demonstrated a notable long-term growth trajectory, with a compound annual growth rate (CAGR) of 30.79% in net profits. This growth is complemented by a return on assets (ROA) of 1.2 and an attractive valuation characterized by a price-to-book ratio of 0.9.

Despite a flat financial performance reported for the quarter ending March 2025, where key metrics such as PBDIT and operating profit to net sales reached their lowest levels, the bank's stock has shown resilience. Over the past year, it has generated a return of 1.31%, while profits have increased by 17.8%.

The stock is currently trading at a fair value relative to its peers, indicating a stable market position.

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