Understanding the Current Rating
MarketsMOJO’s rating system evaluates stocks based on a comprehensive assessment of four key parameters: Quality, Valuation, Financial Trend, and Technicals. The Jammu & Kashmir Bank Ltd. holds a Mojo Score of 52.0, corresponding to a Hold rating. This score reflects a balanced view of the company’s prospects, suggesting that investors should maintain their current positions rather than aggressively buying or selling the stock.
Quality Assessment
As of 18 February 2026, the bank demonstrates strong lending practices, evidenced by a low Gross Non-Performing Assets (NPA) ratio of 3.00%. This indicates effective credit risk management relative to many peers in the private sector banking space. The company’s quality grade is classified as good, reflecting stable asset quality and prudent operational controls. Additionally, the bank’s net profit has exhibited robust long-term growth, expanding at an annualised rate of 69.76%, signalling strong earnings momentum over recent years.
Valuation Perspective
The Jammu & Kashmir Bank Ltd. is currently valued attractively, with a Price to Book Value ratio of 0.7. This valuation suggests the stock is trading at a discount compared to its historical averages and peer group valuations. The Return on Assets (ROA) stands at 1.2%, which, combined with the low valuation, presents a compelling case for value-oriented investors. However, the company’s Price/Earnings to Growth (PEG) ratio is relatively high at 5.4, indicating that the market may be pricing in slower future growth or higher risk factors.
Financial Trend Analysis
The financial trend for the bank is currently flat. The latest half-year data shows cash and cash equivalents at ₹6,055.05 crores, which is the lowest level recorded recently. Non-operating income constitutes 34.67% of Profit Before Tax (PBT), highlighting a significant contribution from non-core activities. While net profits have grown steadily over the long term, recent quarterly results have been largely stable without significant acceleration or decline. This flat trend suggests a period of consolidation for the bank’s financial performance.
Technical Outlook
From a technical standpoint, the stock is mildly bearish. Over the past year, the stock has delivered a return of 9.80%, with short-term fluctuations including a 1-month decline of 1.96% and a 6-month dip of 0.90%. The stock’s day change on 18 February 2026 was a modest +0.48%, indicating limited immediate momentum. The technical grade reflects cautious investor sentiment, suggesting that while the stock is not in a strong downtrend, it lacks the momentum to warrant a buy rating at this time.
Stock Performance and Shareholding
Currently, The Jammu & Kashmir Bank Ltd. is classified as a small-cap stock within the private sector banking segment. The majority shareholders remain the promoters, maintaining significant control over the company’s strategic direction. The stock’s performance over various time frames shows mixed results: a slight positive return year-to-date of 4.79%, but modest declines in the medium term. This performance aligns with the Hold rating, indicating a neutral stance for investors seeking stability rather than aggressive growth.
What the Hold Rating Means for Investors
A Hold rating from MarketsMOJO suggests that investors should maintain their current holdings without initiating new positions or liquidating existing ones. The rating reflects a balanced risk-reward profile where the company’s strengths in quality and valuation are offset by flat financial trends and cautious technical signals. Investors should monitor upcoming quarterly results and sector developments to reassess the stock’s outlook in the near term.
Summary of Key Metrics as of 18 February 2026
- Mojo Score: 52.0 (Hold)
- Gross NPA Ratio: 3.00%
- Net Profit Growth (Annualised): 69.76%
- Price to Book Value: 0.7
- Return on Assets (ROA): 1.2%
- PEG Ratio: 5.4
- Cash and Cash Equivalents (Half Year): ₹6,055.05 crores
- Non-Operating Income as % of PBT (Quarterly): 34.67%
- Stock Returns: 1D +0.48%, 1M +2.24%, 3M -1.96%, 6M -0.90%, YTD +4.79%, 1Y +9.80%
Strong fundamentals, solid momentum, fair price – This Large Cap from the NBFC sector checks every box for our Top 1%. This should definitely be on your radar!
- - Complete fundamentals package
- - Technical momentum confirmed
- - Reasonable valuation entry
Sector and Market Context
The Jammu & Kashmir Bank Ltd. operates within the private sector banking industry, a segment characterised by intense competition and regulatory scrutiny. The bank’s ability to maintain a low NPA ratio and deliver steady profit growth is notable given the challenging macroeconomic environment. Compared to the broader banking sector, the stock’s valuation remains attractive, which may appeal to investors seeking value plays amid market volatility.
Investor Considerations
Investors should weigh the bank’s solid asset quality and attractive valuation against the flat financial trend and cautious technical outlook. The Hold rating advises a measured approach, suggesting that while the stock is not currently a strong buy candidate, it remains a viable holding for those with a medium to long-term investment horizon. Monitoring upcoming earnings releases and sector developments will be crucial to reassessing the stock’s potential.
Conclusion
The Jammu & Kashmir Bank Ltd.’s Hold rating by MarketsMOJO reflects a balanced assessment of its current fundamentals and market position as of 18 February 2026. With good quality metrics and attractive valuation tempered by flat financial trends and mild technical weakness, the stock presents a cautious opportunity for investors. Maintaining existing positions while observing future developments aligns with the prudent investment approach recommended by this rating.
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