Jio Financial Services Shares Down 18% from Record High: Is this a Opportunity to buy?

Recently, shares of Jio Financial Services Ltd have dropped, currently trading at around ₹325.45, which is 18% below their record high of ₹394.70 on April 23, 2024. This drop might be an opportunity for investors. Let’s see if it’s a good time to invest in Jio Financial Services shares.

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Jio Financial Services: Share Performance

Record High: On April 23, 2024, the share hit a record high of ₹394.70.
Current Price: It is currently trading at ₹325.45, 17.55% below its highest level.
Market Cap: The company’s market capitalization is ₹2,06,762.99 crores.
Turnover: The trading turnover is ₹29.37 crores.

Recent Achievements:

RBI Approval: Jio Payment Solutions Ltd, a subsidiary of the company, recently got approval from the Reserve Bank of India (RBI) to operate as an online payment aggregator.
Joint Venture with BlackRock: Jio Financial has announced a joint venture (JV) with BlackRock to enter India’s asset management industry.
Wealth Management Expansion: In April 2024, Jio Financial and BlackRock signed a 50:50 JV to start a wealth management and broking business in India.

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Financial Performance:

Q2 FY25 Net Profit: The company recorded a profit of ₹689 crores in the second quarter of the current fiscal year, a 3.13% increase.
Revenue Growth: The company’s revenue from operations increased by 14.06% to ₹693.50 crores, compared to ₹608.04 crores in the same quarter last year.
Promoter Holding: As of September 2024, the promoters hold a 47.12% stake in the company.

Expert Opinions:

Technical analysts suggest accumulating Jio Financial Services shares at the current level.
- Support Levels:
  - Key support level is ₹317.
  - The next support level is seen at ₹300.
- Upside Potential:
  - Near-term target: Potential gain up to ₹355.
  - Stop Loss: Set at ₹300.
Osho Krishan, Senior Research Analyst (Technical & Derivatives, Angel One): “Jio Financial shares are trading around ₹325. It can be bought at the current level, targeting ₹355, with a stop loss at ₹300.”
Religare Broking: “The share has been in a corrective phase for the past seven months. Investors can buy it for a near-future target of ₹342, with a stop loss at ₹317.”

Valuation Metrics:

P/E Ratio: 398.21
P/B Ratio: 8.42
EPS (Earnings Per Share): 0.83
ROE (Return on Equity): 2.12%

What Should Investors Do?

The recent drop gives investors a new entry point in Jio Financial Services. However, before investing, carefully analyze the company’s financial health, valuation metrics, and market conditions.

Short-term investors might find this an opportunity, while long-term investors should focus on the company’s strategic growth initiatives and JV partnerships.

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Disclaimer: Investing in the stock market is subject to market risks. Please conduct your own research or consult a financial advisor before making any investment decisions. This article aims to inform and educate investors and traders.

Disclaimer: Investing in the stock market is subject to market risks. Please do your research or consult your financial advisor before making any decisions. The information provided in this article aims to educate and inform investors and traders.