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.
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.
Also Read: Coal India Share Price Target 2025 with 6.26% High Dividend
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.
- Support Levels:
- 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.
Best Small Cap Stocks with 100% CAGR Over the Last 5 Years
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.