Jio Financial Services Gains 10% in a Month and Increases 3% Ahead of Q3 Earnings

Jio Financial Services

Later in the day, Jio Financial Services will release its results for the December quarter. Following its listing in August 2023, this will be the NBFC’s second quarterly earnings announcement.

Before the company’s December quarter earnings were set to be released later in the day on January 15, shares of Jio Financial Services surged by about 3 percent in the morning. Following its market listing in August 2023, this will be the non-banking financial company’s (NBFC) second quarterly results announcement.

KRChoksey Shares and Securities anticipates the loan division to report assets under management (AUM) of Rs 4,600 crore, with a ramp-up in the product pipeline. The brokerage firm began coverage on the stock with a “buy” call and a target price of Rs 290.
Given the large customer base of the parent company, Jio Financial, which was separated out of Reliance Industries, will be able to see good growth in volumes thanks to the growing use of mobile apps and the drive towards UPI-based payments, it added.

On the National Stock Exchange (NSE), Jio Financial Services was trading 2.1 percent higher at Rs 260.40 at 9:35 a.m.

As of now in January, the stock has increased by 10%. The goal price of Rs 290 set by KRChoksey indicates a 13% increase over the closing price of Rs 255.05.

Jio Financial Services is a holding company that will run its financial services division through joint venture Jio Payments Bank Ltd (JPBL) and its consumer-facing subsidiaries Jio Finance Ltd, Jio Insurance Broking Ltd, and Jio Payment Solutions Ltd (JPSL).

Jio Financial Services recorded a net profit of Rs 668 crore in the prior quarter, a sequential increase of 101%. Operating revenue as a whole climbed by 47% to Rs 608.04 crore QoQ.

The most recent processing status report on mutual fund applications from the Securities and Exchange Board of India states that the Jio Financial and BlackRock Financial Management application, dated October 19, 2023, was being considered for an in-principle approval. BlackRock and Jio Financial intend to contribute $150 million apiece to the joint venture at first.

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