All eyes are on Jio Financial Services as it will announce its December quarter results on January 15. This will be the NBFC's second-ever quarterly results announcement after its listing in August 2023.
For the July-September period, Jio Financial Services had reported a net profit of Rs 668 crore, a jump of 101 percent sequentially. Total revenue from operations increased 47 percent to Rs 608.04 crore on a quarter-on-quarter basis
Not many brokerages cover the stock as of now. KRChoksey is among the few names that has initiated coverage and has Buy rating with a target price of Rs 290 per share.
The brokerage noted that Jio Financial Services is a holding company and will operate its financial services business through its consumer-facing subsidiaries namely Jio Finance Ltd, Jio Insurance Broking Ltd, and Jio Payment Solutions Ltd (JPSL) and joint venture namely Jio Payments Bank Ltd (JPBL).
"We expect the lending business to report an AUM (assets under management) of Rs 4600 crore in FY24, with a ramp-up in the product pipeline that is in line with consumer requirements," KRChoksey analysts said in a note a week back.
The increased use of mobile apps and push towards UPI-based payments will enable Jio Financial to witness robust traction in volumes given the strong customer base of the parent group, they added.
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Apart from the aforementioned businesses, Jio Financial Services has also entered into a joint venture with global asset management company BlackRock.
In October 2023, Jio Financial Services and BlackRock Financial Management filed papers with the capital market regulator, the Securities and Exchange Board of India (SEBI), to launch mutual fund business in India. The in-principle approval is under consideration at the moment.
Jio Financial Services, formerly known as Reliance Strategic Investments, demerged from Reliance Industries and was listed as a separate entity on August 21. The stock was listed at Rs 265 apiece on the BSE and Rs 262 per share on the NSE as compared to its discovered price of Rs 261.85 apiece.
On January 12, the stock closed at Rs 254.90 on the NSE.
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