Buy JIO Financial Services; target of Rs 320: Motilal Oswal

Buy

Motilal Oswal's research report on JIO Financial Services

Jio Financial Services (JIOFIN) is being architected as a diversified, technologyled financial services platform, aiming to operate across lending, payments, asset management, wealth management, insurance manufacturing and broking, and other digital financial services, while leveraging the unparalleled distribution and data ecosystem of the Reliance group. The core investment thesis for JIOFIN centers on its ecosystem-led operating advantage, leveraging Jio’s subscriber base of over 500m and the extensive retail footprint of the Reliance Group. Unlike traditional NBFCs that face high customer acquisition costs, JIOFIN benefits from a lower-cost entry into the daily digital lives of nearly half of India's population. This captive audience enables hyper-personalized credit underwriting through proprietary AI models that analyze data from telecom and retail behavior, providing a unique risk assessment edge, while operating within regulatory guardrails.

Outlook

We model consolidated PAT CAGR of 48% over FY26-28E and initiate coverage on JIOFIN with a BUY rating and TP of INR320/share (based on Mar’28E SoTP). Our SoTP does not factor in valuation from businesses, which are still in their incubation phases.

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JIO Financial Services - 1103026 - moti