Shares of Jio Financial Services hit an over 11-month low at Rs 253.70 on the BSE in Thursday’s intraday trade amid heavy volumes. In the past four days, the stock price of the company has shed 9 per cent after it reported a flat consolidated profit after tax (PAT) at Rs 295 crore for the third quarter ended in December 2024 (Q3FY25). The company had earned a consolidated net profit of Rs 294 crore in the same quarter of the previous fiscal (Q3FY24).
The stock was trading at its lowest level since February 2, 2025. It has dropped 27 per cent from its previous month high of Rs 347.30 touched on December 4, 2024. It had hit a 52-week high of Rs 394.70 on April 23, 2024 and 52-week low of Rs 237.05 on January 24, 2024.
At 01:07 PM; Jio Financial Services was quoting 2 per cent lower at Rs 257.50, as compared to 0.33 per cent rise in the BSE Sensex. The average trading volumes at the counter rose 1.2 times with a combined 21.2 million equity shares changing hands on the NSE and BSE.
While PAT remained relatively stable on a year-on-year (YoY) basis, it decreased by 57.2 per cent quarter-on-quarter (QoQ) due to the base effect. Net Interest Income (NII) for Q3FY25 was Rs 205 crore, marking a decline of 21.9 per cent YoY; though it saw a 2.5 per cent increase QoQ.
Non-banking finance company (NBFC) asset under management (AUM) stood at Rs 4,199 crore as of December 31, 2024, a significant rise from Rs 1,206 crore in the previous quarter.
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Meanwhile, Jio Financial Services on Tuesday, January 21 said its joint venture (JV) with BlackRock—Jio BlackRock Investment Advisers—has incorporated a new unit to undertake broking operations. The JV’s wholly-owned subsidiary will be called Jio BlackRock Broking, which will undertake “the business of broking subject to regulatory approvals.”
Jio Financial Services, carved out from Reliance Industries, is engaged in the business of investing and financing, insurance broking, payment bank and payment aggregator and payment gateway services.
Despite Jio Financial Services ramping up its operations and expanding its product portfolio, including mutual funds, insurance, and digital solutions, the company remains in a growth and scaling phase. With ongoing investments, regulatory approvals, and operational ramp-up efforts, it is challenging to accurately value or make precise earnings estimates at this stage. While the company’s long-term prospects are promising, the volatility in earnings and the uncertain near-term outlook warrant a more cautious approach, according to analyst at KRChoksey Shares and Securities.
Based on this the brokerage firm said they reduce its P/BV multiple of 1.7x (earlier 2.0x previously) and continue to give a 20.0 per cent Holdco discount to arrive at a revised target price of Rs 286 per share (earlier Rs 345). “Currently, we value the NBFC based on its December 31, 2024, book value of Rs 216.3 per share. Consequently, we maintain a “HOLD” rating on the stock, awaiting better visibility into its financial performance as operations mature,” the brokerage firm said in result update.