Jio Financial Services shares hit 1-year low, slide 42% in 10 months

Extending their losing streak to the third consecutive trading session, shares of Jio Financial Services (JFSL), the financial arm of Reliance Industries, tumbled another 5% in intraday trade on Wednesday, February 12. With today’s decline, Jio Financial stock hit a new one-year low of ₹223 apiece.

Jio Financial share price has been on a losing streak since the release of its December quarter numbers on January 20, shedding 18% of its value. Zooming out, it has been in the same trend since May 2024, losing 40% of its value. From its all-time high of ₹394.70, attained in April, the stock is currently trading 42% lower.

The stock debuted with an initial listing price of ₹265 per share on the BSE and ₹262 per share on the NSE, slightly above its discovered price of ₹261.85 apiece. At current levels, it is trading 15% below from the listing price.

The company, which operates in investing and financing, insurance broking, payment banking, payment aggregator/payment gateway services, and asset management, saw its revenues rise to ₹449 crore in Q3 FY25 compared with ₹414 crore in the third quarter of the previous fiscal year.

It reported a marginal rise of 0.3% in net profit to ₹295 crore, compared to ₹294.8 crore in the corresponding period last year.

The company’s assets under management (AUM) rose to ₹4,199 crore in Q3FY25, compared to ₹1,206 crore in the preceding September quarter of FY25. The company’s digital footprint grew in the December quarter, with an average of 7.4 million monthly active users (MAUs) across all its digital platforms, as per the company’s earnings filing.

Jio Financial and BlackRock have agreed to form a joint venture (JV) to enter the asset management industry and have filed for final approval. In mid-October, the joint venture company applied to the Securities and Exchange Board of India (SEBI) to start a mutual fund (MF) business.

Jio Financial: Analysts lower target multiples

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, said domestic brokerage house KRChoksey.

Although the company’s long-term prospects remain strong, the brokerage highlighted concerns over earnings volatility and an uncertain near-term outlook, warranting a cautious stance. Therefore, it trimmed its target price on the stock to ₹286 from ₹345, while maintaining a ‘hold’ rating.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.