Shares of Jio Financial Services Ltd (JFS) surged by 6% on Monday, anticipating positive outcomes from its upcoming Q3 results scheduled for later in the day. The stock reached a high of Rs 269.60 on the BSE, marking a year-to-date gain of approximately 14.45%.
Jio Financial Services, the demerged entity of Reliance Industries Ltd, operates as a holding company with a focus on financial services through its consumer-facing subsidiaries, including Jio Payment Solutions (JPSL), Jio Insurance Broking (JIBL), and Jio Finance (JFL). It also has a joint venture named Jio Payments Bank.
Having made its stock market debut on August 21, 2023, JFS is about to disclose its second-ever quarterly results. In the preceding September quarter, the company reported a doubling of profits at Rs 668 crore, primarily driven by interest and dividend income.
According to the latest processing status report from the Securities and Exchange Board of India (SEBI), Jio Financial and BlackRock Financial Management submitted a mutual fund application on October 19, 2023, which is currently under consideration for in-principle approval. Both entities are aiming to invest an initial amount of $150 million each in their joint venture.
KRChoksey Shares and Securities, in a note from January, highlighted Jio Financial’s goal to provide personalized financial products and services, tailoring solutions to the specific needs of its target market. The company is expected to benefit from its partnerships, acting as catalysts for growth due to their diverse business interests. This strategic approach positions JFS to run pilot programs and offer customized services tailored to the unique requirements of various sectors.
Expressing confidence in JFS’s growth strategy, KRChoksey initiated coverage on the stock with a ‘Buy’ rating and set a target of Rs 290, emphasizing the company’s digital-first approach and leveraging its strong brand equity to build a robust customer base through cross-selling.
