Jio Financial Services Ltd's shares rose for the fourth consecutive session on Friday. The stock surged 2.25 percent to a high of Rs 224.70. At this price, it has risen 13.14 percent from an all-time low of Rs 198.60 set earlier this week on March 3.
Reliance Industries Ltd (RIL), chaired by Mukesh Ambani, recently announced the acquisition of 7.9 crore shares of Jio Payments Bank from State Bank of India (SBI) for Rs 104.5 crore. This will result in the payments bank becoming a wholly-owned subsidiary of Jio Financial.
On the earnings front, the company reported a marginal 0.32 percent increase in consolidated net profit for the December 2024 quarter.
Profit for the third quarter of fiscal year 25 was Rs 294.78 crore, up from Rs 293.82 crore the previous year. Revenue from operations increased by 5.98 percent to Rs 438.35 crore in Q3 FY25 from Rs 413.61 crore in Q3 FY24.
"With a debt-free structure and high operational efficiency, the company maintains a strong EBITDA (earnings before interest, taxes, depreciation, and amortization) margin. However, its return on equity (ROE) remains modest," stated Atul Parakh, CEO of Bigul.
"As Jio Financial expands its services, managing regulatory compliance and competition will become critical. Its strong parentage and innovative business model help it stand out in the rapidly changing Indian fintech landscape," Parakh added.
Technically, an analyst stated that the counter appeared 'bullish' on daily charts.
According to Osho Krishan, Senior Research Analyst (Technical & Derivatives) at Angel One, "The price range of Rs 226-235 is expected to act as intermediate resistance, and a breakout above this level could trigger fresh momentum."
AR Ramachandran, a Sebi-registered research analyst, stated, "Jio Financial stock price is bullish on daily charts with strong support at Rs207." A daily close above the resistance of Rs228 could lead to an upside target of 256 in the near future."
Technically, the counter was below the 20-, 30-, 50-, 100-, 150-, and 200-day simple moving averages (SMAs), but above the 5- and 10-day SMAs. The 14-day relative strength index (RSI) for the counter was 45. Oversold is defined as a level below 30, and overbought is defined as a value above 70.
The stock has a price-to-book (P/B) ratio of 5.63 and a price-to-equity (P/E) ratio of 263.65. The return on equity (ROE) was 2.13 and the earnings per share (EPS) was 0.83.
Promoters held 47.12 percent of the business as of December 2024.
