Jio Financial Services shares jump 6% ahead of Q3 results; YTD gain at 14%

Shares of Jio Financial Services Ltd (JFS) climbed 6 per cent in Monday's trade, ahead of its December quarter results later in the day. The stock climbed 5.64 per cent to hit a high of Rs 269.60 on BSE. With this, the stock is up about 14.45 per cent year-to-date. 
This would be the second-ever quarterly numbers to be reported by JFS. The stock was listed on share market on August 21, 2023. For the September quarter, JFS had reported doubling of profit at Rs 668 crore led by interest and dividend income.

Jio Financial Services, the demerged arm of Reliance Industries Ltd, is a holding company, which is operating financial services business through consumer-facing subsidiaries namely Jio Payment Solutions (JPSL), Jio Insurance Broking (JIBL) and Jio Finance (JFL). It also has a joint venture (JV) namely Jio Payments Bank. As per Sebi's latest processing status report, the  mutual fund application by Jio Financial and BlackRock Financial Management dated October 19, 2023, was under consideration for getting an in-principle approval. Jio Financial and BlackRock are targeting to initially invest $150 million each in the joint venture.

"Jio Financial aims to offer personalized financial products and services to cater to needs of this segment. Additionally, its partners will act as a catalyst for its growth due to the varied business interests which could assist the NBFC in running various pilot programs and customized service offerings to meet the diverse requirements of each sector," KRChoksey Shares and Securities said in a January note.

"Jio Financial Services is looking to bolster financial services penetration with the acceleration of its strategy of being a digital-first financial solution firm. The NBFC would leverage strong brand equity, which could support building of a robust customer base across businesses through cross-selling," KRChoksey said while initiating coverage on the stock with a 'Buy' rating and a target of Rs 290.

Also read: Stock recommendations by analyst for January 15, 2024: BoI, L&T and Sonata Software

Also read: Jyoti CNC Automation allotment status out; check latest GMP ahead of Tuesday's listing