Jio Financial, Groww & HDB Financial Services: Hem Securities' Astha Jain shares view

Astha Jain, Senior Research Analyst at Hem Securities, in a recent interaction with Business Today, shared her views on Jio Financial Services, recently listed HDB Financial Services and fintech platform Groww.

On Jio Financial Services Ltd, Jain said that despite the company reporting strong numbers, including healthy growth in assets under management (AUM), the stock has not seen a similar performance on the bourses. She attributed this largely to valuations.

According to her, Jio Financial is trading at higher price-to-book (P/B) multiples compared with industry peers and averages, making the stock look expensive at current levels.

Commenting on HDB Financial Services Ltd, Jain highlighted the company's ability to maintain strong return ratios. She pointed out that the firm has been delivering return on equity (RoE) of around 14 per cent and return on assets (RoA) of about 2.5 per cent.

Jain said the stock is trading in line with industry peers such as Bajaj Finance Ltd and Shriram Finance Ltd. She believes there could be upside potential in HDB Financial and said the stock is well placed to move above Rs 800 level. Jain pegged near-term targets in the range of Rs 810 to Rs 840.

On Billionbrains Garage Ventures, the parent company of fintech platform Groww, Jain said the company continues to look strong. She highlighted Groww's consistent market share gains across both equity and derivatives segments, along with strong contributions from newly launched products.

Jain noted that these factors have supported positive momentum in the stock price as well. She said Groww remains well positioned for further upside, with a potential target range of Rs 195 to Rs 200. Based on this outlook, she recommended a 'buy-on-dips' strategy for the stock.