Jio Financial shares: 29% upside? MOFSL sets target price post Q4 results

MOFSL retained its 'Buy' rating on Jio Financial Services Ltd despite a mixed set of March quarter results, saying credit-led scale-up continued and newer businesses ramped up. The domestic brokerage said the overall JFS profitability remained impacted by continued investments in new businesses and also due to the impact on the treasury book amid macro volatility.

Jio Financial reported a 13.88 per cent drop in net profit at Rs 272.22 YoY. MOFSL noted that NBFC segment is scaling well with its assets under management (AUM) crossing Rs 25,000 crore. Other segments, however, witnessed slower traction, it noted. 

Still, MOFSL finds a compelling long-term runway for growth, supported by the breadth of its financial services platform and multiple embedded value-creation levers. 

"While current JFS valuations reflect a part of the medium-term growth potential, we believe they do not fully capture the scale opportunity across lending, asset management, insurance, and digital financial services as these businesses transition from incubation to meaningful profitability," MOFSL said.

MOFSL said Jio Financial trades at 1 times FY27 book vaue. It has estimated a consolidated PAT growth of 50 per cent over FY26-FY28, compounded annually. 

It reiterate its 'Buy' rating on the stock with a target of Rs 315. The target, which suggests 29 per cent upside potential, does not factor in valuation from businesses like insurance manufacturing, wealth management, broking, and marketplace, which are still in their incubation phase.

JFS shares are down 17 per cent in 2026 so far. The stock is flat for the one-year period. The company's board has recommended a dividend of Re 0.60 per equity share of face value Rs 10 each for the financial year ended March 31, 2026.

MOFSL said the management indicated that treasury performance was impacted by rising yields due to the relatively large treasury book. Excluding this impact, underlying pre-provision operating profit (PPOP) growth would have been stronger, MOFSL noted the management as saying. 

"Broking is not yet fully operational at scale, but it is a key upcoming pillar within the investment ecosystem. It will likely act as a high-engagement product, improving user stickiness and increasing cross-sell opportunities across lending, AMC, and derivatives of investment products," MOFSL said.