Shares of Jio Financial Services were trading 1.09 per cent lower in Thursday’s trade at Rs 330.20. Despite the said drop, the stock has gained 40.75 per cent on a year-to-date (YTD) basis as against a 12.02 per cent rise in benchmark BSE Sensex during the same period.
The company is slated to declare its second quarter results for the ongoing financial year 2024-25 (Q2 FY25) on Friday, October 18. Separately, BlackRock is in talks with Mukesh Ambani-led Reliance Group firm Jio Financial to set up a private credit joint venture (JV), Bloomberg News reported citing sources. However, Business Today could not verify the information at the time of publishing this story.
If these talks materialise, then it will be the third JV between the US-based asset management firm and the Indian financial services company. Earlier in April this year, Jio Financial had signed an agreement with BlackRock to form a 50:50 joint venture (JV) for setting up a wealth management and broking business in India. Before this, the duo had launched an asset management venture in 2023.
“Jio Financial has recently received the regulator’s permission for its mutual fund business. The stock is currently in focus ahead of quarterly results. Those holding can continue to hold on to the stock with a long-term view due to the company’s pedigree and also the financialization of assets in India. Jio Financial has a strong brand reach and is going to perform well in the future,” said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities. Capital markets regulator Sebi has granted in-principle approval to Jio Fin and BlackRock to act as co-sponsors and set up the proposed mutual fund.
Technically, support on the counter could be seen in the Rs 325-320 zone. “Support will be Rs 325 and resistance Rs 350. A decisive close above Rs 350 level may trigger a further upside towards Rs 365. The expected trading range will be between Rs 320 and Rs 365 for the short term,” said Jigar S Patel, Senior Manager – Technical Research Analyst at Anand Rathi.
“Jio Fin has seen some correction in the last couple of sessions. On the level-specific front, Rs 325-320 is likely to cushion, while any further breakdown could disrupt the technical structure. On the higher end, a restoration above Rs 345-350 can only bring back positive traction in the counter,” said Osho Krishan, Senior Research Analyst – Technical & Derivatives at Angel One.
“We recommend refraining from initiating a new position in the stock until it confirms an upward trajectory, which we anticipate upon a decisive close above Rs 360 level,” said Kushal Gandhi, Technical Analyst at StoxBox.
As of June 2024, promoters held a 47.12 per cent stake in the non-banking finance company (NBFC). Jio Financial’s stock has a price-to-equity (P/E) ratio of 686.96 against a price-to-book (P/B) value of 8.68. Earnings per share (EPS) stood at 0.49 with a return on equity (RoE) of 1.26.
