Jio Financial Services share price jumped more than 14% to hit a record high intraday on Friday, extending the rally for the fifth consecutive session. Jio Financial shares surged as much as 14.50% to hit a record high of ₹347 apiece on the BSE.
Jio Financial Services shares have rallied more than 48% in the past three months and over 40% on a year-to-date (YTD) basis, with its market capitalization crossing ₹2 lakh crore.
The demerged entity of Reliance Industries Ltd (RIL), Jio Financial Services was listed on the stock exchanges on August 21, 2023.
Meanwhile, Reliance Industries share price also gained 0.9% to hit a record high of ₹2,989.40 apiece on the BSE, with a market cap of more than ₹20.1 lakh crore.
The non-banking finance company (NBFC) operates its financial services business through its consumer-facing subsidiaries, namely Jio Finance Limited (JFL), Jio Insurance Broking Limited (JIBL), and Jio Payment Solutions Limited (JPSL), and a joint venture, namely Jio Payments Bank Limited (JPBL).
The company has partnered with the world’s largest asset manager BlackRock to set up an asset management company with a combined investment of $300 million.
What technical charts say?
In the weekly time frame, the stock has experienced a “multiple resistance” breakout in the range of ₹268–270 levels. Huge volumes at this rally signify increased participation.
“The weekly Bollinger band buy signal shows increased momentum. The stock is well placed above its 20, 50, and 100-day SMA, and these averages are inching up along with the price rise,” said Rajesh Palviya, SVP – Technical and Derivatives Research, Axis Securities.
He advises investors to buy, hold, and accumulate this stock with an expected upside of ₹330–365 with a downside support zone of ₹290–280 levels.
Fundamentals
The rally in Jio Financial shares can be attributed to several key factors.
“Firstly, strong financial performance and consistent revenue growth have instilled confidence among investors, driving demand for the stock. Secondly, the company’s aggressive expansion plans, particularly in digital financial services, have positioned it favorably amidst India’s rapidly growing digital economy,” said Sonam Srivastava, Founder and Fund Manager at Wright Research.
Additionally, the backing of Reliance Jio provides financial resources and a large customer base, further bolstering investor sentiment.
She believes Jio Financials’ stock price may experience some volatility in the short term due to market fluctuations and profit booking. However, the company’s strong fundamentals and growth potential suggest a cautiously optimistic outlook.
“As for the long term, Jio Financials is well-positioned to capitalize on the growing digital financial services market in India, potentially leading to sustained growth and increased shareholder value over time,” said Srivastava.
In the quarter ended December 2023, Jio Financial Services reported a consolidated net profit of ₹293.82 crore, registering a fall of 56% from ₹668.18 crore in the previous quarter (Q2FY24).
The company’s consolidated revenue from operations in Q3FY24 slumped 32% on sequential basis to ₹413.61 crore from ₹608.04 crore.
On Friday, Jio Finance shares ended 10.54% higher at ₹335.00 apiece on the BSE.