Jio Financial share price hits record low on Monday, dips below Rs 200 mark

Jio Financial share price hit a record low on the BSE today, falling 4.3 per cent in the intraday trade. Jio Financial share, today, hit an all-time low of Rs 198.6 per share, falling below the Rs 200-mark for the first time ever.

The Reliance Group company, which listed in the stock markets in August 2023 at Rs 265 per share on the BSE, has been on a downward trend for quite some time now.

Over the past one month, Jio Financial stock has crashed 10.99 per cent; in three months, the stock has tumbled 36.18 per cent; and in one year 32.64 per cent. By comparison, the benchmark BSE Sensex index has gained 1.8 per cent in the last one year.

As per Fibonacci charts, a decisive trade below Rs 198 level can potentially drag Jio Financial share price to Rs 170.83 per share. On the upside, the next major resistance, as per Fibonnaci, is Rs 334.56 per share.

Jio Financial Services is a part of Mukesh Ambani’s Reliance Group. The financial services product company has forayed into mutual funds, asset management, and personal loan business in partnership with various international entities.

For instance, Jio Financial Services has partnered with US-based BlackRock for the MF business. The duo has invested Rs 117 crore as capital in the 50:50 partnership firm.

It, also, has partnered with BlackRock for the asset management business. Called ‘Jio BlackRock Asset Management Private Ltd’, the company is awaiting approval from Sebi to begin operations.

That apart, Jio BlackRock Investment Advisers Private Ltd, another subsidiary of Jio Financial, has incorporated a wholly-owned subsidiary named ‘Jio BlackRock Broking Private Limited’.

In the December quarter, Jio Financial Services reported a consolidated net profit of Rs 294.8 crore as against a profit of Rs 293.8 crore reported in Q3FY24. The profit, however, was sharply lower than Rs 689.1 crore seen in Q2FY25.

Its interest income stood at Rs 210.1 crore (up 2.5 per cent Q-o-Q), driven by the expanding loan book and prudent treasury operations. Total income, meanwhile, was Rs 448.9 crore, rising 8.3 per cent year-on-year, but down 35.3 per cent quarter-on-quarter.

The sequential decline was due to the one-time dividend income of Rs 240.9c rore from Reliance Industries Ltd, recorded in Q2FY25.

According to analysts, Jio Financial Services delivered a healthy performance in Q3FY25, driven by a sharp increase in Assets Under Management (AUM) to Rs 4,199 crore, which contributed to a stable interest income from loans and treasury operations.

This, they said, was further supported by fee-based income from its insurance and payment services verticals. The company's strategic focus on a digital-first approach and partnerships, such as the BlackRock JV for mutual funds, positions it to capitalise on India's growing financial services landscape effectively.

That said, analysts at KR Choksey said that despite Jio Financial Services ramping up its operations and expanding its product portfolio, including mutual funds, insurance, and digital solutions, the company remains in a growth and scaling phase.

“With ongoing investments, regulatory approvals, and operational ramp-up efforts, it is challenging to accurately value or make precise earnings estimates at this stage. While the company’s long-term prospects are promising, the volatility in earnings and the uncertain near-term outlook warrant a more cautious approach,” they said in a Q3 result review report.

The brokerage, however, valued the stock at Rs 286, based on P/BV multiple of 1.7x. It has a ‘Hold’ rating on the stock.

At the end of December 2024, Mukesh Ambani, Neeta Ambani, Isha Ambani, Akash Ambani, and Anant Ambani, each, held 0.13 per cent stake in the company. Including the shares of various LLPs, the 'Promoter Group' as a shareholder's segment held 47.2 per cent stake in Jio Financial Services.

Among public shareholders, Mutual Funds held 5.13 per cent stake, LIC held 6.13. per cent stake, Foreign Portfolio Investors held 15.5 per cent stake, and Resident Individuals (holding nominal share capital up to Rs 2 lakhs) held 17.09 per cent stake.