The price of Jio Financial's shares fell 4.3% during intraday trading today, setting a new record on the BSE. Today, Jio Financial's stock fell below the Rs 200 threshold for the first time ever, hitting an all-time low of Rs 198.6 per share.
The Reliance Group company has been declining for a while now. It went public on the stock exchanges in August 2023 at a price of Rs 265 per share on the BSE.
The stock of Jio Financial has plummeted by 10.99% in the last month, 36.18% in the last three months, and 32.64% in the last year. In contrast, the benchmark BSE Sensex index has increased 1.8% over the past 12 months.
A strong trade below the Rs198 mark could push the price of Jio Financial's shares to Rs 170.83 per share, according to Fibonacci charts. According to Fibonnaci, the next significant resistance on the upside is Rs 334.56 per share.
The Reliance Group, owned by Mukesh Ambani, includes Jio Financial Services. In collaboration with a number of foreign organizations, the financial services product company has ventured into the mutual fund, asset management, and personal loan industries.
For example, Jio Financial Services and BlackRock, a US-based company, have partnered on the MF business. The two have contributed a total of Rs 117 crore to the 50:50 partnership company.
For the asset management business, it has also teamed up with BlackRock. The business, known as "Jio BlackRock Asset Management Private Ltd," is awaiting Sebi approval to start up.
Reliance Industries Ltd.'s one-time dividend income of Rs 240.9 crore in Q2FY25 was the cause of the sequential decline.
An increase in assets under management (AUM) to Rs 4,199 crore helped Jio Financial Services perform well in Q3FY25, according to analysts. This helped to maintain interest income from loans and treasury operations.
They claimed that fee-based income from its payment services and insurance divisions supported this. The company is well-positioned to take advantage of India's expanding financial services ecosystem thanks to its partnerships, including the BlackRock mutual fund joint venture, and strategic focus on a digital-first approach.
Jio Financial Services is still in the growth and scaling stage, according to analysts at KR Choksey, even though the company has increased operations and broadened its product line to include mutual funds, insurance, and digital solutions.
It is challenging to precisely value or estimate earnings at this time due to ongoing investments, regulatory approvals, and operational ramp-up efforts. According to a Q3 result review report, "Earnings volatility and an uncertain near-term outlook necessitate a more cautious approach, even though the company's long-term prospects appear promising."
The brokerage, however, valued the stock at Rs 286, using a P/BV multiple of 1.7x. The stock has a rating of 'Hold'.
At the end of December 2024, Mukesh Ambani, Neeta Ambani, Isha Ambani, Akash Ambani, and Anant Ambani each owned 0.13 percent of the company. The 'Promoter Group', as a shareholder segment, owned 47.2% of Jio Financial Services, including shares from various LLPs.
Among public shareholders, mutual funds held 5.13 percent, LIC held 6.13 percent, foreign portfolio investors held 15.5 percent, and resident individuals (holding nominal share capital up to Rs 2 lakhs) held 17.09 percent.
