Shares of Jio Financial Services Ltd. (NSE: JIOFIN) saw a notable increase of ₹2.70 (1.13%), closing at ₹241.27 in early trade on April 16, 2025. This uptick indicates a resurgence of investor interest in the Reliance-backed financial services arm, particularly as the company continues to expand its non-banking financial company (NBFC) and lending ecosystem.
The previous close for Jio Financial was ₹238.57, with an opening price of ₹239.05. The day’s trading saw a high of ₹241.95 and a low of ₹237.26, bringing the current market capitalization to ₹1.54 lakh crore with a price-to-earnings (P/E) ratio of 95.27. Over the past year, the stock has fluctuated between a high of ₹394.70 and a low of ₹198.65.
Several factors are driving today’s gain in Jio Financial. Firstly, steady institutional buying by foreign institutional investors (FII) and domestic institutional investors (DII) has picked up, signaling longer-term confidence in the stock. Secondly, as the digital finance backbone of Reliance Industries, Jio Financial is garnering attention for its future potential in lending, insurance, and fintech markets. Despite its high P/E ratio, investors remain optimistic about the company’s expansion into underserved financial markets in India.
Technical analysts are also observing positive momentum around the ₹240 mark, with immediate resistance identified at ₹242, followed by ₹248. The stock's intraday structure is showing higher lows, suggesting a bullish bias unless it breaks down below ₹237. A breakout above ₹242 could potentially lead to a sharp short-term rally, while a close below ₹237 may trigger profit-booking.
In a significant development, the Reserve Bank of India has recognized Jio Financial Services Limited (JFSL) as a Core Investment Company (CIC). This recognition comes as the Board of Directors prepares to meet on April 17, 2025, to review and approve the financial results for the quarter and year ended March 31, 2025, and to recommend a dividend on equity shares for the financial year 2024-2025. This would mark Jio Financial's first-ever dividend announcement, a milestone that could enhance investor confidence.
On April 15, 2025, Jio Financial shares ended the trading session 3.71% higher on the Bombay Stock Exchange (BSE) at ₹238.70, with a market capitalization of ₹1,51,649.49 crore. The upcoming board meeting is highly anticipated, as analysts expect the profitability of the company to increase, aided by a better cost-to-income ratio.
In addition to its financial results, Jio Finance Limited (JFL) recently announced a fully digital Loan Against Securities (LAS) product for customers. This offering allows customers to leverage their investments, including stocks and mutual funds, to secure loans at competitive interest rates. Customers can obtain loans up to ₹1 crore with interest rates starting as low as 9.99%. The loans, available through the JioFinance app, come with a maximum term of three years and no foreclosure fees.
For the third quarter ending December 2024, Jio Financial Services reported a consolidated profit of ₹295 crore, which remained constant compared to ₹294 crore during the same quarter of the previous fiscal year. However, the company saw a significant drop from the ₹689 crore net profit reported in the second quarter of the current fiscal year. Total revenues rose to ₹449 crore from ₹414 crore year-over-year, while total costs increased to ₹131 crore from ₹99 crore in the same period last year.
Market analysts are optimistic about Jio Financial's stock performance moving forward. Kunal Kamble, a Senior Technical Research Analyst at Bonanza Group, noted the stock's recent breakout above key resistance levels, indicating a positive setup. Analysts anticipate the stock could reach ₹265-270 in the near term, with ₹255 identified as the next resistance level. Should the stock close above ₹239, it could lead to a target of ₹267.
Osho Krishan, a Senior Analyst at Angel One, remarked on the strong consolidation within the range of ₹230-210, suggesting that the stock is establishing a solid support base. He pointed out that Jio Financial has surpassed the 21-day and 50-day exponential moving averages, reflecting a robust technical outlook. The resistance level at ₹250 presents a challenge, but a definitive breakout above this level could generate fresh momentum, potentially propelling the stock toward the ₹265-270 range.
As Jio Financial Services prepares for its upcoming board meeting, investor sentiment appears to be on the rise, reflecting confidence in the company’s financial stability and growth trajectory. The stock's recent performance, combined with the anticipation of a dividend and continued institutional interest, positions Jio Financial as a key player in the evolving landscape of digital finance in India.
In summary, Jio Financial Services is navigating a pivotal moment as it prepares to announce its first dividend while continuing to attract investor interest. With a focus on expanding its lending and financial services, the company is poised for potential growth in the coming months.
