Updated 26 June 2025 at 14:49 IST
Jio Financial Services Share Price: Shares of Mukesh Ambani-led Jio Financial Services Ltd (JFSL) surged 2.75% to Rs 311.60 on Thursday, as investor sentiment turned positive after a series of key announcements and strong financial results.
The stock has been gaining steadily in recent months, delivering over a 40% return in the past three months, and has now caught market attention again.
The rally comes after the company announced the complete acquisition of Jio Payments Bank Ltd, making it a wholly-owned subsidiary. JFSL bought out State Bank of India’s 17.8% stake for Rs 104.54 crore, bringing full control of the payments bank under its umbrella.
In addition, the company has also subscribed to 19 crore new equity shares of Jio Payments Bank for Rs 190 crore, further strengthening its position in the digital finance space.
Earlier, JFSL’s mutual fund venture with BlackRock, named Jio BlackRock Mutual Fund, received final approval from the market regulator SEBI. The 50:50 joint venture with the U.S.-based asset management giant is now registered and cleared to begin operations, marking a major step in JFSL’s expansion into the Indian investment market.
Financially, Jio Financial Services reported a 2% year-on-year rise in consolidated net profit to Rs 316 crore for the March quarter of FY25, up from Rs 311 crore a year ago. Revenue grew 24% year-on-year to Rs 518 crore, while expenses also rose to Rs 168 crore.
For the full FY25, the company posted a net profit of Rs 1,612 crore, slightly up from Rs 1,604 crore in the previous fiscal.
Despite strong financials and business expansion, data from Trendlyne shows that the stock is trading at an expensive valuation. JFSL has a Durability Score of 60, indicating strong and stable financial strength, but a Valuation Score of 25, suggesting that the current P/E ratio of 122.6 may be on the higher side.
Analysts are cautious, with a "HOLD" rating and an average target price of Rs 272, indicating a potential downside of 12.6% from current levels.
However, short-term momentum remains strong. The stock has gained 10.56% in the last month and 9.63% in the past week, trading near its 52-week high of Rs 363, with a market capitalisation of Rs 1.97 lakh crore.
Disclaimer: The views expressed in this article are purely informational, and Republic Media Network does not vouch for, promote or endorse any opinions stated by any third party. Stock market and Mutual Fund investments are subject to market risks, and readers are advised to seek expert advice before investing in stocks, derivatives and Mutual Funds.
Published 26 June 2025 at 14:44 IST