Jio Financial Shares
Shares of Jio Financial Services Ltd (JFSL) fell 5.67% to close at Rs 260.15 on Tuesday. The fall means the stock has fallen 34.08% from its highest level of Rs 394.70 reached on April 23 last year. The stock witnessed heavy trading activity, with nearly 27.97 lakh shares traded, above the two-week average of 15.30 lakh shares. Total turnover stood at Rs 74.52 crore and the company has a market value of Rs 1,65,276.98 crore.
The fall in share price came despite JFSL announcing that its joint venture with global asset manager BlackRock, Jio BlackRock Investment Advisors Pvt Ltd, has set up a new company, Jio BlackRock Broking Pvt Ltd, to start broking business.
In its financial report, JFSL reported a marginal rise of 0.32% in its net profit for the December 2024 quarter to Rs 294.78 crore as compared to Rs 293.82 crore in the previous year. Revenue for the quarter grew 5.98% to Rs 438.35 crore as compared to Rs 413.61 crore last year.
Kranti Bathini, Director, Equity Strategy at Wealthmills Securities, mentioned that Jio Financial has strong long-term prospects and investors with a long-term outlook may want to hold the stock. He added that the company’s businesses are still in the execution stage.
On the technical side, support for the stock is seen at Rs 260-250 levels. It is expected to trade between Rs 260 and Rs 300 in the short term.
Osho Krishnan, Senior Research Analyst at Angel One, said that though the stock has seen a decent correction, it is currently in the oversold zone and there are no immediate signs of correction. They expect support in the range of Rs 260-250 and a rise above Rs 300 could signal a new upward move.
Jigar S Patel, Senior Technical Research Analyst at Anand Rathi, points out that the immediate support is at Rs 260, while resistance is at Rs 282. A rise above Rs 282 could push the stock towards Rs 300. For the short term, the stock is expected to trade between Rs 260 and Rs 300.
The stock is currently trading below its 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day and 200-day moving averages. Its 14-day Relative Strength Index (RSI) is at 26.25, which is considered oversold (below 30).
The stock has a price-to-earnings (P/E) ratio of 330.90 and a price-to-book (P/B) ratio of 7.06. Earnings per share (EPS) is 0.83, while the return on equity (ROE) is 2.13%.
As of December 2024, the company’s promoters hold 47.12% of the shares.
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