Jio Financial Services Ltd shares on Tuesday fell 3.42 per cent to hit a low of Rs 343.10 over their previous close of Rs 355.25. The stock was last seen trading 3.19 per cent down at Rs 343.90. At this price, it has fallen 5.29 per cent in the past one month.
Today's drop in share price came after the company recorded a 5.81 per cent dip in its year-on-year (YoY) consolidated profit, at Rs 312.63 crore, during the first quarter of the ongoing financial year 2024-25 (Q1 FY25). Profit was at Rs 331.92 crore in the year-ago period (Q1 FY24).
The company's revenue from operations, however, rose 0.89 per cent to Rs 417.82 crore in Q1 FY25 from Rs 414.13 crore in the corresponding period last year.
Jio Financial also announced that it has commenced leasing AirFiber devices in June 2024. The company further highlighted that it has received a nod from Reserve Bank of India (RBI) to convert from a non-banking financial company (NBFC) to a core investment company.
Analysts largely remained positive on the counter due to Jio Financial's long-term business outlook.
"One should not look at Jio Financial from a quarterly viewpoint. It's a work in progress as far as the company built-up is concerned. From a long-term view, the current (stock) prices are very cheap to get into. One can hold it with a 2 to 3-year perspective for multibagger returns," Dharmesh Kant, Head of Equity Research at Cholamandalam Securities, told Business Today TV.
Investors with a medium- to long-term view can add this stock on dips, given the company's pedigree and long-term business outlook, said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.
On technical setup, support on the counter could be seen at Rs 335. "The stock has seen a decent correction from its lifetime high of Rs 395. The broader structure remains buoyant as it recouped some of its lost grounds. The Rs 335 zone is likely to cushion any blip, while a further correction could attract fresh shorts in the counter towards the 310-300 range on an immediate basis. On the higher end, Rs 370 is likely to act as a resistance, and a decisive breakthrough could only bring the mojo back to the counter," said Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One.
"The stock can hit an upside target of Rs 380 in the near term. Keep stop loss placed at Rs 345," said Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking.
Around 11.43 lakh shares changed hands today on BSE at the time of writing this story. The figure was lower than the two-week average volume of 15.71 lakh shares. Turnover on the counter came at Rs 39.68 crore, commanding a market capitalisation (m-cap) of Rs 2,18,552.98 crore.