Shares of Jio Financial Services Ltd continued to rise for the fourth consecutive session on Friday. The stock moved up 2.25 per cent to hit a high of Rs 224.70. At this price, it has climbed 13.14 per cent from an all-time low level of Rs 198.60, seen earlier this week on March 3.
Recently, Reliance Industries Ltd (RIL) chairperson Mukesh Ambani-led company announced acquisition of 7.9 crore shares of Jio Payments Bank from the State Bank of India (SBI) for Rs 104.5 crore. This move will result in the payments bank transitioning into a wholly-owned subsidiary of Jio Financial.
On the earnings front, the firm posted a marginal 0.32 per cent rise in its consolidated net profit for the December 2024 quarter. In Q3 FY25, profit came at Rs 294.78 crore compared to Rs 293.82 crore in the year-ago period. Revenue from operations climbed 5.98 per cent to Rs 438.35 crore in Q3 FY25 from Rs 413.61 crore in Q3 FY24.
"With a debt-free structure and high operational efficiency, the company maintains an impressive EBITDA (earnings before interest, taxes, depreciation, and amortisation) margin. However, its return on equity (ROE) remains modest," said Atul Parakh, CEO at Bigul.
"As Jio Financial expands its services, managing regulatory compliance and competition will be crucial. Its strong parentage and innovative business model position it favourably in the rapidly evolving Indian fintech landscape," Parakh also said.
Technically, an analyst suggested that the counter looked 'bullish' on daily charts.
Osho Krishan, Senior Research Analyst (Technical & Derivatives) at Angel One, said, "The price range of Rs 226-235 is expected to act as intermediate resistance, and a breakout above this level could trigger fresh momentum."
Sebi-registered research analyst AR Ramachandran said, "Jio Financial stock price is bullish on daily charts with strong support at Rs 207. A daily close above the resistance of Rs 228 could lead to an upside target of 256 in the near term."
Technically, the counter traded higher than the 5-day and 10-day simple moving averages (SMAs) but lower than the 20-day, 30-, 50-, 100-, 150-day and 200-day SMAs. The counter's 14-day relative strength index (RSI) came at 45. A level below 30 is defined as oversold while a value above 70 is considered overbought.
The stock has a price-to-equity (P/E) ratio of 263.65 against a price-to-book (P/B) value of 5.63. Earnings per share (EPS) stood at 0.83 with a return on equity (RoE) of 2.13.
As of December 2024, promoters held a 47.12 per cent stake in the company.