Jio Financial Services to share Q3 results today; JFS stock up 9% in January

Jio Financial Services Ltd (JFS) will be reporting its December quarter results on Monday, along with a presentation to analysts on financial results of the company for the first nine months of the financial year post the board meeting.

This would be the second-ever quarterly numbers to be reported by JFS after the September quarter results, where the NBFC reported doubling of profit at Rs 668 crore led by interest and dividend income. JFS was carved out from Reliance Industries in 2023 and listed on stock exchanges on August 21 that year.

Jio Financial is a holding company and is operating financial services business through its consumer-facing subsidiaries namely Jio Finance (JFL), Jio Insurance Broking (JIBL) and Jio Payment Solutions (JPSL) and joint venture namely Jio Payments Bank. As per Sebi's latest processing status report on mutual fund applications, the application by Jio Financial and BlackRock Financial Management dated October 19, 2023, was under consideration for getting an in-principle approval. Jio Financial and BlackRock are targeting to initially invest $150 million each in the joint venture.

"Jio Financial aims to offer personalised financial products and services to cater to needs of this segment. Additionally, its partners will act as a catalyst for its growth due to the varied business interests which could assist the NBFC in running various pilot programs and customised service offerings to meet the diverse requirements of each sector," KRChoksey Shares and Securities said in a January note.

The JFS stock is up 9 per cent in January so far. KRChoksey’s target price on the stock at Rs 290 suggests a 14 per cent potential upside over Friday's closing price of Rs 255.20.

Jio Financial Services is looking to bolster financial services penetration with the acceleration of its strategy of being a digital-first financial solution firm. The NBFC would leverage strong brand equity, which could support building of a robust customer base across businesses through cross-selling, KRChoksey said while initiating coverage on the stock with a 'Buy' rating.

Jio Financial, KRChoksey said, is well-positioned to gain higher traction across all its business segments, given a strong parentage and a wide customer base of parent company.

"The diversified business model is well placed to fulfil the financial requirements of the customers. The lending demand moving towards consumption & unsecured finance and the current gap in addressing customer requirements are the strong triggers for the shift in the product mix," it said this month.

JFS' consolidated profit after tax for the September quarter climbed to Rs 668 crore from Rs 332 crore in the June quarter.

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