Zomato, Jio Financial likely to enter Nifty50; check stock price targets, inflows & more

Zomato and Jio Financial Services are likely to enter the Nifty50 index the upcoming index rejig, expects JM Financial. The announcement for the Nifty50 constituent changes is likely on Friday, February 21 (post market hours), while the rebalancing shall be effective from March 31, 2025.

For the March balancing, the index provider assumes an average free-float market capitalization that prevailed between the period August 1 to January 31, said JM Financial. "Based on the average free-float market capitalization, it expects inclusion of Jio Financial Services and Zomato in Nifty50, while Bharat Petroleum Corporation (BPCL) and Britannia Industries exit from the index."

JM expects inflows of $702 million with about 277 million shares exchanging hands in Zomato. Shares of Zomato have dropped about 15 per cent in 2025 so far. The brokerage is likely to see inflows of $404 million, with 153.8 million shares trading in Jio Financial. The stock has crashed nearly 25 per cent on a year-to-date (YTD) basis.

Among the exclusions, Britannia Industries and Bharat Petroleum are likely to see outflows of $260 million and $240 million with 79.7 million and 4.4 million shares being sold, respectively, expects the brokerage. Shares of BPCL have declined nearly 14 per cent in 2025 so far, while Britannia is marginally higher on YTD basis, it added.

Shares of Jio Financial Services Ltd jumped more than 3.6 per cent to Rs 228.95 on Wednesday, with a total market capitalization of Rs 1.45 lakh crore. On the other hand, it settled at Rs 234.10, rising nearly 4.85 for the day, valuing the company at Rs 2.25 lakh crore. The stocks have tanked 42 per cent and 23 per cent respectively, from their individual 52-week highs.

Despite Jio Financial Services ramping up its operations and expanding its product portfolio, including mutual funds, insurance, and digital solutions, the company remains in a growth and scaling phase, said KR Choksey. "With ongoing investments, regulatory approvals, and operational ramp-up efforts, it is challenging to accurately value or make precise earnings estimates at this stage," it said.

While the company’s long-term prospects are promising, the volatility in earnings and the uncertain near-term outlook warrant a more cautious approach, Choksey said. It has a 'hold' rating on Jio Financial Services but has slashed its target price of Rs 286 from Rs 345 earlier, awaiting better visibility into its financial performance as operations mature.

Commenting on the chart of Jio Financial Services, Anand Rathi said it has witnessed a significant correction from its peak. However, the stock is showing signs of bottoming near a strong previous support level. A bullish RSI divergence is visible on the chart, indicating a potential reversal.

"We recommend going long in the Rs 230-240 zone. The upside target is set at Rs 305, while the stop-loss should be placed at Rs 199 on a daily closing basis. This setup provides a favorable risk-reward ratio, aligning with the possibility of a trend reversal. Traders should monitor price action and volume confirmation for additional conviction before entering the trade," it added.

Blinkit dark store additions are outpacing expectations, driving faster growth while profitability may face short-term delays due to higher upfront costs for store openings, said Nuvama Institutional Equities. This bunching up of cost for dark store addition shall hurt profitability in the short-term, but shall ultimately lead to bunching up of profitability in future quarters as these stores mature, it said with a 'buy' rating and a target price of Rs 300.

HDFC Securities believe the safest way to play this execution-heavy QC space is via the leader Blinkit, given higher AOVs, take rates, and better fixed cost absorption. "We initiate coverage on Zomato with a 'reduce' rating and await a more palatable price point to become more constructive on the name, as most goodies seem priced in," added with a target price of Rs 235.

Zomato's Q3 earnings were below estimates driven by investments in Blinkit and higher employee expenses, said Macquarie. "We regard Zomato as an efficient Q-Com and Food Delivery platform, but for the shares we see limited margin of safety. We see rising competition in Q-Com denting consensus forecasts, it added with an 'underperform' rating a target price of Rs 130.