Jio Financial shares down 25% year-to-date; is this the right time to enter?

On Friday, Jio Financial Services Ltd shares were last seen trading 0.86 per cent lower at Rs 229.60. At this price, the stock has corrected 24.60 per cent in the calendar year 2025 so far. It logged heavy volume today as around 30.11 lakh shares changed hands at the time of writing this story. The figure was higher than the two-week average volume of 13.79 lakh shares.

Turnover on the counter came at Rs 69.17 crore, commanding a market capitalisation (m-cap) of Rs 1,45,868.13 crore. In terms of market depth, there were 16.17 lakh shares against buy orders of 1.78 shares.

A market expert said Jio Financial's price-to-book (P/B) value is attractive, adding that this is the right time to enter the stock. "This is the right time to buy Jio Financial. The decline in its share price is unwarranted as the price-to-book (P/B) value is attractive. The company has kept the platform ready for almost all the major domains of financial services. So, I think this is now time for Jio Financial to start delivering on the business front. Therefore, I believe this is the correct time to enter the counter fundamentally," G Chokkalingam, Founder and MD of market research firm Equinomics Research, told Business Today.

"The company provides a comprehensive suite of digital financial services through its digital platform. It is focusing on driving loan book growth through internal synergies and partnerships within the Jio ecosystem. The management remains focused on maintaining a strong cost-to-income ratio," said Bigul CEO Atul Parakh.

On technical setup, support on the counter could be seen in the Rs 225-215 zone. That said, a decisive close above Rs 240 is required for further upside.

"The stock has picked up well indicating a pullback from the bottom made near the Rs 200. Currently, it has resistance near Rs 241 and a decisive breach is necessary to anticipate a further rise in the coming days, expecting targets of Rs 254-265. The near-term support would be positioned near Rs 215 zone which needs to be sustained," said Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher.

"Immediate resistance will be at Rs 240 and a decisive close above the said level is needed for further upside. Support will be at Rs 225," said Ravi Singh, Senior Vice-President of Retail Research at Religare Broking.

Technically, the counter traded higher than the 5-day, 10-, 20-day and 30-day simple moving averages (SMAs) but lower than the 50-day, 100-, 150-day and 200-day SMAs. Its 14-day relative strength index (RSI) came at 50.94. 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 277.87 against a price-to-book (P/B) value of 5.93. Earnings per share (EPS) stood at 0.83 with a return on equity (RoE) of 2.13. According to Trendlyne data, JFS has a one-year beta of 1.4, indicating high volatility.

As of December 2024, promoters held a 47.12 per cent stake in the company.