Jio Financial shares up 15% in a month; here's what analysts have to say

Shares of Jio Financial Services Ltd saw a minor uptick in Thursday's trade, trading 0.17 per cent higher at Rs 230.25. At this price, the stock has moved up 14.58 per cent in the past one month.

The company recently said it has been allotted 8.50 crore equity shares of Jio Payments Bank Ltd (JPBL) for Rs 85 crore. Before this, Jio Financial announced the acquisition of 7.9 crore shares of JPBL from the State Bank of India (SBI) for Rs 104.5 crore. In a separate development, the company has been allotted around 1,74 crore equity shares of wholly-owned subsidiary Jio Finance Ltd (JFL) for cash Rs 1,000.24 crore.

A technical analyst said the stock looked "slightly bearish" on charts while another suggested that it remains a strong 'buy-on-dip' candidate.

"Jio Financials is slightly bearish on daily charts with strong resistance at Rs 236. A daily close below the support of Rs 221 could lead to a target downward target of Rs 200 in the near term," said Sebi-registered research analyst AR Ramachandran.

"Support will be at Rs 220 and resistance at Rs 236. A decisive move above Rs 236 level may trigger a further upside towards Rs 250. The expected trading range will be between Rs 220 and Rs 250 for the short term, said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi.

"Jio Financial remains a strong 'buy-on-dip' candidate, with Rs 235 being a crucial resistance for further upside traction. However, the stock remains in a broader downtrend and the view will be negated if it falls below Rs 205, which may trigger renewed selling pressure," said Ameya Ranadive, CMT, CFTe & Senior Technical Analyst at StoxBox.

The scrip 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 51.89. A level below 30 is defined as oversold while a value above 70 is considered overbought.

As per BSE, the stock has a price-to-equity (P/E) ratio of 275.77 against a price-to-book (P/B) value of 5.88. Earnings per share (EPS) stood at 0.83 with a return on equity (RoE) of 2.13. According to Trendlyne data, Jio Financial has a one-year beta of 1.3, indicating high volatility.

As of December 2024, promoters held a 47.12 per cent stake in the Reliance Industries-backed entity.