Jio Financial Services Share Performance and Joint Ventures with BlackRock Under Scrutiny

Shares of Jio Financial Services have experienced substantial growth throughout the year 2024, showing a 40.75 per cent increase on a year-to-date (YTD) basis. This rise is contrasted with a 12.02 per cent gain in the benchmark BSE Sensex during the same timeframe. However, recently, shares observed a marginal decline, dropping 1.09 per cent to Rs 330.20 in Thursday’s trading session.

The company is expected to declare its second quarter results for the fiscal year 2024-25 on Friday, October 18. In parallel, discussions are reportedly ongoing between BlackRock, an American asset management firm, and Mukesh Ambani‘s Reliance Group, which owns Jio Financial Services. Bloomberg News, citing unnamed sources, reported that these discussions revolve around forming a private credit joint venture, although Business Today has not independently confirmed these details.

If realized, this joint venture would represent the third collaboration between BlackRock and Jio Financial Services. Earlier collaborations include a 50:50 joint venture for wealth management and broking services in India, established in April 2024, and an asset management venture launched in 2023.

According to Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, Jio Financial has received approval from the regulator for its mutual fund business. Bathini highlighted the company’s strong brand presence and anticipated future performance as reasons for holding the stock long-term. Meanwhile, the Securities and Exchange Board of India (Sebi) has granted in-principle approval for Jio Financial and BlackRock to operate as co-sponsors in the proposed mutual fund.

Technical analysis by Jigar S Patel, Senior Manager at Anand Rathi, suggests that the stock’s support level is in the Rs 325-320 range, with resistance pegged at Rs 350. Achieving a decisive close above Rs 350 could signal further upward momentum towards Rs 365. Osho Krishan, a Senior Research Analyst at Angel One, indicates that a breakthrough above Rs 345-350 is crucial for restoring positive momentum.

Technical Analyst Kushal Gandhi of StoxBox advises cautious engagement with the stock, recommending new positions be held off until it decisively closes above Rs 360, confirming an upward trend.

As of June 2024, promoters held a 47.12 per cent stake in Jio Financial Services, classified as a non-banking finance company (NBFC). The company’s stock reflects a price-to-equity (P/E) ratio of 686.96 and a price-to-book (P/B) value of 8.68, with earnings per share (EPS) at 0.49 and a return on equity (RoE) of 1.26.

The information herein is intended for informational purposes and does not constitute investment advice. Readers are encouraged to seek advice from a qualified financial advisor before making investment decisions.