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Published: October 16, 2024
Updated: October 16, 2024

Jio Financial Services Surges 41% YTD: Q2 Results and Potential BlackRock Joint Venture in Focus

Stock Performance Overview

Jio Financial Services (JFS) has seen a remarkable rise of 40.75% year-to-date (YTD) in 2024, far surpassing the 12.02% gain of the benchmark BSE Sensex during the same period. Although the stock saw a 1.09% decline in Thursday's trading, closing at ₹330.20, its overall growth remains impressive.

Upcoming Q2 FY25 Results

JFS is set to announce its second quarter results for the financial year 2024-25 (Q2 FY25) on Friday, October 18. Investors are closely monitoring the company’s performance, as these results are expected to shed light on its financial trajectory for the rest of the year.

Potential Third Joint Venture with BlackRock

Reports suggest that JFS is in talks with US asset management firm BlackRock to form a private credit joint venture. If confirmed, this would be their third collaboration. Earlier in 2024, the two companies established a 50:50 joint venture focused on wealth management and broking in India. In 2023, they also launched an asset management venture together. This potential new partnership could further strengthen JFS's position in the financial market.

Investor Sentiment and Long-Term Potential

Jio Financial’s brand strength and increasing focus on financial services in India are driving optimism among investors. The company has also received regulatory approval for its mutual fund business, positioning it for further growth in the sector. Investors with long-term perspectives are encouraged to hold on to their shares as the company continues to expand.

Technical Analysis: Key Support and Resistance Levels

Technically, JFS shares find support around ₹325-320, with resistance at ₹350. A decisive close above ₹350 could see the stock rise to ₹365 in the short term. However, if the stock falls below the ₹320 support level, it may face further technical challenges. Investors are advised to wait for the stock to confirm an upward trend before considering new positions, ideally after a close above ₹360.

Key Financial Metrics

As of June 2024, promoters held a 47.12% stake in JFS. The stock has a high price-to-equity (P/E) ratio of 686.96 and a price-to-book (P/B) value of 8.68. Earnings per share (EPS) stand at 0.49, and return on equity (RoE) is 1.26%, reflecting its current financial standing. Jio Financial Services has demonstrated impressive growth so far in 2024. Investors are eagerly awaiting the Q2 results and the potential for a new joint venture with BlackRock, which could drive future expansion. While the long-term outlook remains positive, technical indicators suggest caution, with clear support and resistance levels in place.