Shares of Jio Financial Services Ltd (JFSL) on Tuesday plunged 5.67 per cent to close at Rs 260.15. At this closing value, the stock has corrected 34.08 per cent from its all-time high level of Rs 394.70, seen on April 23 last year. It registered high trading volume as around 27.97 lakh shares changed hands. The figure was higher than the two-week average volume of 15.30 lakh shares. Turnover on the counter came at Rs 74.52 crore, commanding a market capitalisation (m-cap) of Rs 1,65,276.98 crore.
Today’s fall came even as the financial services firm said its joint venture (JV) with global asset management giant BlackRock (Jio BlackRock Investment Advisers Private Ltd) has incorporated a wholly-owned subsidiary — Jio BlackRock Broking Private Ltd — to enter the broking business.
On the earnings front, JFSL posted a marginal 0.32 per cent rise in its consolidated net profit for the December 2024 quarter. In Q3 FY25, profit came at Rs 294.78 crore as against Rs 293.82 crore in the year-ago period. Revenue from operations climbed 5.98 per cent to Rs 438.35 crore in Q3 FY25 from Rs 413.61 crore in the corresponding period last fiscal.
Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, underscored that Jio Financial has a good futuristic view, adding investors with a long-term view can hold on to the stock. JFSL’s businesses are currently in the execution stage, he further stated.
Technically, support on the counter could be seen in the Rs 260-250 levels. The near-term trading range is likely between Rs 260 and Rs 300.
Osho Krishan, Senior Research Analyst – Technical & Derivatives at Angel One, said, “Jio Financial has seen a decent correction. The technical parameters have plunged to the oversold terrain without showing any sign of relief in the near term. For now, the zone of Rs 260-250 is likely to cushion any shortcomings, while a decisive move beyond Rs 300 could only trigger fresh momentum in the counter.”
Jigar S Patel, Senior Manager – Technical Research Analyst at Anand Rathi, said, “Immediate support will be at Rs 260 and resistance Rs 282. A decisive move above Rs 282 level may trigger a further upside towards Rs 300. The expected trading range will be between Rs 260 and Rs 300 for the short term.”
The counter traded lower than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The counter’s 14-day relative strength index (RSI) came at 26.25. 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 330.90 against a price-to-book (P/B) value of 7.06. Earnings per share (EPS) stood at 0.83 with a return on equity (RoE) of 2.13.
As of December 2024, promoters held a 47.12 per cent stake in the company.
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