Jio Financial Services Ltd fundamental analysis highlights key financial metrics including market capitalisation of ₹2,10,421 crore, PE ratio of 133, and return on equity of 1.27% These figures reflect the company’s financial health and current market valuation.
Content:
- Jio Financial Services Ltd Overview
- Jio Financial Services Financial Results
- Jio Financial Services Financial Analysis
- Jio Financial Services Company Metrics
- Jio Financial Services Stock Performance
- Jio Financial Services Peer Comparison
- Jio Financial Services Shareholding Pattern
- Jio Financial Services Ltd History
- How To Invest In Jio Financial Services Ltd Share?
- Jio Financial Services Limited Fundamental Analysis – FAQs
Jio Financial Services Ltd Overview
Jio Financial Services Ltd is a leading digital financial services provider in India, focusing on enhancing financial inclusion through technology. As a non-deposit-taking NBFC registered with the RBI, it aims to deliver a broad range of innovative financial products.
The company has a market capitalisation of ₹3,26.502 crore and is listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Currently, the stock is trading 2.30% below its 52-week high and 134% above its 52-week low.
Jio Financial Services Financial Results
Jio Financial Services Ltd’s financial results show strong performance in FY24 with sales of ₹1,854 and a net profit of ₹1,605. This contrasts with FY22, where sales were ₹41.63 and net profit was ₹31.25.
- Revenue Trend: FY24 revenue surged to ₹1,854 from FY23’s ₹41.63, marking a significant improvement. FY22 revenue was only ₹41.63, highlighting a major growth trajectory in recent years.
- Equity and Liabilities: Equity and liability details are not provided, but FY24’s net profit of ₹1,605 and FY22’s ₹31.25 net profit indicate robust profitability, influencing the company’s equity and liability management.
- Profitability: FY24 profitability is high with an operating profit of ₹1,558 and a net profit of ₹1,605. In FY22, operating profit was ₹46.13, with a net profit of ₹31.25, showing strong improvement.
- Earnings Per Share (EPS): EPS in FY24 is ₹2.53, up from FY23’s ₹60.46 and significantly higher than FY22’s zero EPS. The variation suggests substantial changes in earnings and share performance.
- Return on Net Worth (RoNW): RoNW is not directly provided, but the net profit increase to ₹1,605 in FY24 from ₹31.25 in FY22 reflects improved returns and financial performance.
- Financial Position: FY24’s financial position is robust with sales of ₹1,854 and net profit of ₹1,605. FY22 had minimal sales and net profit of ₹31.25, indicating a marked enhancement in financial health.
Jio Financial Services Financial Analysis
| FY 24 | FY 23 | |
| Sales | 1,854 | 41.63 |
| Expenses | 295.52 | -4.5 |
| Operating Profit | 1,558 | 46.13 |
| OPM % | 84 | 111 |
| Other Income | 429.32 | 3.21 |
| EBITDA | 1,559 | 49.34 |
| Interest | 10.27 | 0 |
| Depreciation | 21.52 | 0 |
| Profit Before Tax | 1,956 | 49.34 |
| Tax % | 17.96 | 36.66 |
| Net Profit | 1,605 | 31.25 |
| EPS | 2.53 | 60.46 |
| Dividend Payout % | 0 | 7,278 |
*All values in ₹ Crores
Jio Financial Services Company Metrics
Jio Financial Services Ltd has a market cap of ₹2,10,421 crore with a current stock price of ₹331. The stock has a P/E ratio of 133, a book value of ₹219, and zero debt, reflecting a strong market position and financial stability.
- Market Cap: With a market cap of ₹2,10,421 crore, Jio Financial Services Ltd is well-positioned in the financial sector. This substantial valuation underscores the company’s significant market presence and investor confidence.
- Book Value: The book value per share is ₹219, representing the net asset value per share. This figure indicates the company’s solid asset base and financial health.
- Face Value: The face value of ₹10.0 per share is the nominal value assigned to each share, reflecting the basic accounting value used in financial reporting and calculations.
- Turnover: Asset turnover is 0.01, suggesting low efficiency in generating revenue from assets. This low ratio may indicate the need for improved asset utilization to enhance revenue performance.
- PE Ratio: The stock’s P/E ratio of 133 suggests high investor expectations and valuation relative to earnings. This high ratio may indicate perceived strong future growth potential or overvaluation.
- Debt: Jio Financial Services Ltd has zero debt, reflecting a debt-free capital structure. This financial stability reduces risk and suggests prudent financial management.
- ROE: Return on Equity (ROE) is 1.27%, indicating the company’s ability to generate profit relative to shareholders’ equity. While modest, it reflects profitability and efficient equity use.
- EBITDA Margin: With an EBITDA margin of 82.2%, the company demonstrates strong operational efficiency and profitability, retaining a significant portion of revenue as operating profit.
- Dividend Yield: The dividend yield is 0.00%, indicating that the company does not currently pay dividends. This could be due to reinvestment in growth or other financial strategies.
Jio Financial Services Stock Performance
Without data on the stock’s Compound Annual Growth Rate (CAGR), it is difficult to assess its long-term growth trajectory and performance. CAGR would provide insight into the annual growth rate of the investment over time, but the absence of this information limits a complete evaluation of its performance trends.
Jio Financial Services Peer Comparison
Jio Financial, with a market cap of ₹203,400.7 Cr., shows potential but lags behind competitors like Bajaj Finance and HDFC AMC in returns. Despite a recent drop of -9.82% over 1 year, its PEG ratio indicates moderate growth expectations.
| S.No. | Name | CMP Rs. | Mar Cap Rs.Cr. | PEG | 3mth return % | 1Yr return % | ROCE % | Div Yld % |
| 1 | Bajaj Finance | 6458.5 | 399568.64 | 0.91 | -4.28 | -7.97 | 11.93 | 0.54 |
| 2 | Bajaj Finserv | 1529.15 | 243995.49 | 1.43 | -4.19 | 3.18 | 11.72 | 0.06 |
| 3 | Jio Financial | 320.2 | 203400.7 | -9.82 | 1.55 | 0 | ||
| 4 | Cholaman.Inv.&Fn | 1344 | 112919.82 | 1.32 | 6.5 | 29.5 | 10.41 | 0.15 |
| 5 | Shriram Finance | 2895.1 | 108783.15 | 0.62 | 23.79 | 59.64 | 11.27 | 1.51 |
| 6 | Bajaj Holdings | 9390.6 | 104403 | 0.74 | 12.65 | 28.64 | 13.07 | 1.4 |
| 7 | HDFC AMC | 4144.1 | 88452.56 | 2.69 | 7.5 | 66.12 | 37.72 | 1.65 |
Jio Financial Services Shareholding Pattern
The shareholding Pattern of Jio Financial Services Ltd reveals that promoters hold 47.12% of the shares, indicating significant control. Foreign Institutional Investors (FII) own 17.55%, while Domestic Institutional Investors (DII) hold 11.89%. Retail investors and others make up 23.44%, reflecting a diverse ownership structure.
| Jun 2024 | Mar 2024 | Dec 2023 | Sept 2023 | |
| Promoters | 47.12 | 47.12 | 47.12 | 46.77 |
| FII | 17.55 | 19.45 | 19.83 | 21.58 |
| DII | 11.89 | 12.6 | 13.09 | 13.74 |
| Retail & others | 23.44 | 20.81 | 19.96 | 17.89 |
*All values in %
Jio Financial Services Ltd History
Jio Financial Services Ltd, originally incorporated as Reliance Strategic Investments Private Limited in 1999, underwent several name changes, becoming Reliance Strategic Investments Limited in 2002. The company later evolved to Jio Financial Services Limited in July 2023.
The transformation from Reliance Strategic Investments to Jio Financial Services reflects its strategic shift towards digital financial services. The rebranding aligns with the company’s focus on integrating advanced technology to enhance financial inclusion and accessibility.
Today, Jio Financial Services Ltd operates as a systemically important non-deposit-taking Non-Banking Financial Company (NBFC), registered with the Reserve Bank of India, highlighting its significant role in India’s financial sector.
How To Invest In Jio Financial Services Ltd Share?
Investing in Jio Financial Services Ltd shares is a straightforward process:
- Open a Demat Account: Start by opening a Demat and trading account with a reliable brokerage firm like Alice Blue.
- Complete KYC: Submit necessary documents for KYC verification.
- Fund Your Account: Deposit funds into your trading account.
- Buy Shares: Search for Jio Financial Services Ltd shares and place your buy order.
Jio Financial Services Limited Fundamental Analysis – FAQs
Jio Financial Services Ltd’s fundamental analysis reveals a market cap of ₹2,10,421 crore, a PE ratio of 133, no debt-to-equity ratio, and a 1.27% return on equity, indicating its financial health and market valuation.
The market cap of Jio Financial Services Ltd as of August 12, 2024, is approximately ₹2,10,421 crore. This value reflects the company’s strong market position in the Indian cement industry.
Jio Financial Services Limited is a financial services company offering a range of financial products and solutions. It operates within the Jio ecosystem, leveraging technology and digital platforms to deliver services in the banking, insurance, and investment sectors.
Jio Financial Services is owned by Reliance Industries Limited, led by Mukesh Ambani. As part of the Reliance Group, it benefits from the conglomerate’s extensive resources and strategic direction in expanding its financial services offerings.
The main shareholders of Jio Financial Services include Reliance Industries Limited, which holds a significant stake. The company’s ownership structure may also involve other institutional investors and entities within the Reliance Group, reflecting its integration into the conglomerate’s portfolio.
Jio Financial Services operates in the financial services industry, providing a range of offerings such as banking, insurance, and investment solutions. It leverages digital technology to deliver financial products and services, integrating with the broader Jio ecosystem.
To invest in Jio Financial Services Ltd shares, open a brokerage account with Alice Blue, complete KYC requirements, and place a buy order for the stock through your broker or trading platform. Monitor the stock’s performance and market conditions for informed investment decisions.
Determining if Jio Financial Services is overvalued or undervalued depends on comparing its current market valuation with financial metrics like earnings, growth prospects, and industry benchmarks. Analyzing its PE ratio, return on equity, and financial performance helps in assessing valuation.
Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.
