Jio Financial Services:Jio Financial Services is grabbing headlines and investor attention. Since that time, the stock has been on the move, jumpstarted by a series of big-bang-fundamental announcements that have the potential to reshape the company’s trajectory. As this price climbs ever higher, so doubts focused on the question of whether such hype is being matched by the necessary development of fundamentals. On the business side and technical side Jio Financial Services (JFSL) has been building serious momentum. With ambitious and fast-paced plans to further penetrate mutual fund and broking segments supported by robust earnings growth and increasing customer acquisition, the stock is heading for a breakout. Here’s a rundown of the main catalysts that we believe should be driving JFSL higher from current levels.
Jio Financial Services
Velocity Idea – Jio Financial Services
RECO: BUY, CMP: ₹ 302, SL: ₹ 280 (7%), TP: ₹ 345 (14%)
Target ₹345, Stop-Loss ₹280
RECO: BUY | CMP: ₹302 | SL: ₹280 (7%) | Target Price (TP): ₹345 (14%)
Key Fundamental Triggers
JV With BlackRock – Mutual Fund Entry
JFSL and global investment giant BlackRock have shored up this new mutual fund business with a 50:50 joint venture that’s already received the greenlight from SEBI.
The joint venture is being hailed as a game-changing move for the Indian asset management sector, combining Jio’s immense distribution network with BlackRock’s international.
Expansion Into Broking Services
JFSL has already incorporated full-service broking under the name Jio BlackRock Broking Pvt Ltd, underscoring its plans to foray into full-service broking.
Regulatory approvals still remain, but this vertical could pave the way for sizable cross-selling capabilities and increased customer stickiness.
Acquisition of SBI Stake in Jio Payments Bank
The Board has cleared the purchase of SBI’s balance equity in Jio Payments Bank for ₹105 crore leaving JFSL the single largest holder.
This smart play should super charge customer acquisition and engagement through better synergy between lending, savings and investment products.
AUM Growth and Customer Base Diversification
JFSL’s Assets Under Management (AUM) more than exploded to ₹10,053 crore in FY25, up from a paltry ₹173 crore in FY24.
The customer base of the company tripled in a year, to 23 lakh, illustrating its penetration into previously excluded areas, and its increasing popularity in the vast and fast-growing digital finance landscape.
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Jio Financial Services: Technical Analysis
Technically, the stock is holding strongly above its 20 days exponential moving average (20 DEMA) and is now heading towards a box breakout level of ₹307.
The main momentum indicator RSI is showing a bullish crossover, which often means the beginning of a new upward trend.
A breakout above ₹307 with good volumes can lead this stock for a rally towards our target price of ₹345, keeping a stop-loss at ₹280.
Jio Financial Services is quickly becoming a formidable financial ecosystem player, with products across payments, lending, asset management and soon, broking. Its pan-India aggressive expansion strategy, good strong promoter backing, and rapidly growing positive cash flow customer base make it a good medium-term investment. More than just a valuation exercise, the technical position underpins potential upside in line with the company’s fundamental growth narrative.