
Jefferies has shared its analysis on Jio Financial Services, highlighting balanced progress across verticals with limited risk exposure compared to other financial institutions. Below are the key insights:
- Profit Performance: The consolidated profit for Q3FY25 stood at ₹290 crore, flat year-on-year (YoY) but down 57% quarter-on-quarter (QoQ) due to a seasonal decline in dividend income from Reliance Industries Limited (RIL).
- Growth in AUM and User Base: The JioFinance app recorded a 14% QoQ rise in its user base. Meanwhile, assets under management (AUM) surged to ₹4,200 crore, supported by growth in housing, real estate, and other segments.
- Regulatory Advances: Jio Financial has filed for a Third-Party Application Provider (TPAP) license and is awaiting final approval for its mutual fund business, signaling its intent to expand offerings in the financial ecosystem.
- Insurance and Payments Expansion: The company’s insurance broking division now offers 54 plans, and its payment platform is ramping up operations, showcasing strong potential.
- Balanced Progress: Jefferies commended Jio Financial Services for maintaining a balanced approach, highlighting its steady progress while mitigating risks compared to other lenders and non-lending financial institutions (NLFs).
At the current market price (CMP) of ₹278.75, Jefferies emphasizes the company’s ability to sustain growth while diversifying its portfolio.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Readers are advised to consult their financial advisor before making any investment decisions.