Stock in focus today: Jio Financial Services Q3FY25; Jefferies highlights growth in AUM, insurance, and payments

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).

Advertisement

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.