- Markets
- Jio Financial Service Analysis
- By Lokesh Patil
Jio Financial Services Reports Modest Profit Growth, Analysts Bullish on Future
Jio Financial Services Ltd (JFSL) witnessed a slight uptick in its net profit for the fourth quarter of fiscal year 2025 (Q4 FY25), reporting a 1.7 per cent increase to ₹316 crore compared to ₹310.6 crore in the same period last year. The company’s revenue from operations also demonstrated robust growth, climbing 18 per cent year-on-year (YoY) to ₹493.2 crore in Q4 FY25.
The financial results appear to have resonated positively with the market, as Jio Financial’s stock price resumed its upward trajectory on Monday. After a brief pause, the scrip surged by 2.64 per cent, reaching a high of ₹259.70 on the BSE. This upward movement signifies a significant recovery of 30.76 per cent from its record low of ₹198.60 observed on March 3rd of this year.
A key highlight from the earnings report was the substantial growth in Jio Financial’s assets under management (AUM). As of March 31, 2025, the company’s AUM stood at an impressive ₹10,053 crore, a remarkable increase from the ₹173 crore reported in the corresponding period last year. This exponential growth in AUM underscores the company’s expanding footprint in the financial services sector.
Several market analysts have expressed optimism regarding Jio Financial’s future performance, suggesting the stock has the potential for further appreciation. Shivangi Sarda of Motilal Oswal Financial Services advised investors to maintain their holdings, anticipating a move towards the ₹300 level. She highlighted a support level at ₹250 and recommended employing trailing stop losses to safeguard capital.
Technical analysis of the stock indicates a mixed picture. While Jio Financial’s current trading price is above its short-term simple moving averages (SMAs) of 5, 10, 20, 30, and 50 days, it remains below its longer-term SMAs of 100, 150, and 200 days. The 14-day Relative Strength Index (RSI) stands at 65.45, nearing the overbought threshold of 70 but still within a neutral zone.
In conclusion, Jio Financial Services has demonstrated modest profit growth and significant revenue expansion in its latest quarterly results. The substantial increase in its AUM highlights its growing presence in the financial landscape. While technical indicators present a nuanced view, several market experts remain optimistic about the stock’s near-term potential, projecting further upward movement. Investors will likely continue to monitor the company’s performance and market dynamics to gauge its future trajectory.
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