Forecast

Buy or Sell: Jio Financial Share Price Target 2024, 2025, 2030, 2035 to 2050

HP Jinjholiya

24 August 2024

Today, we are going to estimate the Jio Financial Share Price Target 2024 to 2050 Long Term Prediction. Jio Financial is listed on the NSE under the symbol “JIOFIN” and on the BSE with the code “543940“. let’s analyze the future of Jio Financial shares as well, including whether it’s a good time to buy or sell them today. Additionally, we will also take into Analyst Recommendations for Jio Financial Share Price Target.

Jio Financial

Jio Financial Share Price Live

About Jio Financial

Jio Financial Services Ltd is a subsidiary of Reliance Industries Ltd, one of India’s largest conglomerates. Jio Financial aims to be a digital-first financial solution company, democratizing financial services for 1.42 billion Indians. The company’s comprehensive suite of products is aimed at meeting the diverse financial needs of customers with an ability to leapfrog traditional legacy systems and leverage new-age cloud-based solutions.

Jio Financial’s product offerings are broadly included under three segments: consumer lending, merchant lending, and micro, small, and medium enterprises (MSMEs). The portfolio is a combination of both secured and unsecured loans, giving due consideration to customer risk profile and business dynamics.

This includes providing financing options for consumer durables and devices sold through retail stores to begin with. In the medium term, Jio Financial will enhance its product suite to include secured loans.

Jio Financial is well-positioned to gain higher traction across all its business segments given its strong parentage and wide customer base of its parent company. The diversified business model is well-placed to fulfil the financial requirements of the customers. The lending demand moving towards consumption & unsecured finance and the current gap in addressing customer requirements are the strong triggers for the shift in the product mix.

 Financial of Jio Financial

Strengths–

Remarkable Revenue Growth: Jio Financial has shown an impressive leap in total revenue, skyrocketing from INR 13,544 thousand in 2021 to INR 211,900 thousand in the trailing twelve months (TTM). This growth indicates a robust business model and increasing market acceptance.

Solid Net Income: The net income has significantly improved, moving from INR 12,306 thousand in 2021 to INR 312,500 thousand in TTM. It showcases not just revenue growth but also effective cost management and profitability.

Huge Cash Reserves: With cash and cash equivalents jumping from INR 36 thousand to INR 632,300 thousand, Jio Financial is sitting on a pile of cash, which is always an excellent sign of financial health.

Strong Operating Cash Flow: The operating cash flow is robust at INR 20,549,000 thousand in TTM, suggesting the company’s core business activities are generating healthy cash flows.

Weaknesses–

Operating Expenses Concern: There’s a substantial increase in operating expenses, from INR 8,408 thousand in 2021 to INR 226,500 thousand in TTM. While growth is vital, such a sharp increase in expenses could be a concern if not managed properly.

Dip in Operating Income in the Past: The operating income was negative in 2021 (INR -5,921 thousand), indicating potential volatility or challenges in managing operational costs, although it has improved since then.

Opportunities–

Investment in Assets: The massive investment in both current and non-current assets, from total assets of INR 206,023 thousand in 2021 to a staggering INR 1,149,295,600 thousand in TTM, indicates Jio Financial is laying down the foundation for future growth and expansion.

Market Expansion: Given its strong financial position, Jio Financial has the opportunity to venture into new markets or diversify its product offerings to drive further growth.

Threats–

Market Competition: As Jio Financial grows, it will face increased competition from established players and newcomers, which could impact its market share and profit margins.

Regulatory Changes: Being in the financial sector, any regulatory changes or compliance requirements can have significant financial implications and must be navigated carefully.

An effective method for evaluating the Jio Financial share price Target is by examining research reports and analyses conducted by reputable financial institutions and brokerage firms. The latest research reports are available on Jio Financial.

Jio Financial Share Price Target

The financial services firm KRChoksey published the latest research report on Jio Financial Share Price Target, assigning a ‘buy’ rating with a share price target of Rs. 290.

Jio Financial Services recently released its financial performance for the third quarter of the financial year 2024 (Q3FY24), showcasing a mixed bag of results. The company’s Net Interest Income (NII) for the quarter stood at INR 2,691 million, marking a significant growth of 44.6% quarter-over-quarter (QoQ). This growth brings the total NII for the first nine months of FY24 (9MFY24) to INR 6,467 million.

However, not all metrics showed positive trends. The Pre-Provision Operating Profit (PPOP) experienced a sharp decline, falling to INR 3,156 million in Q3FY24 from INR 5,366 million in the preceding quarter, representing a drop of 41.2% QoQ. This decrease was largely attributed to a 65.6% reduction in non-interest income, primarily due to the absence of dividend income during the quarter. Despite this, the PPOP for 9MFY24 managed to reach INR 12,126 million.

The cost-to-income ratio, a measure of efficiency, saw a significant increase to 23.8% in Q3FY24 up from 11.7% in Q2FY24. This rise was due to lower operating income during the quarter, although the ratio for 9MFY24 was more moderate at 15.0%.

Another notable aspect of the quarter was the provisions, which stood at INR 2.4 million, in contrast to the zero provisions in Q2FY24. The Profit After Tax (PAT) for Q3FY24 was INR 2,937 million, indicating a de-growth of 56.0% QoQ. Despite this, the net profit for 9MFY24 was a robust INR 12,939 million.

We will analyze the performance of the company’s shares in recent times and provide you with a well-researched Jio Financial Share Price Target for 2024, 2025, 2030 to 2050 based on our Research knowledge and forecasting.

Jio Financial Share Price Target 2024

The minimum and maximum target prices for Jio Financial in 2024, estimated at around ₹400 and ₹450 respectively, are influenced by several key factors including current market trends, financial performance, and analyst recommendations.

Market Trends: Market trends encompass the overall direction of the financial markets, including factors such as interest rates, inflation, economic growth, and investor sentiment. Positive market trends can create a favourable environment for stock price appreciation, potentially driving Jio Financial’s share price towards the maximum target of ₹450.

Financial Performance: Jio Financial’s financial performance, including metrics like revenue growth, profitability, and cash flow, plays a significant role in determining its share price targets. Strong financial performance, reflected in robust earnings and revenue growth, can instill confidence in investors and analysts, supporting a higher target price of ₹450.

Analyst Recommendations: Analyst recommendations, based on in-depth research and analysis of the company’s fundamentals and industry dynamics, provide valuable insights into the potential future performance of Jio Financial. Positive recommendations and target price upgrades from analysts can contribute to a higher target price projection of ₹450.

Company Earnings: Jio Financial’s earnings performance, including quarterly results and annual reports, directly impacts its stock price. Strong earnings growth and consistent profitability can attract investors and drive the share price towards the maximum target of ₹450.

Market Conditions: External market conditions, such as regulatory changes, geopolitical events, and industry-specific developments, can influence stock prices. A stable and supportive market environment, coupled with favourable industry conditions, can contribute to achieving the maximum target price of ₹450 for Jio Financial.

Industry Outlook: The outlook for the financial services industry, including growth prospects, competitive landscape, and regulatory environment, can shape investor perceptions of Jio Financial’s future potential. A positive industry outlook, characterized by expanding market opportunities and favourable trends, can support a higher target price of ₹450.

Jio Financial Share Price Target 2025

Looking ahead to 2025, with potential growth opportunities and strategic initiatives, the minimum target price for Jio Financial could be projected at ₹500, while the maximum target price might reach ₹550. Continued positive financial performance and market sentiment could drive the share price towards these levels.

Jio Financial Share Price Target 2030

Taking a longer-term view towards 2030, considering the company’s expansion plans, market position, and macroeconomic factors, the minimum target price for Jio Financial could be estimated at ₹800, with the maximum target price potentially reaching ₹900. Long-term investments, technological advancements, and regulatory changes could influence these targets.

Jio Financial Share Price Target 2035

By 2035, as Jio Financial establishes itself further in the financial services sector and adapts to evolving market dynamics, the minimum target price could be anticipated at ₹1000, while the maximum target price might extend to ₹1100. Strategic partnerships, innovation, and sustainable growth strategies could drive the share price towards these levels.

Jio Financial Share Price Target 2040

Looking even further into the future, towards 2040, with continued success and market leadership, the minimum target price for Jio Financial could be projected at ₹1500, while the maximum target price could potentially reach ₹1600. Continued innovation, market dominance, and global expansion could contribute to these targets.

Jio Financial Share Price Target 2050

In the long term, by 2050, as Jio Financial solidifies its position as a key player in the financial industry, the minimum target price could be envisioned at ₹2000, with the maximum target price potentially reaching ₹2200. Continued growth, strategic acquisitions, and sustainable business practices could propel the share price towards these levels.

Peer Comparison of Jio Financial

How to Buy Jio Financial Share

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Is Jio finance good for the long term?

Oscillators: These indicators, which help in identifying the momentum and possible reversal points, present a neutral to positive stance for Jio Financial. With values for the Relative Strength Index and Stochastic %K indicating a neutral position, and the Commodity Channel Index suggesting a sell, the oscillators collectively lean towards a neutral position with hints of buying opportunity, as signalled by the Awesome Oscillator and Momentum.

Moving Averages: A more bullish sentiment is evident from the moving averages, which are crucial for understanding the trend direction and potential reversal points. The analysis includes both simple and exponential moving averages over various periods (10, 20, 30, 50, 100). Across these periods, the indicators consistently suggest a ‘Buy’ action, underlining a strong upward trend and potentially making Jio Financial an attractive investment for those looking at long-term gains.

Pivots: Pivot points are used to identify the critical support and resistance levels. The analysis provided does not explicitly outline the action based on pivots, but these points can serve as key markers for investors to watch for entering or exiting positions.

In essence, the technical analysis for Jio Financial presents a cautiously optimistic picture for long-term investors. The bullish signs from the moving averages are particularly compelling, suggesting sustained growth potential. However, the mixed signals from the oscillators advise investors to proceed with caution, keeping an eye out for any market volatility or shifts in momentum.

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I would like to remind you that I am not authorized by SEBI to provide any financial advice or recommendations. As you know, predicting share prices is not an exact science, which is why I am conducting in-depth research and utilizing various tools to forecast share prices.

Disclaimer– These Share Price Targets for “Jio Financial Share Price Target” are only provided for informational purposes. It does not constitute a recommendation to buy, sell, or hold Jio Financial stock. Investors should conduct their research and analysis and consult with financial experts before making any investment decisions— Sharedhan.com