Jio Financial Shares Rise 1.5% Post Q4 Results and Dividend Announcement: Should You Buy or Sell.Jio Financial Services Ltd (JFSL), a key player in the Reliance Group's financial arm, witnessed a 1.5% uptick in its share price following the announcement of its Q4 FY24 results and a dividend declaration. The stock reached a new 52-week high of ₹385 on the BSE, reflecting positive investor sentiment towards the company's performance and future prospects.
Q4 FY24 Performance Highlights
JFSL recorded a combined net profit of ₹311 crore for the fourth quarter that ended in March 2024, up 5.72% from ₹294 crore for the quarter before. The company's overall revenue for the quarter increased from ₹414 crore in Q3 FY24 to ₹418 crore. While fee and commission income grew to ₹41 crore, interest income increased to ₹281 crore from ₹269 crore in the previous quarter.
Revenues increased to ₹1,854 crore from ₹42 crore in FY23, and JFSL's net profit soared to ₹1,605 crore from ₹31 crore in FY23 for the entire fiscal year.
Partnerships and Strategic Initiatives
JFSL's portfolio has been growing steadily. Recently, the company and BlackRock formed a 50:50 joint venture to launch a wealth management and broking company in India. The goal of this collaboration is to provide creative financial solutions by utilizing JFSL's local market presence and BlackRock's worldwide experience. ET Now +4
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JFSL is also concentrating on secured lending products, such as house loans, vendor financing, and loans secured by real estate. With a focus on gadgets including AirFiber, cellphones, laptops, solar panels, and EV batteries, the company is also investigating leasing services under the Device as a Service (DaaS) concept. Today's Business Plus
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JFSL is also concentrating on secured lending products, such as house loans, vendor financing, and loans secured by real estate. With a focus on gadgets including AirFiber, cellphones, laptops, solar panels, and EV batteries, the company is also investigating leasing services under the Device as a Service (DaaS) concept. Today's Business Plus
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Views of Analysts
There is confidence among analysts regarding the growth trajectory of JFSL. Arihant Capital Markets emphasized the company's strong performance in FY24, which was fueled by higher dividends, interest income, and fee-based revenue. Motilal Oswal pointed to JFSL's strategic alliances and careful strategy to assembling an unsecured loan portfolio as signs of long-term success. Today's Business
Nonetheless, some warn that the rivalry from well-established banks and NBFCs may make it difficult to penetrate secured lending categories. Nomura India underlined that scaling up in secured categories might not be simple and that developing, testing, and underwriting algorithms could take a long time.
A Look at Investor Considerations
The stock offers an alluring investment opportunity because of JFSL's solid financial performance, strategic alliances, and foray into new financial services. Potential investors should, however, take into account the level of competition and the amount of time needed for new businesses to develop. As always, it's best to speak with a financial advisor to be sure that investing choices fit personal risk tolerances and financial objectives.
Disclaimer: This material is not intended to be investment advice; rather, it is purely informative. Before choosing an investment, investors should either do their own research or speak with a financial counselor.
Disclaimer: This material is not intended to be investment advice; rather, it is purely informative. Before choosing an investment, investors should either do their own research or speak with a financial counselor.