Jio Financial Services Share Price: A better stock for long term investment? Market expert Gaurang Shah answers – Markets
Updated Dec 30, 2024 10:43 IST
Gaurang Shah of Geojit Financial Services gave an optimistic long-term outlook for Jio Financial Services. (Image: Shutterstock/ET NOW News)
Article Highlights
- In a recent interview with ET NOW, Gaurang Shah of Geojit Financial Services gave an optimistic long-term outlook for Jio Financial Services.
- He emphasised the need of a one-and-a-half to two-year time horizon, highlighting the slow impact of regulatory approvals and commercial operations on the ground.
- Shah urged investors to keep their shares and consider raising their investments at specific levels. He urged that new investors with a long-term vision start accumulating shares.
He emphasised the need of a one-and-a-half to two-year time horizon, highlighting the slow impact of regulatory approvals and commercial operations on the ground.
“We do have positive coverage on Jio Financial Services from a long term point of view, and we all know the history of price discovery and the performance after that. As far as the time horizon is concerned, our sense is that you need to have at least one and a half, 2 year plus of, kind of time horizon”, Gaurang Shah Geojit Financial Services, said to ET NOW.
“Reason being that, you know, as they go on getting approvals and as they start their, businesses at ground level, the contribution is likely to come in, over a longer period of time”, he told.
“So if you have that kind of a view, our advice would be to HOLD on to the stock primarily. And if case if it close closer to maybe Rs 300 or 280, if, you want to increase your investment, you can do that. And if somebody wants to do a fresh investment with a long term point of view, our advice would be to possibly start accumulating as well”, he added.
Jio Financial Services stated in a regulatory filing that total revenues grew to Rs 694 crore, up from Rs 608 crore in the same period last year. However, overall costs quadrupled to Rs 146 crore, up from Rs 71 crore in the same period the previous year.
Jio Financial Services Company Details
Jio Financial Services, which was spun off from Reliance Industries Ltd, is in the industry of investing and finance, insurance broking, payment banks and aggregators, and payment gateway services.
In July, its subsidiary Jio Finance Ltd offered a house loan product as well as a mutual fund loan.
Jio Financial Services and BlackRock Inc. announced in October the formation of two joint venture companies: Jio BlackRock Asset Management Private Limited and Jio BlackRock Trustee Private Limited.
Jio Financial has invested Rs 82.9 crore for a 50% interest in each entity, with Rs 82.5 crore going to Jio BlackRock Asset Management and Rs 40 lakh to Jio BlackRock Trustee respectively.
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