Jio Financial shares drop 3% following Q1 results: here’s what analysts say

Jio Financial shares drop 3% following Q1 results: here’s what analysts say

Jio Financial’s share price dropped today following the announcement of a 5.81% decline in its consolidated profit for the first quarter of the current financial year 2024-25 (Q1 FY25). The company’s profit for this quarter stood at Rs 312.63 crore, compared to Rs 331.92 crore in the same period last year (Q1 FY24).

Today’s decline in share price follows the company’s report of a 5.81% drop in year-on-year (YoY) consolidated profit, amounting to Rs 312.63 crore for the first quarter of the financial year 2024-25 (Q1 FY25). In the same quarter of the previous financial year (Q1 FY24), the profit was Rs 331.92 crore.

However, the company’s revenue from operations increased by 0.89% to Rs 417.82 crore in Q1 FY25, compared to Rs 414.13 crore in the same period last year.

Additionally, Jio Financial announced that it started leasing AirFiber devices in June 2024. The company also mentioned that it has received approval from the Reserve Bank of India (RBI) to transition from a non-banking financial company (NBFC) to a core investment company.

Analysts generally have a positive outlook on Jio Financial’s stock due to its promising long-term prospects.

“Jio Financial shouldn’t be evaluated on a quarterly basis. The company is still in development. From a long-term perspective, the current stock prices are very attractive. Investors can hold the stock for 2 to 3 years to potentially achieve substantial returns,” Dharmesh Kant, Head of Equity Research at Cholamandalam Securities, told Business Today TV.

Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, recommended that investors with a medium- to long-term view consider adding the stock during price dips, citing the company’s strong foundation and favorable long-term outlook.

On the technical front, the stock has support at Rs 335. “After a significant correction from its peak of Rs 395, the stock’s overall structure remains positive, having regained some lost ground. The Rs 335 level is expected to provide support, but if the stock falls further, it could attract fresh short positions down to the 310-300 range. On the upside, Rs 370 will serve as resistance, and a decisive break above this level could reinvigorate the stock,” said Osho Krishan, Senior Research Analyst – Technical & Derivatives at Angel One.

“The stock is expected to reach a near-term target of Rs 380. A stop loss should be set at Rs 345,” advised Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking.

As of the time of this report, 11.43 lakh shares were traded on the BSE, which is below the two-week average volume of 15.71 lakh shares. The turnover for the stock was Rs 39.68 crore, with a market capitalization of Rs 2,18,552.98 crore.

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