Jio Financial Services, the financial arm of Reliance Industries, has been on a consistent upward trajectory in recent months, reaching new record highs. This trend is fueled by several positive developments that have boosted investor confidence in the company.
In the previous trading session, the stock touched a new all-time high of ₹394.70 apiece, surpassing its previous record high of ₹384.85 apiece. Over the last six months, the stock has skyrocketed from ₹221 to the current value of ₹382.95, resulting in a stellar gain of 73.30%.
In February alone, the stock jumped over 25%, followed by another 14.11% in March, while in the current month, it is already up by 9%.
The company reported a stellar performance for the fiscal year ending FY24, with its consolidated net profit jumping multi-fold to ₹1,605 crore against ₹31 crore in the preceding fiscal of FY23. In standalone terms, the yearly net profit is ₹383 crore, while the quarterly PAT was ₹78 crore.
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Last week, the company announced a 50:50 joint venture with BlackRock to establish a wealth management and broking business.
This venture aims to operate in wealth management activities, initially establishing a wealth management company and later a brokerage firm in India. India’s wealth management and broking sector is witnessing significant growth, driven by the rising number of demat accounts in recent years.
AMC companies have reported impressive performance in the March quarter, reflecting the growing trend of stock investing driven by increasing disposable income and the rise in wealthy individuals.
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Projections suggest promising prospects for the wealth management industry, with expectations of a significant increase in high-net-worth individuals (HNIs) and ultra-high-net-worth individuals (UHNIs) in India.
Over the past five years, individuals with incomes exceeding Rs. 1 crore have witnessed a 15% increase, and forecasts indicate that their numbers will reach 3.40 lakhs in the next five years, contributing to the sector’s expansion.
On March 28, the stock was added to the Nifty Next 50 index. According to Nuvama, the stock could be the biggest beneficiary of the latest semi-annual adjustment exercise, potentially resulting in inflows of up to $80 million.
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Jio Financial Services Limited – formerly known as Reliance Strategic Investments Limited, the demerged financial arm of Reliance Industries, entered the stock market on August 21, 2023.
It debuted with an initial listing price of ₹265 per share on the BSE and ₹262 per share on the NSE, slightly above the discovered price of ₹261.85 apiece.
The company operates as a non-deposit-taking, non-banking financial company, specialising in retail lending, merchant lending, payments bank operations, payments solutions, and insurance broking.
Disclaimer: We advise investors to check with certified experts before making any investment decisions
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