Is Jio Financial overvalued or undervalued?

As of October 18, 2023, Jio Financial is considered very expensive and overvalued with a PE ratio of 115.81 and an EV to EBITDA ratio of 120.56, significantly higher than its peers, despite a recent stock return of 21.32%.

As of 18 October 2023, Jio Financial's valuation grade has moved from does not qualify to very expensive, indicating a significant shift in its perceived market value. The company is currently considered overvalued, with a PE ratio of 115.81, an EV to EBITDA ratio of 120.56, and a ROE of just 1.31%. These ratios starkly contrast with peers such as Life Insurance, which has a PE ratio of 12.54 and an EV to EBITDA of 9.89, suggesting that Jio Financial's valuation is not justified by its earnings or operational performance.<BR><BR>In comparison to other firms in the sector, Bajaj Finance Ltd. is also categorized as very expensive with a PE ratio of 35.01, yet it is still significantly lower than Jio Financial's metrics. Additionally, SBI Life Insurance Co. Ltd. stands out as very attractive with a PE of 74.03, further emphasizing the overvaluation of Jio Financial. Despite a recent stock return of 21.32% over the past month, which outperformed the Sensex's 3.80%, the overall valuation metrics indicate that Jio Financial is not a sound investment at its current price of 301.00.

What does Jio Financial do?

Jio Financial Services Ltd is a Non-Banking Financial Company (NBFC) that reported net sales of ₹493 Cr and a net profit of ₹316 Cr for the quarter ending March 2025, with a market cap of ₹186,755 Cr. The company has a P/E ratio of 115.00 and a debt-equity ratio of 0.03.

Overview:<BR>Jio Financial Services Ltd operates as a Non Banking Financial Company (NBFC) within the large-cap market segment.<BR><BR>History:<BR>The company was incorporated in 1999 as Reliance Strategic Investments Private Limited and later converted to a public limited company, renaming itself Reliance Strategic Investments Limited in 2002. The latest quarterly results reported net sales and net profit for the period ending March 2025.<BR><BR>Financial Snapshot:<BR>- Net Sales: 493 Cr (Quarterly Results - Mar 2025)<BR>- Net Profit: 316 Cr (Quarterly Results - Mar 2025)<BR>- Market Cap: Rs 186,755 Cr (Large Cap)<BR><BR>Key Metrics:<BR>- P/E: 115.00<BR>- Industry P/E: 23<BR>- Dividend Yield: 0.00%<BR>- Debt-Equity: 0.03<BR>- Return on Equity: 1.31%<BR>- Price to Book: 1.50<BR><BR>Contact Details:<BR>Registrar Address: Not available.

Has Jio Financial declared dividend?

No Dividend History Available

Who are the peers of the Jio Financial?

Jio Financial's peers include Bajaj Finance, Cholaman.Inv.&Fn, Shriram Finance, Muthoot Finance, SBI Cards, Aditya Birla Cap, HDB FINANC SER, Sundaram Finance, and L&T Finance Ltd. Jio Financial has average management risk and growth, with a 1-year return of -7.16%, the lowest among its peers.

Peers: The peers of Jio Financial are Bajaj Finance, Cholaman.Inv.&Fn, Shriram Finance, Muthoot Finance, SBI Cards, Aditya Birla Cap, HDB FINANC SER, Sundaram Finance, and L&T Finance Ltd.<BR><BR>Quality Snapshot: Excellent management risk is observed at Bajaj Finance, Cholaman.Inv.&Fn, Muthoot Finance, SBI Cards, and the rest. Good management risk is found at Shriram Finance, Aditya Birla Cap, and Sundaram Finance, while Average management risk is present at Jio Financial, HDB FINANC SER, and L&T Finance Ltd. For growth, Excellent growth is noted at Jio Financial and Authum Invest., Good growth is seen at Bajaj Finance, Cholaman.Inv.&Fn, Shriram Finance, and the rest, while Average growth is found at Muthoot Finance, SBI Cards, Aditya Birla Cap, and Sundaram Finance, and Below Average growth is observed at HDB FINANC SER and L&T Finance Ltd. Capital Structure is Excellent for Bajaj Finance, Jio Financial, Muthoot Finance, SBI Cards, Sundaram Finance, and L&T Finance Ltd, Good for Cholaman.Inv.&Fn and HDB FINANC SER, and Good for Shriram Finance.<BR><BR>Return Snapshot: The peer with the highest 1-year return is Authum Invest. at 153.88%, while Jio Financial has the lowest at -7.16%. Jio Financial's return is significantly lower than all peers. Additionally, HDB FINANC SER has no available data for its six-month return.

Who are in the management team of Jio Financial?

As of March 2022, the management team of Jio Financial includes K V Kamath (Chairman), along with several independent and non-executive directors, such as Sunil Mehta, Bimal Manu Tanna, and Isha Mukesh Ambani, among others, providing governance and strategic direction.

As of March 2022, the management team of Jio Financial includes the following individuals:<BR><BR>1. K V Kamath - Chairman & Independent Director<BR>2. Sunil Mehta - Independent Director<BR>3. Bimal Manu Tanna - Independent Director<BR>4. Sethuraman Kandasamy - Non-Executive Director<BR>5. Jagannath Kumar Venkata Gollapalli - Non-Executive Director<BR>6. Jayashri Rajesh - Non-Executive Director<BR>7. Rajiv Mehrishi - Independent Director<BR>8. Isha Mukesh Ambani - Non-Executive & Non-Independent Director<BR>9. Anshuman Thakur - Non-Executive & Non-Independent Director<BR><BR>This team comprises a mix of independent and non-executive directors, contributing to the governance and strategic direction of the company.

Who are the top shareholders of the Jio Financial?

The top shareholders of Jio Financial include Srichakra Commercials LLP with 11.64%, mutual funds with 6.58%, foreign institutional investors at 11.66%, and the Life Insurance Corporation of India holding 6.13%, while individual investors own 22.39% of the shares.

The top shareholders of Jio Financial include several key players. The majority of the shares are held by promoters, with Srichakra Commercials LLP being the promoter with the highest holding at 11.64%. Additionally, mutual funds collectively hold 6.58% of the shares through 42 schemes, while foreign institutional investors (FIIs) account for 11.66% with 680 FIIs involved. The highest public shareholder is the Life Insurance Corporation of India, which holds 6.13%. Individual investors also have a significant presence, owning 22.39% of the shares.

How big is Jio Financial?

As of 24th July, Jio Financial Services Ltd has a market capitalization of 200,319.00 Cr, with recent net sales of 2,237.55 Cr and a net profit of 1,624.62 Cr. Shareholder's funds are 1,39,147.66 Cr and total assets are 1,44,862.76 Cr as of March 2024.

As of 24th July, Jio Financial Services Ltd has a market capitalization of 200,319.00 Cr and is classified as a Large Cap company.<BR><BR>In the latest four quarters, Jio Financial reported Net Sales of 2,237.55 Cr and a Net Profit of 1,624.62 Cr.<BR><BR>The latest annual period for the balance sheet is March 2024, where Shareholder's Funds amounted to 1,39,147.66 Cr and Total Assets were 1,44,862.76 Cr.

When is the next results date for Jio Financial?

The next results date for Jio Financial is 16 October 2025.

The next results date for Jio Financial is scheduled for 16 October 2025.

Are Jio Financial latest results good or bad?

Jio Financial Services' latest Q2 FY26 results show strong revenue growth with a net profit of ₹477.87 crore, up 62.98% QoQ, but declining operating margins due to rising costs raise concerns about operational challenges. Overall, the results reflect a mix of positive growth potential and caution for investors.

Jio Financial Services' latest results for Q2 FY26 reflect a mixed performance. On the positive side, the company reported a net profit of ₹477.87 crore, which is a significant increase of 62.98% quarter-on-quarter and 3.13% year-on-year. Additionally, net sales surged by 60.24% QoQ to ₹981.39 crore, demonstrating strong revenue growth.<BR><BR>However, there are concerns regarding margin compression. The operating margin (excluding other income) decreased to 70.15%, down from 74.60% in the previous quarter and 79.75% a year ago. This decline is attributed to rising employee costs and increased interest expenses, which jumped 37.49% QoQ. The profit after tax (PAT) margin improved slightly to 48.69% from 47.87% QoQ, but it has decreased significantly from 66.81% in the same quarter last year.<BR><BR>Overall, while the revenue and profit figures indicate robust growth, the declining margins and rising costs suggest operational challenges that the company needs to address. Investors may view the results as a mix of positive growth potential and caution due to the margin pressures.

How has been the historical performance of Jio Financial?

Jio Financial has shown significant growth in net sales and profits over the past three years, with net sales rising from 41.63 Cr in March 2023 to 2,042.91 Cr in March 2025, and profit after tax increasing from 31.25 Cr to 1,219.77 Cr in the same period, despite fluctuations in cash flow and total assets.

Answer:<BR>The historical performance of Jio Financial shows significant growth over the past three years, particularly in net sales and profit metrics.<BR><BR>Breakdown:<BR>Jio Financial's net sales increased dramatically from 41.63 Cr in March 2023 to 1,853.88 Cr in March 2024, and further to 2,042.91 Cr in March 2025. The total operating income followed a similar trend, rising from 41.63 Cr in March 2023 to 1,853.88 Cr in March 2024, and reaching 2,042.91 Cr in March 2025. Operating profit (PBDIT) also saw substantial growth, moving from 49.34 Cr in March 2023 to 1,559.16 Cr in March 2024, and slightly decreasing to 1,584.26 Cr in March 2025. Profit before tax increased from 49.34 Cr in March 2023 to 1,527.37 Cr in March 2024, and further to 1,554.09 Cr in March 2025. Profit after tax showed a similar upward trajectory, rising from 31.25 Cr in March 2023 to 1,176.03 Cr in March 2024, and reaching 1,219.77 Cr in March 2025. The consolidated net profit for March 2025 was 1,612.59 Cr, compared to 1,604.55 Cr in March 2024 and 31.25 Cr in March 2023. On the balance sheet, total assets increased from 1,14,929.57 Cr in March 2023 to 1,44,862.76 Cr in March 2024, but then decreased to 1,33,499.98 Cr in March 2025. Total liabilities also rose from 1,14,929.57 Cr in March 2023 to 1,44,862.76 Cr in March 2024, before declining to 1,33,499.98 Cr in March 2025. The cash flow from operating activities turned negative, showing -10,083.00 Cr in March 2025, compared to -677.00 Cr in March 2024, while cash flow from investing activities improved to 6,406.00 Cr in March 2025. Overall, Jio Financial has demonstrated strong revenue growth and profitability, despite fluctuations in cash flow and total assets.

Should I buy, sell or hold Jio Financial?

Is Jio Financial technically bullish or bearish?

As of December 3, 2025, the technical trend has shifted to bearish, with key indicators like the MACD and Bollinger Bands on the weekly chart confirming this sentiment, despite mildly bullish daily moving averages.

As of 3 December 2025, the technical trend has changed from mildly bullish to sideways. The current technical stance is bearish, driven by several key indicators. The MACD on a weekly basis is mildly bearish, and the Bollinger Bands also indicate a bearish trend on the weekly chart. The KST and OBV are both mildly bearish on the weekly timeframe, reinforcing the negative sentiment. Moving averages on the daily chart show a mildly bullish stance, but this is overshadowed by the overall bearish signals from the weekly indicators. The stock has underperformed compared to the Sensex over the past week and month, further indicating weakness in the current market environment.

Which are the latest news on Jio Financial?

Why is Jio Financial falling/rising?

As of 04-Dec, Jio Financial Services Ltd's stock price is rising to 302.15 due to increased investor participation, strong financial performance, and positive technical indicators. The stock shows a significant CAGR in profits and sales, alongside high institutional backing, enhancing investor confidence.

As of 04-Dec, Jio Financial Services Ltd's stock price is rising, currently at 302.15, reflecting a change of 1.0 (0.33%) upward. This increase can be attributed to several factors highlighted in the provided data. <BR><BR>Firstly, there has been a notable rise in investor participation, with a delivery volume of 50.83 lacs on December 3, which is up by 26.97% compared to the 5-day average. This suggests increased interest and confidence among investors in the stock. Additionally, the stock's performance today is reported to be inline with its sector, indicating that it is not underperforming relative to its peers.<BR><BR>Moreover, Jio Financial Services has demonstrated strong long-term fundamental strength, evidenced by a remarkable compound annual growth rate (CAGR) of 462.61% in operating profits and an annual growth rate of 600.50% in net sales. The positive financial results for the quarter ending September 25, which include a profit before tax (PBT) of Rs 762.06 crore, growing at 60.9% compared to the previous four-quarter average, further bolster the stock's appeal. The highest net sales recorded at Rs 981.39 crore and the highest profit before depreciation, interest, and tax (PBDIT) at Rs 688.46 crore also contribute positively to investor sentiment.<BR><BR>Additionally, the stock is currently trading higher than its 200-day moving average, which can be a positive technical indicator for investors. The high institutional holdings at 26.81% suggest that knowledgeable investors are backing the stock, which can instill further confidence in retail investors.<BR><BR>In summary, the combination of rising investor participation, strong financial performance, and positive technical indicators are contributing to the upward movement of Jio Financial Services Ltd's stock price.