Is there value in Jio Financial after its listing today? Digant Haria answers

economictimes.indiatimes.com:

«I do not see that this should get a runaway valuation of say two times, three times. They need to prove as this one-and-a-half, Rs 1.6 lakh crore market cap itself is a lot of respect to the Reliance Group, I think beyond that it is a lot of hard work,» says Digant Haria, GreenEdge Wealth.Is there value in Reliance Jio after listing today because it will be listing at a market cap of about 1.7 lakh crore. Do you think there is value in that franchise?See, I just think that it is listed at a very fair price like one-and-a-half times of consolidated net worth.

You give one-and-a-half times net worth to a business which is just about to start, like nothing has started. There is capital, there is management and there is nothing else right now and see lending is not something where Reliance Jio will come and disrupt something. There are really good companies.

There are a lot of good public sector banks, private banks, NBFCs like Bajaj Finance, Chola already there. So, I do not see that this should get a runaway valuation of say two times, three times. They need to prove as this one-and-a-half, Rs 1.6 lakh crore market cap itself is a lot of respect to the Reliance Group, I think beyond that it is a lot of hard work.

They have to prove themselves just the way Bajaj and Chola did over the last decade or HDFC has done over the last 20 years. I do not see much easier upside from here. It is already getting a good share of value.Less than six months’ time frame; one- to three-year time frame and three plus.I will just put some numbers to that kind of a summary that see, in India you get, say, two-and-a-half times price to book only when you are able to do 3.5% kinds of an ROA.