Jio Financial Services: KR Choksey advises buying the stock, sees 24% upside – 3 key reasons behind the bullish stance
₹290 apiece, reflecting an upside of 24%. Jio Financial Services is a non-deposit-taking, non-banking financial company. Its primary offerings include retail lending, merchant lending, payments bank operations, payments solutions, and insurance broking.
The company primarily targets key customer segments, namely individuals and small businesses in urban, semi-urban, and rural India, to offer a sustainable and comprehensive range of financial services. It operates its financial services business through its consumer-facing subsidiaries, namely Jio Finance Limited (JFL), Jio Insurance Broking Limited (JIBL), and Jio Payment Solutions Limited (JPSL), and a joint venture, namely Jio Payments Bank Limited (JPBL). Also Read: NBFCs gave most retail loans to buy vehicles and houses, reveals RBI data KR Choksey highlights the following key factors for its bullish outlook: The financial services sector in India remains largely untapped, serving only tens of millions of individuals, presenting a significant growth opportunity for new entrants like Jio Financial Services.
The wide customer base of Reliance Jio (the telecom arm of Reliance Industries) and Reliance Retail provides a substantial advantage to Jio Financial Services. With millions of Jio & Retail mart users already onboard, the financial services arm has a vast potential customer base to tap into. This synergy between telecom and finance is likely to fuel Jio Financial Services’ growth in the long run.
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