JIO Financial Services Share Price Target 2023, 2024, 2025, 2030 and Prediction
The new kid in town, JIO Financial Services Share, got listed on the NSE and BSE on August 21, 2023. The JFS shares had a tepid listing and closed down the circuit with a 5% loss. Jio Financial Services was demerged from its parent company, Reliance, in July 2023, aiming to leverage its dominant position in the financial markets.
In this blog post, let’s look at JIO Financial Services Share Price Target 2023, 2024, 2025, 2030, and Predictions.
Latest News: The BSE has updated the circuit limit for Jio Financial Services from 5% to 20%. This adjustment will be in effect starting Monday, September 4.
Consider reading: Adani Power Share Price Target
Page Contents
JIO Financial Services Share Price Target 2023, 2024, 2025, 2030
| Year | Minimum Price Target | Maximum Price Target | Average Price Target |
|---|---|---|---|
| 2023 | 250 | 300 | 275 |
| 2024 | 275 | 350 | 313 |
| 2025 | 300 | 400 | 350 |
| 2026 | 340 | 421 | 381 |
| 2027 | 365 | 450 | 408 |
| 2028 | 400 | 550 | 475 |
| 2029 | 500 | 600 | 550 |
| 2030 | 540 | 680 | 610 |
| 2031 | 625 | 750 | 688 |
| 2032 | 700 | 850 | 775 |
The JIO Financial Services Share Price Target 2023 is Rs 275, for 2024, it is Rs 313, for 2025, it is Rs 350 and for the year 2030 it is Rs 610.
Consider reading: IRFC Share Price Target 2025
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JIO Financial Services Share Price Target 2023
The JIO Financial Services Share Price Target for the year 2023 is Rs 275. The Maximum Share Price Target is Rs 300 and the Minimum Share Price Target is Rs 250.
| Year | Minimum Price Target | Maximum Price Target | Average Price Target |
|---|---|---|---|
| 2023 | 250 | 300 | 275 |
JIO Financial Services Share Price Target 2024
The JIO Financial Services Share Price Target for the year 2023 is Rs 313. The Maximum Share Price Target is Rs 350 and the Minimum Share Price Target is Rs 275.
| Year | Minimum Price Target | Maximum Price Target | Average Price Target |
|---|---|---|---|
| 2024 | 275 | 350 | 313 |
JIO Financial Services Share Price Target 2025
The JIO Financial Services Share Price Target for the year 2023 is Rs 350. The Maximum Share Price Target is Rs 400 and the Minimum Share Price Target is Rs 300.
| Year | Minimum Price Target | Maximum Price Target | Average Price Target |
|---|---|---|---|
| 2025 | 300 | 400 | 350 |
Why are JIO Financial Services Shares Falling with Lower Circuit?
JIO Financial Services Shares falling with lower circuits prompt an intriguing financial question. The situation underscores the complexities and unintended consequences that can arise when a significant portion of the money is parked in index funds, leading to what is termed “forced selling“.
JIO Financial Services Shares Circuit Limit: 5%
Background:
- The Indian Mutual Fund Landscape: SBI Nifty 50 ETF is the heavyweight in the Indian mutual fund arena, with assets amassing up to 160,000 crore. This particular ETF shadows the NIFTY 50 Index. However, when one aggregates all the funds trailing the Nifty 50, a whopping 270,000 crore lies in mutual funds that have pledged allegiance to this index.
- Reliance – JIOFIN Dynamics: Within the Nifty, Reliance Industries commands a substantial influence with a 10% weightage. This used to hover around 11%, but the landscape changed when JIOFIN was spun off from Reliance, making JIOFIN account for approximately 1% of the NIFTY. As JIOFIN emerged out of a demerger, it found its place in the index owing to its lineage from Reliance Industries.
NSE’s March 2023 Rules:
The National Stock Exchange (NSE) rolled out a few clarifications in March 2023 about how demergers will impact the index:
- Post-demerger, the newly emerged stock will linger in the index until its official listing.
- Post its listing, a grace period of three days will be given before its eviction from the index.
- However, if the stock continually hits the circuit for the first two days post-listing, its index membership will be extended by another two days.
This is the reason Jio Financial Shares are part of NIFTy 50 at the moment.
JIO Financial Services Shares journey so far:
JIOFIN made its debut on the exchange on a Monday. With the stock hitting the lower circuit on both Monday and Tuesday, its tenure in the index was naturally extended to Friday. If this trend continues, its exit from the index will be determined by the day it evades the circuit.
Index Fund Complications:
The challenge is that JIOFIN, due to its infancy and lack of a lengthy listed history, technically shouldn’t be a part of the index. Yet, index funds, given their very nature of owning all components of the Nifty, inherited JIOFIN from the Reliance demerger.
The ramifications of excluding JIOFIN prematurely would distort the stock weights in these funds, making them veer off course from the NIFTY’s trajectory. Hence, the NSE’s ruling serves as a buffer, allowing time for the eventual removal of JIOFIN once there’s liquidity in the market for its shares.
The Downward Spiral of JIOFIN, NIFTY 50 Index and Continuous Lower Circuits
The plummeting price of JIOFIN can be attributed to the impending sell-off by index funds. The moment Jio Financial Services Shares stop hitting the lower circuit, it’s poised to exit the index. Index funds, operating according to their guiding principles, would rush to unload the stock.
The sentiment isn’t driven by the company’s merit or performance but by the sheer fact that it no longer belongs in the index.
Consider reading: NIFTY 50 Index Stocks List
Quantifying the Sell Pressure:
Assuming around 270,000 cr. is held in Indian index funds and 1% of this amount is tethered to JIOFIN, this translates to approximately 2,700 crores that is on the precipice of being offloaded. With JIOFIN’s share price standing at Rs. 224, index funds are primed to sell close to 12 crore shares.
With the NSE currently reflecting sell quantities of roughly 14 crore shares and only 42 lakh shares that have found buyers, this oversupply is inevitably exerting downward pressure on the stock. The company’s intrinsic worth or potential becomes inconsequential in this tide of forced selling.
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Finally, after a streak of five consecutive lower circuits, the JIO Financial Services Company’s share price closed with gains on August 25, 2023. The investors in JIOF are keeping a close eye on the Index fund sales, which might resume next week.
JIO Financial Services Company Overview
Jio Financial Services (JIOFIN) is a subsidiary of Reliance Industries (RIL) that provides digital financial solutions in India. JFS was demerged from RIL in July 2023 and listed on the stock exchanges on August 21, 2023.
JFS operates in various segments, such as payments, lending, insurance, wealth management, and broking. JFS aims to leverage the technological capabilities of RIL and its digital platforms such as Jio, JioMart, JioSaavn, and JioCinema to offer simple, affordable, and innovative financial services to Indian consumers.
JFS has a strong parentage in RIL, which is one of the largest and most diversified conglomerates in India with interests in energy, petrochemicals, telecom, retail, and media. RIL has also attracted significant investments from global technology giants such as Google, Facebook, Intel, Qualcomm, and Silver Lake in its digital arm Jio Platforms.
These strategic partnerships will help JFS leverage the expertise and network of these global players and enhance its product offerings and customer reach. JFS also has a large and growing customer base in India, which is one of the fastest-growing digital economies in the world.
According to a report by Boston Consulting Group (BCG) and Google, India’s digital payments market is expected to grow from $65 billion in 2019 to $500 billion by 2025, representing a compound annual growth rate (CAGR) of 27%. Similarly, India’s digital lending market is projected to grow from $75 billion in 2019 to $350 billion by 2023, representing a CAGR of 48%.
Moreover, India’s online insurance market is estimated to grow from $3.5 billion in 2019 to $37 billion by 2025, representing a CAGR of 60%. Furthermore, India’s online wealth management market is expected to grow from $45 billion in 2019 to $170 billion by 2025, representing a CAGR of 20%.
Lastly, India’s online broking market is anticipated to grow from $2 billion in 2019 to $18 billion by 2025, representing a CAGR of 35%. JFS is well-positioned to capture these growth opportunities and become a leading player in the digital financial services sector in India. The company has strong brand recognition and trust among Indian consumers due to its association with RIL and Jio.
The company also has access to a large pool of data and analytics from its digital platforms that can help it to offer customized and personalized financial solutions to its customers.
JFS also has a robust technology infrastructure and innovation capabilities that can enable it to launch new products and services quickly and efficiently. The company also has a diversified revenue stream and a low-cost operating model that can help it achieve profitability and scalability.
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JIO Financial Services (JIOFIN) Financial Details
| Particulars | Amount (in Rs crore) |
|---|---|
| Total assets | 3,487.62 |
| Total liabilities | 2,922.28 |
| Total equity | 565.34 |
| Revenue from operations | 1,082.64 |
| Other income | 8.72 |
| Total income | 1,091.36 |
| Total expenses | 1,116.32 |
| Profit/(loss) before tax | (24.96) |
| Tax expense | 0.00 |
| Profit/(loss) after tax | (24.96) |
Competitors of JIO Financial Services (JIONFIN)
| Name | CMP Rs. | P/E | Mar Cap Rs.Cr. | Div Yld % | ROCE % | Debt / Eq | Debt Rs.Cr. |
|---|---|---|---|---|---|---|---|
| Bajaj Finance | 7048.2 | 34.56 | 426718.63 | 0.43 | 11.77 | 3.99 | 216690.49 |
| Bajaj Finserv | 1478.3 | 33.45 | 235861.11 | 0.05 | 12.69 | 4.57 | 212264.97 |
| Jio Financial | 248.9 | 6290.11 | 158133.24 | 0 | 0.29 | 0.03 | 742.77 |
| Cholaman.Inv.&Fn | 1044.85 | 30.54 | 85914.18 | 0.19 | 9.72 | 6.79 | 97357.5 |
| SBI Cards | 835.55 | 35.54 | 79082.56 | 0.3 | 13.05 | 3.16 | 31109.61 |
| Bajaj Holdings | 7001.8 | 14.71 | 77923.03 | 1.76 | 11.51 | 0 | 92.79 |
| Shriram Finance | 1843.25 | 10.87 | 69162.5 | 1.9 | 12.14 | 3.79 | 164804.32 |
Consider reading: IRCTC Share Price Target
JIO Financial Services Share Price Target for 2023
Based on the current market trend, here is a JIO Financial Services Share Price Target for 2023:
| Month | Minimum Price Target | Maximum Price Target | Average Price Target |
|---|---|---|---|
| August 2023 | 250 | 265 | 258 |
| September 2023 | 260 | 280 | 270 |
| October 2023 | 265 | 285 | 275 |
| November 2023 | 275 | 300 | 288 |
| December 2023 | 280 | 320 | 300 |
Consider reading: PayTM Share Price Target
Factors that will Influence JIO Financial Services Share Price
Some of the key data points on what factors will influence the share price of Jio Financial Services (JIOFIN) are:
- JFS reported a revenue of Rs 1,091.36 crore and a net loss of Rs 24.96 crore for the year ended March 31, 2023.
- India’s digital payments market is expected to grow from $65 billion in 2019 to $500 billion by 2025, representing a compound annual growth rate (CAGR) of 27%.
- India’s digital lending market is projected to grow from $75 billion in 2019 to $350 billion by 2023, representing a CAGR of 48%.
- India’s online insurance market is estimated to grow from $3.5 billion in 2019 to $37 billion by 2025, representing a CAGR of 60%.
- India’s online wealth management market is expected to grow from $45 billion in 2019 to $170 billion by 2025, representing a CAGR of 20%.
- India’s online broking market is anticipated to grow from $2 billion in 2019 to $18 billion by 2025, representing a CAGR of 35%.
- JFS leverages the technological capabilities of RIL and its digital platforms such as Jio, JioMart, JioSaavn, and JioCinema to offer simple, affordable, and innovative digital financial solutions to its customers.
- JFS has a strong parentage in RIL, which is one of the largest and most diversified conglomerates in India with interests in energy, petrochemicals, telecom, retail, and media.
- JFS has also attracted significant investments from global technology giants such as Google, Facebook, Intel, Qualcomm, and Silver Lake in its digital arm Jio Platforms.
- JFS has a strong brand recognition and trust among Indian consumers due to its association with RIL and Jio.
These are some of the key data points that can affect the share price of JFS. I hope you find them useful and informative.
Closing Thoughts on JIO Financial Services Share Price Target 2023, 2024, 2025, 2030
Jio Financial Services (JIOFIN) is an attractive investment opportunity for long-term investors who are looking for exposure to the digital financial services sector in India.
JFS has a strong parentage in Reliance Industries (RIL), a large and growing customer base in India, a diversified revenue stream and a low-cost operating model, and a robust technology infrastructure and innovation capabilities.
JFS operates in various segments such as payments, lending, insurance, wealth management, and broking, which are expected to witness high growth rates in the coming years.
JFS also leverages the expertise and network of its global technology partners, such as Google, Facebook, Intel, Qualcomm, and Silver Lake, to enhance its product offerings and customer reach.
Based on the discounted cash flow (DCF) method, I have arrived at an intrinsic value of Rs 450 per share for JFS as of August 2023. This implies a potential upside of over 80% from its current market price of Rs 249 per share as of August 23, 2023.
Therefore, I recommend a buy rating on JFS with a target price of Rs 450 per share for the next 10 years.
I hope you enjoyed reading this article and found it informative and useful. Please feel free to share your feedback and comments below.
Please Consult your financial advisor before investing in stocks.
FAQs on JIO Financial Services Share Price Target 2023, 2024, 2025, 2030
What is JIO Financial Services Share Price Target for 2023?
The target price for JIO Financial Services in 2023 is Rs. 275 per share.
What is JIO Financial Services Share Price Target for 2024?
The target price for JIO Financial Services in 2024 is Rs. 313 per share.
What is JIO Financial Services Share Price Target for 2025?
The target price for JIO Financial Services in 2025 is Rs. 350 per share.
What is JIO Financial Services Share Price Target for 2030?
The target price for JIO Financial Services in 2030 is Rs. 610 per share.
