Jio Financial Services Ltd has reached a significant milestone as its market capitalization exceeded Rs 2 lakh crore for the first time, driven by a notable 35 percent surge in its share price since the beginning of the year. This surge reflects the growing investor confidence in the company’s prospects. Meanwhile, parent company Reliance Industries also achieved a record high on February 23.
As of 10:30 am, shares of Jio Financial Services surged 8 percent to reach a record Rs 326. This marks the fifth consecutive session of gains for the stock, with a cumulative rise of nearly 17 percent during this period, resulting in a market capitalization of Rs 2.08 lakh crore.
On the same day, Reliance Industries hit a record high of Rs 2,989 intraday. At the time of reporting, the stock was trading at Rs 2,978 on the BSE, up 0.5 percent from its previous close.
Currently, 39 companies are trading above the Rs 2 lakh crore market capitalization mark on local stock exchanges. Reliance Industries leads the pack with a market cap of Rs 20.05 lakh crore, followed by Tata Consultancy Services and HDFC Bank with Rs 14.78 lakh crore and Rs 10.78 lakh crore, respectively.
In its December quarter earnings report, Jio Financial Services posted a net profit of Rs 293 crore and a net interest income of Rs 269 crore. The company’s total interest income stood at Rs 414 crore, with total revenue reaching Rs 413 crore.
Jio Financial Services is strategically shifting its focus towards secured lending while exercising caution regarding unsecured products, aligning with the prevailing market and regulatory environment. The company aims to bolster its secured lending segment by introducing two new products: Device-as-a-Service, which offers operating and financing leases for devices such as Airfiber, phones, and laptops through its subsidiary Jio Information Aggregator Services Ltd, and supply-chain financing, a short-term self-liquidating loan product designed to address suppliers’ working capital requirements. These initiatives are set to be rolled out in the coming quarters, as outlined in a report by B&K Securities.
In January, Jio Financial Services, in collaboration with Blackrock Financial Management, filed documents with the Securities and Exchange Board of India (SEBI) to venture into the mutual fund business in India.
Jio Financial Services made its debut on the stock exchange on August 21, 2023. Since its listing, the stock has witnessed a commendable gain of more than 21 percent, reflecting positive market sentiment towards the company’s strategic direction and growth prospects.