Jio Financial Services

Jio Financial Services shares are in spotlight following a jump in Q2 profits and business news.

Jio Financial claimed that by reforming and modernizing financial services with a digital-first strategy, it will enhance their penetration. According to its presentation, it offers personal loans for salaried and self-employed people "with end-to-end digital journey introduced on Mumbai's MyJio app.Jio Financial Services Ltd. shares will be in the spotlight on Tuesday morning after Reliance Industries Ltd.'s demerged firm reported a doubling of its consolidated earnings after tax for the third quarter of 2013 and announced forays into new industries. Jio Financial reported that its earnings increased sequentially by 11% to Rs 668 crore from Rs 371 crore in the same period last year. Interest income decreased 7.86% to Rs 186 crore. But thanks to dividend income, overall income increased by 46.82% to Rs 608 crore from Rs 414 crore in the same period last year. Pre-provisioning operating profit increased by 48.93%, from Rs 360 crore QoQ, to Rs 537 crore.

Centrum Jio Financial Services (JFS) has a high brand equity, an experienced board and management team, a robust capital basis, and access to a sizable customer base and internal stores through group companies, according to a flash note from a broker, giving it a head start in terms of growth. The company's net value is calculated to be Rs 20,857 crore. The brokerage subtracted the value of equity and preference share investments in affiliated entities to arrive at adjusted networth.

According to our calculations, a 20% discount on a holding in RIL, JFSL trades at 3.1 times P/BV, according to Centrum Broking.

Jio Financial said that by reforming and modernizing them with a digital-first strategy, it will boost the adoption of its financial services. Jio Financial stated in its presentation that it provided personal loans for salaried and self-employed people, "with end-to-end digital journey launched in MyJio app in Mumbai."

JFS stated that it had 300 outlets and a pan-India consumer durables credit program. According to JFS, some of the products in development include business and merchant loans for single proprietors, small businesses, and self-employed people, as well as loans for homes, cars, and stock.

Jio Financial claimed to have partnerships with 24 insurance firms, including four health insurers, 15 general insurers, and five life insurers.  According to Jio Financial, it provides a wide range of products, including embedded insurance, general insurance, health insurance, vehicle insurance, corporate solutions, and employer-employee benefits.

According to Jio Financial, as of September 30, its consolidated total assets were worth Rs 1,19,598 crore. It stated that as of September 30, its consolidated net value was Rs. 1,15,631 crore, up from Rs. 1,14,120 crore as of March 31.