Jio Financial Services: Best time to buy? Motilal Oswal initiates coverage with THIS target

Shares of Jio Financial Services were trading lower in Thursday’s session. The stock was quoted at Rs 237.05 at around 10:50 am, down Rs 1.65 or 0.69 per cent from the previous close.

The stock opened at Rs 237.40, which also remained its intraday high so far, while it touched a low of Rs 234 during the session. The company currently commands a market capitalisation of about Rs 1.51 lakh crore.

The stock has a 52-week high of Rs 338.60 and a 52-week low of Rs 203.10.

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Motilal Oswal sees platform-led long-term opportunity

According to a Motilal Oswal brokerage note, Jio Financial Services represents a long-term platform opportunity in India’s evolving financial services landscape. The brokerage highlighted the company’s strong parentage, solid balance sheet and access to a large digital consumer ecosystem as key structural advantages.

However, the note added that near-term earnings and return metrics may remain constrained as the company continues to build operating franchises across lending, asset and wealth management, payments, insurance, and broking.

The brokerage said the company is pursuing parallel scaling of multiple businesses, anchored in digital-first distribution, capital discipline and selective partnerships, which could create meaningful medium- to long-term optionality.

Valuation and growth outlook

The brokerage estimates that the company could deliver consolidated profit after tax (PAT) CAGR of around 48 per cent between FY26 and FY28. It has initiated coverage with a ‘buy’ rating and a target price of Rs 320, based on a sum-of-the-parts (SoTP) valuation for March 2028.

It also noted that the current valuation does not fully capture potential upside from businesses such as insurance manufacturing, wealth management, broking and marketplace, which remain in their early incubation phase.

The brokerage said the stock currently trades at around 1x FY27 estimated price-to-book value (P/BV).

Q3FY26 earnings snapshot

Jio Financial Services had earlier reported its Q3FY26 earnings on January 15. The company posted an 8.75 per cent year-on-year decline in consolidated net profit to Rs 268.98 crore, compared with Rs 294.78 crore in the same quarter last year.

Pre-provisioning operating profit rose 7 per cent year-on-year to Rs 354 crore.

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Revenue growth, however, remained strong. Total revenue from operations jumped to Rs 900.90 crore, compared with Rs 294.78 crore in the December quarter of FY25.

The company said total income rose 101 per cent year-on-year to Rs 901 crore, driven by higher business volumes across segments.

Its assets under management (AUM) stood at Rs 19,049 crore in Q3FY26, rising 4.5 times year-on-year and 29 per cent sequentially, indicating strong expansion in the lending and financial services business.