Motilal Oswal Initiates Coverage of Jio Financial Services with 'Buy' Recommendation, Sees 48% Profit CAGR

Jio Financial Services Receives 'Buy' Rating from Motilal Oswal

Market Capitalization: Jio Financial Services shares have gained approximately 5% over the past year, resulting in a market capitalization of roughly Rs 1.5 lakh crore.

Target Price and Upside Potential: Motilal Oswal Financial Services has initiated coverage on Jio Financial Services with a 'buy' rating, implying an upside potential of about 36% from current levels. The brokerage has set a target price of Rs 320 on Jio Financial Services stock, against the current price of Rs 236.

Company Overview: Jio Financial Services is a technology-led financial services platform spanning lending, payments, asset management, insurance, and wealth management, built around the digital and retail ecosystem of the Reliance group.

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Investment Thesis: The core investment thesis rests on the company's ecosystem advantage, including access to Jio's subscriber base of over 500 million users and Reliance's extensive retail footprint, which can significantly lower customer acquisition costs compared with traditional financial institutions.

Key Growth Drivers: Motilal Oswal expects lending arm Jio Credit to emerge as the primary growth engine, supported by early traction in secured retail products such as home loans and loans against property. The brokerage also highlighted the company's ability to leverage data and digital platforms to build a scalable financial ecosystem.

Financial Projections: Motilal Oswal expects consolidated net profit to grow at a compound annual rate of about 48% between FY26 and FY28, driven by the scaling up of lending, payments, asset management, and insurance businesses.