Motilal Oswal Maintains 'Buy' Rating on JIO Financial Services, Targets Rs 600

Motilal Oswal Research Report: JIO Financial Services

Company Overview

Jio Financial Services (JIOFIN) is a diversified, technology-led financial services platform being developed to operate across various segments, including lending, payments, asset management, wealth management, insurance manufacturing, and broking, as well as other digital financial services. JIOFIN leverages the extensive distribution and data ecosystem of the Reliance group to drive its operations.

Investment Thesis

Read also: Oshea Herbals Aims for Rs 650 Crore Revenue Amidst Expansion Efforts

The core investment thesis for JIOFIN centers around its ecosystem-led operating advantage, primarily driven by its access to Jio's subscriber base of over 500 million and the extensive retail footprint of the Reliance Group. This unique positioning enables JIOFIN to benefit from a lower-cost entry into the daily digital lives of nearly half of India's population, providing a distinct risk assessment edge through proprietary AI models analyzing telecom and retail behavior data.

Outlook

We model a 48% consolidated PAT CAGR over FY26-28E and initiate coverage on JIOFIN with a BUY rating and a target price (TP) of INR320/share (based on Mar'28E SoTP). Our SoTP valuation does not factor in the valuation of businesses in their incubation phases.

Recommendation

Read also: Suzlon to Expand Business Scope Beyond Wind Energy, Invests Rs 500 Crore in New Subsidiary This Fiscal Year

Based on our analysis, we recommend considering JIOFIN as a viable investment opportunity, with a potential for significant growth and returns.