JIO Financial Serv. Stock Price Analysis and Quick Research Report. Is JIO Financial Serv. an attractive stock to invest in?

Around 2% of India's total population invests in financial assets. The mutual fund industry's penetration in India is close to 7% (Based on the number of PAN cardholders). This under penetration offers a huge opportunity for the industry to grow.

Migration to financial savings, wider distribution and sustainable performance are expected to enable growth in the industry.

Also, increasing financial literacy among investors, digitization and the number of mediums available tend to attract more investors to invest in the financial markets.

JIO Financial Serv. stock price today is Rs 322.25. To understand the functions of the JIO Financial Serv. better, you must go through the following points:

Key Financials –

• Profitability: Profit margin (PAT margin) of the company shows how well a company controls its cost. It is one of the important indicators to show the financial health of the company. Net profit of JIO Financial Serv. is Rs 382.47 Cr and the compounded growth of profit in the past 3 years is 45.9346811032737 %. The PAT margin of JIO Financial Serv. is 59.9426 %.

• EPS growth: Investors should ensure the EPS figure is growing faster than revenue numbers because it indicates company management is increasing the efficiency with which it runs the company. In JIO Financial Serv. , the EPS declined by -99.6105 % YOY. 

 Financial Ratios –

•  Return on Equity (ROE): JIO Financial Serv. has a poor ROE track record. The ROE of JIO Financial Serv. is at 1.8153 % for the latest year.

• P/E Ratio: Relative valuation metrics like the P/E ratio can be used to see if the stock of JIO Financial Serv. is worth at the current levels at Rs 322.25. The stock is trading at a current P/E ratio of 587.7076 and the average historical P/E for the last 5 years was 117.54152.

• P/B ratio can be one of the best metrics to value such companies. Currently, JIO Financial Serv. is trading at a P/B of 8.3562 . The average historical P/B of JIO Financial Serv. for the last 5 years was 1.83968. This can be compared with the Market price per share in order to know if the stock is undervalued or overvalued.

• Share Price: - The current share price of JIO Financial Serv. is Rs 322.25. One can use valuation calculators of ticker to know if JIO Financial Serv. share price is undervalued or overvalued.