Jio Financial Services shares up 56% in 2024: Key factors driving this stock rally

The NBFC stock has jumped nearly 56% year-to-date (YTD). To recall, the company was listed only in August last year after being carved out of Reliance Industries Ltd (RIL) as a separate entity.

The rally seen in Jio Financial’s share price since the beginning of 2024 has caught everyone’s attention as the return in the year 2023 was restricted to a single digit at around 8%.

The uptick in the stock price has been a combination of various factors, with the major one being the company’s partnership with the world’s largest asset manager Blackrock.

In April this year, Jio Financial Services entered into a joint venture with BlackRock to foray into wealth management and broking businesses in India.

Jio Financial signed a 50:50 joint venture with BlackRock to incorporate a wealth management company and eventually a brokerage in India, according to an exchange release. The company had already partnered with BlackRock to launch an asset management business in the country.

The financial numbers also contributed to the positive sentiment around Jio Financial Services. For the full financial year 2023-24, the company’s consolidated net profit jumped multi-fold to ₹1,605 crore against ₹31 crore in FY 2022-23. Total consolidated income grew to ₹1,855 crore in FY24 from just ₹44 crore in FY23. This was the first annual result of the company as a listed entity.

There were also speculations on Dalal Street that the company was in talks with Paytm to acquire its wallet business. However, the company later denied the reports, saying that they were speculative.

Recently, the company was in the news for seeking shareholder approval for its leasing subsidiary to acquire telecom equipment and devices worth ₹36,000 crore from RIL’s retail arm Reliance Retail Ltd.

Jio Financial informed that its wholly-owned subsidiary Jio Leasing Services Ltd was planning to enter the device leasing business, and the equipment will be deployed in broadband wireless connectivity and other services.

Shares of Jio Financial were trading 1.96% higher at ₹364 apiece on the NSE at 2:11 pm.