Jio Financial Services share price has 35% upside potential, Motilal Oswal says with 'buy' rating

Shares of Jio Financial Services Ltd. gained on Wednesday, March 11, as brokerage firm Motilal Oswal initiated coverage on the stock, projecting a 35.2% upside potential from its previous close.

Motilal Oswal has initiated coverage on the stock with a "buy" rating on the stock with a price target of ₹320 per share. This is the second analyst to have initiated coverage on the stock.

The brokerage said Jio Financial Services is being architected as India's next-gen financial services platform aimed to operated across lending, payments, asset management, wealth management and insurance manufacturing and broking, and other digital financial services. It said Jio Financial Services leverages the ecosystem synergies, data, distribution and discipline for scalable finance.

It also said Jio Financial's core investment thesis centres on its ecosystem-led operating advantage, leveraging Jio's subscriber base of over 500 million and the extensive retail footprint of the Reliance Group. It said that unlike traditional NBFCs that face high customer acquisition costs, Jio Fin benefits from a lower-cost entry into the daily digital lives of nearly half of india's population.

While its near-term profitability remains subdued because of the incubation phase of multiple businesses, the groundwork has been laid across technology, partnerships, and distribution positions for the company for scalable growth over the medium to long-term, according to the Motilal Oswal note.

Motilal Oswal has projected Jio Financial Services' consolidated Profit After Tax (PAT) to grow at a Compounded Annual Growth Rate (CAGR) of 48% over financial year 2026-2028.

"While current valuations reflect part of the medium-term growth potential, we believe they do not fully capture the scale opportunity across lending, asset, and wealth management, and digital financial services as these businesses transition from incubation to meaningful profitability," Motilal Oswal said in its note.

Shares of Jio Financial Services were up 1.3% at ₹239 apiece around 9.30 am on Wednesday. The stock has declined 11.3% in the past month.

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