The financial division of Reliance Industries, Jio Financial Services, has been steadily increasing and setting new records in the past few months. Numerous encouraging developments that have increased investor confidence in the company are driving this trend.
Stock Hits Record High After Impressive Financial Performance and Joint Venture Announcement
The stock surpassed its previous record high of ₹384.85 apiece to reach a new all-time high of ₹394.70 apiece during the previous trading session. The stock has gained an incredible 73.30% in the last six months, rising from ₹221 to its current value of ₹382.95. The stock increased by more than 25% in just February, then by 14.11% in March, and by 9% so far this month.
The business posted an impressive result for the fiscal year that ended in FY24, with its consolidated net profit multiplying to ₹1,605 crore from ₹31 crore in the previous fiscal year, FY23. The quarterly PAT was ₹78 crore, and the annual net profit was ₹383 crore when considered separately.
The company and BlackRock announced a 50:50 joint venture last week to launch a wealth management and broking enterprise. The goal of this project is to engage in wealth management activities. Initially, a wealth management company will be established in India, followed by a brokerage firm. The increasing number of demat accounts in recent years has led to significant growth in India’s wealth management and broking sector.
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AMC Sector Thrives Amidst Growing Investor Trends and Wealth Management Optimism
AMC companies have posted strong results for the quarter ended March 31, which is indicative of the expanding trend of stock investing propelled by rising disposable income and the number of affluent individuals.
Forecasts indicate bright futures for the wealth management sector, with a notable rise in the number of high-net-worth individuals (HNIs) and ultra-high-net-worth individuals (UHNIs) in India anticipated.
The number of people earning more than Rs. 1 crore has increased by 15% over the last five years, and projections suggest that in the next five years, their numbers will rise to 3.40 lakhs, which will support the sector’s growth. The stock was included in the Nifty Next 50 index on March 28. Nuvama believes that the stock may benefit the most from the most recent semi-annual adjustment exercise, with inflows of as much as $80 million possible.
Jio Financial Services Limited Goes Public, Unveiling Diverse Financial Offerings
On August 21, 2023, Jio Financial Services Limited, formerly Reliance Strategic Investments Limited, the dissolved financial division of Reliance Industries, went public on the stock market. It was first listed for ₹265 on the BSE and ₹262 on the NSE, which was a little more than the ₹261.85 final price per share that was found out.
The business functions as a non-banking, non-deposit taking financial institution with a focus on insurance broking, retail and merchant lending, payments bank operations, and payments solutions.
