JIOFIN - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 2.9
| Stock Code | JIOFIN | Market Cap | 1,70,232 Cr. | Current Price | 268 ₹ | High / Low | 339 ₹ |
| Stock P/E | 244 | Book Value | 45.9 ₹ | Dividend Yield | 0.19 % | ROCE | 2.64 % |
| ROE | 2.22 % | Face Value | 10.0 ₹ | DMA 50 | 282 ₹ | DMA 200 | 294 ₹ |
| Chg in FII Hold | -0.30 % | Chg in DII Hold | 0.58 % | PAT Qtr | 73.1 Cr. | PAT Prev Qtr | 456 Cr. |
| RSI | 47.2 | MACD | -10.1 | Volume | 1,57,48,208 | Avg Vol 1Wk | 2,02,70,109 |
| Low price | 199 ₹ | High price | 339 ₹ | PEG Ratio | 5.05 | Debt to equity | 0.00 |
| 52w Index | 49.6 % | Qtr Profit Var | -2.79 % | EPS | 1.10 ₹ | Industry PE | 23.5 |
📊 Jio Financial Services (JIOFIN) shows weak fundamentals with extremely high valuations (P/E 244 vs. industry 23.5), low ROCE (2.64%) and ROE (2.22%), and sharp decline in quarterly profits. Technically, the stock is trading below both 50 DMA (282 ₹) and 200 DMA (294 ₹), with RSI at 47.2 indicating neutral momentum and MACD at -10.1 showing bearish pressure. Despite strong trading volumes and some institutional support, the risk profile is high, making it a poor candidate for swing trading in the near term.
💡 Optimal Entry Price: Around 255 ₹ – 265 ₹ (near support zone).
🚪 Exit Strategy: If already holding, consider exiting near 280 ₹ – 290 ₹ (resistance at DMA levels) or place a stop-loss below 250 ₹.
✅ Positive
- Debt-free balance sheet (Debt-to-equity 0.00) ensures financial stability.
- DII holdings increased (+0.58%), showing domestic institutional support.
- Strong trading volume (1.57 crore vs. 2.02 crore average) indicates active investor interest.
⚠️ Limitation
- Extremely high P/E ratio (244) compared to industry average (23.5) indicates severe overvaluation.
- Low ROCE (2.64%) and ROE (2.22%) reflect poor capital efficiency.
- MACD (-10.1) signals bearish momentum.
- PEG ratio of 5.05 suggests valuation pressure relative to growth.
📉 Company Negative News
- Quarterly PAT dropped sharply from 456 Cr. to 73.1 Cr. (-2.79% variation).
- FII holdings decreased (-0.30%), showing reduced foreign investor confidence.
- Stock trading significantly below 52-week high (339 ₹), reflecting weakness.
📈 Company Positive News
- Dividend yield of 0.19% provides minimal but steady returns.
- Stock trading near support levels may attract short-term speculative buying.
🏭 Industry
- Industry PE at 23.5 vs. JIOFIN PE at 244 suggests extreme overvaluation compared to peers.
- Financial services sector benefits from credit growth, but company-specific fundamentals remain weak.
🔎 Conclusion
Jio Financial Services is fundamentally weak with stretched valuations and declining profits, though strong volumes and domestic institutional support provide some cushion. Swing traders may enter near 255 ₹ – 265 ₹ with a target around 280 ₹ – 290 ₹. Stop-loss below 250 ₹ is recommended. The stock offers limited swing trade potential with a rating of 2.9.