What JIO Finance Doesn't Tell You !! - Corporate Candle

Summary

The video discusses the investment potential of Jio Finance, highlighting its market capitalization of ₹1.6 lakh crore despite having no loan book, clear business model, or NBFC license. It notes the stock's high PE ratio and the company's gradual entry into the finance sector with segments like lending, insurance, and mutual funds. Jio Finance's partnership with BlackRock is emphasized as a major factor for growth, along with its debt-free status. The video concludes with a positive long-term outlook, positioning Jio Finance as a strong competitor to companies like Paytm and Bajaj Finance, backed by the power of Reliance and BlackRock.

Takeaways

• 😀 No loan book, no clear business model, and no NBFC license from the Reserve Bank, yet a market cap of ₹1.6 lakh crore.
• 😀 The PE ratio of 111.93 signals that the stock is very overpriced.
• 😀 Quarterly results and profit and loss statements aren't helpful yet, as the company has not started actual operations.
• 😀 The promoters' holding has remained constant since the stock was listed, while FIs have been selling and DIs are buying.
• 😀 Public interest in the stock is gradually increasing.
• 😀 The stock's chart shows a double bottom pattern, signaling a potential long rally.
• 😀 If the stock breaks out from the double bottom, the first target is ₹340.
• 😀 Jio Finance is expanding into various segments like lending, insurance, UPI, and mutual funds.
• 😀 Jio Finance has partnered with BlackRock for a $300 million asset management venture, which could bring advanced software features.
• 😀 Jio Finance is debt-free, which gives it a competitive edge against companies like Paytm and Bajaj Finance.
• 😀 Backed by Reliance, Jio Finance has a strong foundation for growth across various sectors and will benefit from Reliance’s expansive reach.

Q & A

What is the market capitalization of the company discussed in the script?

The market capitalization of the company is Rs 1.6 lakh crore.

What does the high PE ratio of 111.93 indicate about the stock?

The PE ratio of 111.93 signals that the stock is very overpriced.

Why are quarterly results and profit and loss statements not helpful right now?

Quarterly results and profit and loss statements are not beneficial at the moment because the actual operations of the company have not yet started.

Has the shareholding pattern of the stock changed since it was listed?

The promoters' holding has remained almost constant since the stock was listed. Recently, foreign institutional investors (FIs) have been selling, while domestic institutional investors (DIs) have made purchases.

What pattern does the stock chart show on the daily timeframe?

The stock chart shows a double bottom pattern, which suggests that a long rally may occur if the stock breaks out.

What is the first target price if the stock breaks out from the double bottom pattern?

The first target price for the stock after a breakout from the double bottom pattern is ₹340.

What are the key reasons to invest in Jio Finance for the long term?

The three major reasons to invest in Jio Finance for the long term are: 1) Jio Finance's expansion into multiple sectors like lending, insurance, and mutual funds. 2) The partnership with BlackRock, which brings advanced software like Aladdin. 3) Jio Finance's debt-free status and its strong backing by Reliance, which positions it well to compete with companies like Paytm and Bajaj Finance.

How does the partnership with BlackRock benefit Jio Finance?

The partnership with BlackRock is beneficial because BlackRock has one of the most powerful financial software systems in the world, called Aladdin. This could provide Jio Finance with advanced metrics and features, enhancing its capabilities.

How does Jio Finance's debt-free status give it an advantage in the market?

Jio Finance's debt-free status gives it a strong financial foundation, allowing it to compete more effectively with other financial companies like Paytm and Bajaj Finance, which may not have the same level of financial stability.

Why is Jio Finance expected to have a strong initial growth compared to its competitors?

Jio Finance is expected to experience strong initial growth because it is backed by Reliance, which has established itself in multiple sectors. This cross-sector support gives Jio Finance a solid starting point for growth, unlike competitors such as Paytm and Bajaj Finance.