Jio Financial (JIOFIN)
Slow GrowerFairStock Score: 37/100 — MIXED
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹249.05 |
| Market Cap | ₹1,64,451.24 Cr |
| P/E Ratio | 77.59 |
| ROCE | 1.47% |
| ROE | 1.3% |
| Dividend Yield | 0.24% |
| Profit Growth | 170.2% |
| Debt/Equity | 0.16 |
| Sales Growth | 208.2% |
| Free Cash Flow | ₹-21,136 Cr |
| Promoter Holding | 47.12% |
| 52-Week Range | ₹223.3 — ₹321.6 |
| Sector | Finance |
| Book Value | ₹211.44 |
Strengths
- Low leverage: Debt/Equity of 0.16
- Promoter holding of 47.12% aligns interests with minority shareholders
- Top-line momentum: sales growth of 51.85% and latest quarter sales of ₹901 Cr
- Latest quarter net margin of roughly 29.8% shows some earnings conversion if sustained
Concerns
- ROE of just 1.30% and ROCE of 1.47% indicate poor capital productivity
- Negative free cash flow of -₹21,136 Cr means the business is consuming capital
- Profit growth of -0.14% despite sales growth of 51.85% shows no bottom-line compounding
- Valuation is stretched: P/E 102.52, EV/EBITDA 73.63, price ₹248.60 vs Graham Number ₹81.27, and Altman Z-Score of 1.71 is in the danger zone
AI Analysis
I begin by asking what Jio Financial will earn for shareholders over the next decade. The answer from these numbers is not encouraging. At ₹248.60, I am paying over 102 times trailing earnings for an investment company that earns just 1.30% on equity and 1.47% on capital. Benjamin Graham would insist on a margin of safety; here the price stands 28% above book value of ₹194.39, and the Graham Number of ₹81.27 gives me no comfort. The margin of safety is deeply negative at -214%. The top line jumped 51.85%, yet profit growth is -0.14%. That is growth without value creation. The latest quarter, sales of ₹901 Cr produced net profit of ₹269 Cr, but annualised earnings still do not support a ₹1.62 lakh crore market cap. Free cash flow is negative ₹21,136 Cr, which tells me the business is consuming cash, not throwing it off. Debt-to-equity of 0.16 and promoter holding of 47.12% are positives, but a low debt load does not compensate for a 1.30% ROE. The Altman Z-score of 1.71 and EV/EBITDA of 73.63 reinforce my discomfort. I do not see a durable moat from these figures. This may be a well-connected financial entity, but as a shareholder I would be relying on hope rather than earnings. Graham said price is what you pay, value is what you get. At this price, I get very little value. I would pass and wait until either book value grows closer to price or earnings justify the premium.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer