NIKUNJ DALMIA ON JIO FINANCIAL SERVICES STOCK, STRATEGY: BUY JFSL SHARES AFTER JV WITH BLACKROCK? ANALYSIS
Nikunj Dalmia On Jio Financial Services Stock: Mukesh Ambani-owned Jio Financial Services Limited (JFSL) has announced an equal joint venture with BlackRock to launch a wealth management business.
In an exchange filing, the company said it has agreed to form a joint venture with BlackRock Inc for "undertaking wealth business, including incorporation of a wealth management company and subsequent incorporation of a brokerage company in India."
Following this, Jio Financial Services shares jumped 5 per cent on Wednesday. The stock opened gap up with a gain of 299 per cent at Rs 364.90 and went on to hit day's high at Rs 371.95. Around 1 PM, the counter traded firmly in green with a gain of 2 per cent at Rs 362 apiece. Nearly 4 crore shares of the company changed hands around the same time.
ET NOW Editor-in-chief Nikunj Dalmia said that the growth potential in Jio's business is huge. The stock has rallied in the short term in anticipation of a growth in the business.
"This stock is not cheap right now. The stock has already outperformed...considering the past growth record of Reliance Industries," he noted.
On whether Jio Financial Services can emerge as a big disruptor, he said, "Yes, definitely. The company is making announcements..."
"If you already hold Jio Financial Services shares, then you shouldn't sell. If you want to buy this stock, then it is not a good time to buy at this price. According to me, the levels at which Jio Financial is a good by is below Rs 300," Nikunj Dalmia said.
"This is a stock which one should buy when there is a panic in the market. At these levels, you shouldn't chase the stock," he added.
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