Jefferies: Jio Financial Adopts Balanced Approach, Limited Risk for Bajaj Finance and Banks

Jefferies Sets Target Price of Rs 9,470 for Bajaj Finance; Stays Mum on JFS

Jefferies Notes Jio Financial’s Strategic Approach to Unsecured Lending, Highlights Growth Opportunity

1. Focus on Consumer Loans and Supply Chain Finance: JFS management is concentrating on consumer loans, both secured and unsecured, along with supply chain finance.
2. Expansion in Insurance Broking: JFS has expanded its client base in insurance broking to 27, indicating a growing presence in the insurance sector.
3. Ramping up Payments Bank & Platforms: The NBFC is actively scaling up its payments bank and payments platforms, suggesting a strategic focus on the digital financial services space.
4. Balanced Approach to Growth: Jefferies notes that JFS is taking a balanced approach to its growth strategy, ensuring a measured and sustainable expansion.
5. Limited Risk for Competitors: Despite initial concerns about increased competition from JFS, Jefferies sees limited risk for established players like Bajaj Finance Ltd and banks. This suggests that JFS’s growth is not perceived as a significant threat to the existing market dynamics.

JFS Management Sees Large Lending Opportunity with a Calibrated Approach to Unsecured Lending. Jio Financial to Prioritize Secured Products, Including Device-as-a-Service (DaaS), Supply Chain Financing, Loan Against Shares, and Home Loans, as Highlighted in Short Investor Call by Jefferies.

Jefferies: JFS Completes Capability Building for Unsecured Personal Loans and Consumer Durable Loans with Established Risk and Underwriting Models.

Jefferies Sets Rs 9,470 Target Price for Bajaj Finance, Values Standalone Entity at 5.4x March 2026 Price to Book Value. No Specific Target for JFS, Suggests Rs 3,125 for Reliance Industries Ltd. Jio Financial Shares Down 5%, Bajaj Finance Up 0.5% in Tuesday’s Trade.

Jefferies Sets Rs 9,470 Target Price for Bajaj Finance, Values Standalone Entity at 5.4x March 2026 Price to Book Value. No Specific Target for JFS, Suggests Rs 3,125 for Reliance Industries Ltd. Jio Financial Shares Down 5%, Bajaj Finance Up 0.5% in Tuesday’s Trade.

Jefferies Highlights JFS’s Strategic Moves: Applies for Asset Management License with BlackRock, Files for Conversion to CIC, Establishes Leasing Operations through 100% Subsidiary JIASL.