Jio Financial: Rs 320 crore into Jio Allianz insurance JV

Jio Financial Services Limited put Rs 320.05 crore into Jio Allianz General Insurance on 30 September, and Allianz Europe B.V. put in an identical sum. The Rs 640.10 crore is fresh capital for the joint venture, which is 50:50. Q1 FY27 numbers (consolidated, unaudited): Net profit: Rs 830.25 crore, against Rs 324.66 crore a year earlier Revenue from operations: Rs 2,004.47 crore, against Rs 612.46 crore Profit before tax: Rs 969.68 crore, against Rs 418.97 crore The infusion is cash out with no return visible yet. The joint venture’s loss is not in any source I could reach; the Q2 release is the first print that can show it. Jio Financial Services [][***** shares closed at Rs 210.68 on 9 October on StockGro (NSE Rs 214.62), up 1.4 percent on StockGro that day. The NSE price is 2.9 percent above the 52-week low of Rs 208.50 and 32.3 percent below the high of Rs 316.85. The stock is down 28 percent over a year, at about 1.0 times book on StockGro. Its P/E of 65 to 68 rests on a thin earnings base. My view: hold for holders, no fresh money before 15 October. The book multiple is the only cheap number I can source. Q1 profit is stated two ways in the sources, Rs 830.25 crore and Rs 740.22 crore. I want three things in the Q2 release: the joint venture’s loss and how the Rs 320 crore is carried, one settled Q1 profit figure, and Q2 profit above Q1 without a one-off. Without all three, no fresh money. My exit is a close below Rs 208.50, the NSE 52-week low. I watch the board meeting on Thursday 15 October. Disclosure: Vijay Kumar Gupta, SEBI Registered Research Analyst, INH000020226, Vijay Gupta Advisory. SEBI registration and NISM certification do not guarantee performance or assure returns. Securities markets are subject to market risks. No holdings in the subject company.