One of the midcap stocks operating in an online platform for insurance and lending products, primarily through its brands Policybazaar and Paisabazaar, facilitating comparisons and purchases for consumers. The stock jumped 5.86 percent after Citi gave a target price of Rs. 2000, which has an upside potential of 24.27 percent.
Stock Price Movement
In Thursday’s trading session, PB Fintech Limited’s share jumped to an intraday high of 5.86 percent from the previous close of Rs. 1,609.45. The stock opened at Rs. 1,610 and is currently trading at Rs. 1,680.80, with a high of Rs. 1,703.85 and a low of Rs. 1,604.55. The market capitalization now stands at approximately Rs. 77,185.84 crore.
What is the news?
Citi has given a “buy” rating to PB Fintech Limited, with a target price of Rs 2,000. This target price reflects a 24.27 percent potential upside from the stock’s previous day close of Rs. 1,609.45.
Target Rational
Citi is confident in PB Fintech’s ability to scale its life savings and high-ticket retail health business through its effective hybrid/phy-gital strategy. The company’s strong growth prospects in retail protection, health, and savings, along with its Rs. 1,000 crore net profit target for FY2027, enhance investor confidence.
Additionally, Citi believes that positive management insights on productivity and margins could further boost sentiment and drive future growth.
Business Operation
PB Fintech’s Health and Life insurance business grew by 69% in new premiums, and new projects grew 87% year-over-year. However, management expects long-term growth to be around 30%. The company’s operating costs increased by $4-5 million due to heavy investment in Policybazaar.
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New Projects and Initiatives
The company is exploring the PB Health initiative, aimed at enhancing the claims experience and driving insurance growth. Management anticipates that if successful, this project could result in a 5% faster growth rate in the insurance sector over the next decade, though it has yet to be established.
Future Outlook
The compan focuses on sustainable growth and long-term profitability, with credit business margins similar to insurance, though undisclosed. The company targets 30% long-term
growth in new business, driven by investments in operations and customer experience, ensuring sustained expansion and market leadership.
Recent quarter results
PB Fintech Limited’s revenue has increased from Rs. 812 crore in Q2 FY24 to Rs. 1,167 crore in Q2 FY25, which has grown by 43.72 percent. The net profit of the company has converted net loss into net profit, from Rs. -21 crore in Q2 FY24 to Rs.51 crore in Q2 FY25.
Written By – Nikhil Naik
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