Amid a choppy session on Friday, benchmark indices recovered most of their losses, tracking mixed moves across global markets. Worries remained about the impact of aggressive hikes in benchmark interest rates on economic growth.
The BSE Sensex settled at 61,663 points and the NSE Nifty 50 settled at 18,307 points, slightly in the red. However, on a year-to-date basis, both indices have gained about 4%. While a few stocks outdid the index on a year-to-date basis, there are companies that were beaten down and analysts see a huge upside in them.
PB Fintech Ltd
Popularly known as Policybazaar, the shares of PB Fintech settled at ₹ 401.80 apiece,up 8.14%. On a year to date basis, its shares have lost 57.81% and are deep in the red. The company’s share price is falling as the lock-in period for pre IPO investors has come to an end. These investors are now free to sell their shares, leading to a selling pressure on the stock.
Foreign brokerage CLSA initiated coverage on the stock and said that PB Fintech is among India’s leading direct-to-consumer insurance aggregators. Its moats include a robust customer funnel, a high share of direct customer traffic and strong underwriting to insurers.
The brokerage added that it expects an above 10% CAGR in the broader insurance industry over 15 years and that it sees PB Fintech as a key beneficiary of the growing share of online insurance distribution.
It has a buy rating on the stock with a target price of ₹ 600, indicating an upside of 49.32% as compared to its share price.
PB Fintech is India’s largest online platform for insurance and lending products. The company, through its flagship brands Policybazaar and Paisabazaar, provides convenient access to insurance, credit and other financial products.
Natco Pharma Ltd
The shares of Natco Pharma closed marginally higher at ₹ 575.35 apiece, up 0.97% on Friday. On a year to date basis, its share price has declined by 37.53%.The company recently missed Q2 expectations.
The drugmaker reported a 12% decline in its net profit to ₹ 56.8 crores in the July to September quarter, even though its total revenue rose 9% to ₹ 452.6 crore.
ICICI Securities has a buy rating on the stock with a target price of ₹ 816.00. This translates to an upside of 41.82% as compared to its share price.
The brokerage said that the company has a robust pipeline of multiple limited-competition products such as Imbruvica, Aubagio, Kyprolis and Pomalyst. This will continue to drive growth. In addition, its domestic business is likely to be propelled by new launches and potential inorganic opportunities.
NATCO Pharma is a vertically integrated, research and development-focused pharmaceutical company. It develops, manufactures and markets for niche therapeutic areas. It has established its presence in finished dosage formulations (“FDF”), active pharmaceutical ingredients (“APIs”), and contract manufacturing business.
Written by Simran Bafna
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