New Age Tech company PB Fintech’s share price increased by 26.80% since the beginning of February from ₹ 402.45 to ₹ 510.20 apiece.
The company’s share price was continuously declining after it reached a 52-week high of ₹ 825.05 apiece. However, it has gained momentum since the start of February on the back of its improved results for the third quarter (October to December 2022).
PB Fintech is the parent company of PolicyBazaar and PaisaBazaar. It provides integrated online marketing and IT consulting and support services, largely for the financial services industry, including insurance.
Its net loss narrowed to ₹87 crores as compared to ₹298 crores in the corresponding quarter of last year when it had posted a net loss of ₹ 187 crores. Its revenue from operations surged to ₹ 610 crores, indicating an increase of ₹ 66.21% from ₹ 367 crores in the corresponding quarter of last year. The operating expenses also came in lower at ₹744 crores in the latest quarter, down from ₹800 crores in the same quarter last year.
“Our New Initiatives revenue has grown 3.7x, while the adjusted EBITDA loss is roughly the same this quarter as compared to the same period last year. This explains that we have grown while building efficiencies,” the company said in an exchange filing.
Following the company’s performance in the third quarter, Citi has a buy rating on the shares of the insurance aggregator with a target of ₹ 800 apiece, which indicates an upside of 56.80% as compared to the share price of ₹ 510.20.
Meanwhile, Morgan Stanley has an overweight rating on its shares with a target price of ₹ 705, which translates to an upside of 38.18% as compared to the share price of ₹ 510.20.
Written by Simran Bafna
