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Policybazaar owner PB Fintech shares up 3% on posting Q3 nos; Buy or sell?

In Q3, the company posted an 88 per cent rise in consolidated net profit at Rs 71.54 crore as compared to Rs 38.05 crore a year ago

Market, BSE, NSE, NIfty, Stock Market, investment

Sirali Gupta Mumbai

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Shares on PB Fintech, which owns PolicyBazaar, gained 3 per cent in trade on Friday (January 31, 2024), logging an intraday high at Rs 1,703 per share. The stock surged after the company posted its Q3 results.
 
Around 9:43 AM, PB Fintech share price was up 2.65 per cent at 1,695.7 per share. In comparison, BSE Sensex was up 0.15 per cent at 76,873.67. The market capitalisation of the company stood at Rs 77,559.37 crore. The 52-week high of the stock was at Rs 2,254.95 per share and 52-week low was at Rs 851.75 per share.
 
PB Fintech reported its third quarter (Q3FY25) numbers on January 30, 2025, after market hours. In Q3, the company posted an 88 per cent rise in consolidated net profit at Rs 71.54 crore as compared to Rs 38.05 crore a year ago. The company's revenue for the quarter under review stood at Rs 1,291.62 crore, up 48.3 per cent, from Rs 870.89 crore a year ago. 
 

What brokerages recommend on PB Fintech post Q3? 

Nuvama Institutional Equities retained 'Reduce' rating and raised its target price to Rs 1,510 per share from Rs 1,400. 
 
The brokerage also lowered its FY25E/26E/27E adjusted Earnings before interest, tax, depreciation and amortisation (Ebitda) by 9.6 per cent/0.8 per cent/3.5 per cent.  
 
It anticipates considerable improvement in market share and profitability of the company. For term and health businesses analysts at Nuvama are modelling market share improvement by 2,157 basis points (bps) and 2,306 bps over FY24 to FY35E to 50.4 per cent and 40.9 per cent, respectively. These segments along with other businesses are likely to drive FY24–35E revenue compound annual growth rate (CAGR) of 26.8 per cent.  
JM Financial reiterated ‘Sell’ with March 2026 target price of Rs 1,470 per share. The brokerage believes with rising competitive
intensity from InsuranceDekho’s fundraise, Paisabazaar struggles, PB Health distraction and impending Bima Sugam launch, we believe risk-reward ratio continues to be unfavourable for PB Fintech.
 
Macquarie has maintained an 'Underperform' rating with a target of Rs 1,530 per share. HSBC iterated 'Buy' on the stock but cut the target to Rs 2,530 per share from Rs 2,550. Citi also maintained 'Buy' and raised the target price to Rs 2,150 per share from Rs 2,000.  
 
Bernstein has maintained an' Outperform' rating with a target of Rs 2,030 per share. Jefferies has also maintained 'Buy' for a target of Rs 2,000 per share.   ALSO READ: Analysts cautious on Bank of Baroda after mixed Q3; share price falls 5%
 
Morgan Stanley continued with 'Underperform' rating for a target of Rs 1,400 per share. CLSA has maintained an 'Accumulate' rating and has cut the target to Rs 1,860 per share from Rs 1,900. 
 
In one year, PB Fintech shares have gained 64.7 per cent against Sensex's rise of 7 per cent. 

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First Published: Jan 31 2025 | 11:07 AM IST

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