Priya Patel
TLDR:
Shares of PB Fintech have rallied 15% to hit a new 52-week high, surpassing its IPO price after two years. The company reported a net profit of Rs 37.2 crore in the December 2023 quarter, compared to a net loss of Rs 87.3 crore the previous year. PB Fintech’s revenue from operations grew 43% year-on-year to Rs 871 crore in Q3FY24. Brokerage firms have mixed views on the stock, with some believing that valuations are stretched.
Shares of PB Fintech surged as much as 15% during the trading session on Wednesday after reporting its first quarterly profit in the December 2023 quarter. The company recorded a net profit of Rs 37.2 crore for the quarter, compared to a net loss of Rs 87.3 crore the previous year. This positive result has driven the stock to rally and surpass its IPO price after two years. PB Fintech’s revenue from operations also registered a healthy growth of 43% year-on-year to Rs 871 crore in Q3FY24. Revenue from its core business platforms, PolicyBazaar and PaisaBazaar, grew 39% to Rs 593 crore. The company’s performance has exceeded the majority of target prices given by brokerage firms.
However, some analysts believe that the stock’s valuations are stretched, with the majority of the positives already priced in. Nevertheless, there are a few brokerages that have raised their target prices on the stock. Kotak Institutional Equities values the stock at Rs 950 apiece, while JM Financial maintains a ‘buy’ rating with an unchanged target price of Rs 1,010. Citibank has raised its target price to Rs 1,150 and BofA Securities maintains a ‘buy’ tag with a target price of Rs 995.
Despite mixed views from brokerages, PB Fintech remains optimistic about its future. The company aims to achieve a net profit of Rs 1,000 crore in FY27 and has already delivered on the promise of profitability with a net profit of Rs 4.2 crore in 9MFY24. The management believes there is a strong possibility of positive surprises in the future.
