PolicyBazaar and PaisaBazaar parent company PB Fintech share price jumped 5.7% to Rs 654.35 today after the company’s net loss narrowed to Rs 8.9 crore in Q4FY23 as compared to Rs 220 crore in the same quarter last year. The stock has risen 4.4% in the past one month while it has fallen 11% in the last one year. The company in a stock exchange filing said that it has turned break even at the operating level for the quarter. The business growth in the fourth quarter was driven by renewal income, which is at an ARR (annual run rate) of Rs 388 crore-plus, and higher efficiency and growth in new business.
Stock Call: Should you buy, sell or hold PB Fintech shares?
Nuvama: Hold – Target Price: Rs 595 (9% downside)
“Following PB’s strong earnings, we are tweaking near-term earnings estimates while keeping ‘HOLD’ with a DCF-based target price of Rs 595. Key risks include a sharp slowdown in premium growth, agent misselling, intensifying competition, increased investment requirements in business impacting profitability, and any regulatory changes,” said analysts at Nuvama Institutional Equities.
“PB Fintech is now the most dominant insurance distributor in the country with our estimates suggesting Policybazaar accounting for ~42% of online insurance distribution while also becoming the largest PoSP player. We have maintained our revenue forecasts for the company and brought forward PAT level profitability to FY24 itself, resulting in a DCF-based target price of Rs 980,” said analysts at JM Financial.
Kotak: Add – Fair Value: Rs 725 (10.7% upside)
“Overall growth momentum continues with 4QFY23, augmented by industry tailwinds. Lower contribution losses in its new initiatives and improving leverage will drive profitability over the medium term. After the sharp stock price appreciation, we revise our rating to ADD from BUY with an FV of Rs 725 (up from Rs 700),” said analysts at Kotak Institutional Equities.