PB Fintech Shares Dip 6.7% After Morgan Stanley Downgrades To ‘Underweight’

PB Fintech Shares Dip 6.7% After Morgan Stanley Downgrades To ‘Underweight’

SUMMARY

However, the shares recovered later, trading 3.78% lower at INR 1,785.95 as of 10:52 AM

The dip follows a downgrade by brokerage firm Morgan Stanley, which assigned an 'underweight' rating to PB Fintech, citing lower-than-expected profit emergence and high stock valuations

Notably, the company’s shares have skyrocketed nearly 105.52% on a current market price basis over the past year

Shares of PB Fintech dipped as much as 6.7% to reach INR 1,730.35 during the intraday trading on the BSE today (January 13).

However, the shares recovered later, trading 3.78% lower at INR 1,785.95 as of 10:52 AM. The company’s market capitalisation stood at INR 81,739.01 Cr at the aforementioned time, with as many as 10 Lakh shares having changed hands by then.

The dip follows a downgrade by brokerage firm Morgan Stanley, which assigned an ‘underweight’ rating to PB Fintech, citing lower-than-expected profit emergence and high stock valuations. 

Notably, the company’s shares have skyrocketed nearly 105.52% on a current market price basis over the past year.

This marks a downgrade from the stock’s previous ‘equal-weight’ rating. Morgan Stanley has set a price target of INR 1,400 for the stock, representing a 14% downside from Friday’s closing price.

The downgrade comes after PB Fintech emerged as the second-biggest loser last week among 31 new-age tech stocks tracked by Inc42, with its shares dropping 16.20% weekly.

Earlier this month, on January 2, PB Fintech entered the healthcare segment through its new subsidiary, PB Healthcare Services Private Limited. Post that, its shares even touched a fresh all-time high of INR 2,254.95 on January 3.

On January 4, the company was also relieved of Commissioner of Income Tax-Appeal (CIT-A) imposed tax amounting to INR 166.12 Cr for the fiscal year 2015-16. 

It is pertinent to note that the company has been doing the diversification of its core financial services business lately. 

Last year, the company incorporated a subsidiary PB Pay as part of its plan to venture into the payment aggregator business.

Another of its subsidiaries, PB Financial Account Aggregator Private Limited (PBAA) received the account aggregator license from the Reserve Bank of India (RBI) in October 2024.

On the financial front, PB Fintech reported a consolidated net profit of INR 50.98 Cr in the second quarter (Q2) of the fiscal year 2024-25 (FY25) against a loss of INR 21.11 Cr in the year-ago quarter. 

Notably, this was the fourth consecutive profitable quarter for the company. During this period, revenue from operations jumped over 43% to INR 1,167.2 Cr in Q2 FY25 from INR 811.6 Cr in the year-ago period.

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PB Fintech Shares Dip 6.7% After Morgan Stanley Downgrades To ‘Underweight’-Inc42 Media
PB Fintech Shares Dip 6.7% After Morgan Stanley Downgrades To ‘Underweight’-Inc42 Media
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