PB Fintech Shares Jump 3.2% Intraday After Posting Q2 Profit

SUMMARY

Policybazaar’s parent 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 period

For the day, more than 33.35 Lakh shares of PB Fintech changed hands, and the company’s market capitalisation stood at INR 75,864.77 Cr (around $899.87 Mn)

It is pertinent to note that Morgan Stanley has also maintained its equal-weight rating on PB Fintech, setting a target price (TP) of INR 1,375

Shares of PB Fintech jumped as much as 3.2% during the intraday trading today (November 6) to INR 1,694.30 apiece on the BSE after the company announced its fourth consecutive quarterly profit.

Policybazaar’s parent 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 period.

For the day, more than 33.35 Lakh shares of PB Fintech changed hands, and the company’s market capitalisation stood at INR 75,864.77 Cr (around $899.87 Mn).

It is pertinent to note that Morgan Stanley has also maintained its equal-weight rating on PB Fintech, setting a target price (TP) of INR 1,375. This TP marks a potential downside of 17.3% from PB Fintech’s today’s closing price of INR 1663.30 on the BSE.

For Q2 FY25, PB Fintech’s operating revenue was at INR 1,167.2 Cr, marking a jump of over 43% on year-on-year (YoY) basis and 15% on a quarter-on-quarter basis.

The topline climb for the quarter came on the back of consistent revenue growth and improving margins with the core online business, which includes PolicyBazaar and Paisabazaar, contributing INR 767 Cr (up 28% YoY) to the group’s operating revenue.

Last month, global brokerage firm Jefferies reaffirmed its ‘buy’ call on PB Fintech with a price target of INR 1,800.

Apart from the healthy results, a lot is happening at the company lately. PB Fintech Group chairman and CEO Yashish Dahiya in September outlined that the company is mulling making a one-time investment of $100 Mn for a 30% stake in a new healthcare venture. Following this, the brokerage firm Bernstein expressed caution over the plans around its venture into the healthcare sector.

In the same month of September, it allotted 75,760 equity shares to eligible employees under its employee stock option plan (ESOP).

In August, Chinese tech giant Tencent sold 97 Lakh shares of PB Fintech via multiple open market transactions for a cumulative sum of INR 1,668.1 Cr.