PB Fintech Shares Rally Over 5% As Jefferies Reaffirms ‘Buy’ Rating

Shares of insurtech major Policybazaar’s parent PB Fintech jumped over 5% to INR 1,701.25 apiece on the BSE during intraday trading today (October 1) after brokerage firm Jefferies reaffirmed its ‘buy’ call on PB Fintech. 

Jefferies has set a price target of INR 1,800, which implies an upside potential of over 11% from the stock’s previous close.

In a recent research note, analysts at Jefferies said that PB Fintech management’s clarification that the company is planning a one-time investment into a new healthcare venture addresses core concerns around its balance sheet remaining asset light.

According to Jefferies, PB Fintech will likely have limited liability in this investment, with the new healthcare venture expected to generate its own revenue sources.

This comes on the heels of reports that PB Fintech is considering making a foray into the healthcare space.

During a recent interaction with CNBC-TV18, chairman and Group CEO Yashish Dahiya said that the company is likely to make a one-time investment of $100 Mn to acquire a 25%-30% stake in a new healthcare company after getting approval from its board.

Last week, brokerage firm Bernstein maintained its ‘outperform’ rating on PB Fintech with a price target of INR 1,750 per share. 

PB Fintech reported its third consecutive profitable quarter in the April-June period. The company posted a consolidated net profit of INR 59.98 Cr in Q1 FY25, compared to a loss of INR 11.9 Cr in the same quarter last year. This turnaround was primarily driven by strong growth across its business segments.

PB Fintech, is an Indian fintech company that provides insurance and lending services through its brands PolicyBazaar and PaisaBazaar. Founded in 2008, the company went public with its IPO on November 15, 2021.

It is pertinent to note that a lot is happening at the company. Earlier this month, it allotted 75,760 equity shares to eligible employees under its employee stock option plan (ESOP).  

Last month, 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.