Invest in PB Fintech Limited a mid-cap stocks now for a potential upside of up to 24%
Invest in PB Fintech Limited a midcap stock that operates an online platform for insurance and lending products, primarily through its brands Policybazaar and Paisabazaar. This platform facilitates comparisons and purchases for consumers. Recently, the stock saw a significant increase of 5.86 percent after Citi provided a target price of Rs. 2000, indicating a potential upside of 24.27 percent.
In Thursday’s trading session, PB Fintech Limited’s share price surged to an intraday high of 5.86 percent from the previous close of Rs. 1,609.45. The stock opened at Rs. 1,610 and is currently trading at Rs. 1,680.80, with a high of Rs. 1,703.85 and a low of Rs. 1,604.55. The market capitalization now stands at approximately Rs. 77,185.84 crore.
Citi has given a “buy” rating to PB Fintech Limited, with a target price of Rs. 2,000, representing a 24.27 percent potential upside from the previous day’s close. Citi is confident in PB Fintech’s ability to scale its life savings and high-ticket retail health business through its effective hybrid/phy-gital strategy. The company’s strong growth prospects in retail protection, health, and savings, along with its Rs. 1,000 crore net profit target for FY2027, enhance investor confidence.
Furthermore, Citi believes that positive management insights on productivity and margins could further boost sentiment and drive future growth. PB Fintech’s Health and Life insurance business experienced a 69% growth in new premiums, with new projects growing by 87% year-over-year. Management anticipates long-term growth to be around 30%, despite operating costs increasing by $4-5 million due to heavy investment in Policybazaar.
New Projects and Initiatives
Our company is currently exploring the PB Health initiative, which is designed to improve the claims experience and drive growth in the insurance sector. Management is optimistic that the successful implementation of this project could potentially lead to a 5% increase in the growth rate of the insurance industry over the next decade, although this has yet to be confirmed.
Future Outlook
Our company is committed to achieving sustainable growth and long-term profitability, with credit business margins comparable to those of the insurance sector, although specific details are not disclosed. We aim to achieve a 30% increase in new business growth in the long term, through strategic investments in operations and enhancing the customer experience. This will ensure continued expansion and solidify our position as a market leader.
Recent Quarter Results
PB Fintech Limited has seen a significant increase in revenue, rising from Rs. 812 crore in Q2 FY24 to Rs. 1,167 crore in Q2 FY25, representing a growth of 43.72 percent. Additionally, the company has successfully turned a net loss of Rs. -21 crore in Q2 FY24 into a net profit of Rs. 51 crore in Q2 FY25.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.