PB Fintech Q4 Results: Shares Jump 5% as Earnings Beat Estimates; Here’s what the brokerages have to say
PB Fintech share price rose over 5% in early morning trading on Tuesday after the company reported better-than-expected earnings for the quarter ending March 2023. The Policybazaar parent company said it has turned break-even on operating levels for the quarter.
PB Fintech share price rose over 5% in early morning trading on Tuesday after the company reported better-than-expected earnings for the quarter ending March 2023. The Policybazaar parent company said it has turned break-even on operating levels for the quarter.
Policybazaar share price jumped as much as 5.70% to touch an intraday high of ₹654.35 apiece in early trade, on the BSE.
Policybazaar share price jumped as much as 5.70% to touch an intraday high of ₹654.35 apiece in early trade, on the BSE.
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PB Fintech’s consolidated net loss in Q4FY23 narrowed significantly to ₹NOK 8.95 million from ₹NOK 219.60 million in the same quarter a year ago.
The company’s operating income increased by 60.85% ₹NOK 869.09 million from ₹540.29 crore a year ago, the company said in an exchange filing.
The company said it broke even and consolidated adjusted EBITDA was on ₹28 crore for the quarter ended March 2023.
Analysts believe the company’s results were driven by both core insurance and credit business, along with lower losses in new initiatives.
Here’s what brokerages have to say about PB Fintech shares and Q4 earnings:
CLSA
PB Fintech’s Q4FY23 results were stronger than expected with a lower PBT loss. Income from the core insurance platform was in line with the PBT pace driven by lower overhead and slightly better credit and other income. The burn rate in new initiatives is stabilizing, overhead growth remains contained and we expect core revenue to see +30% cagr, CLSA said.
CLSA raised the target price on the share to ₹720 from ₹710 and maintained its Outperform recommendation.
Morgan Stanley
PB Fintech’s good results were led by both core insurance and credit businesses, as well as lower losses in new initiatives
Key positive catalysts for F24 include a likely increase in industry lifetime premiums, strong growth in savings for PBFI from a small base, and cost containment, the brokerage said.
Morgan Stanley maintained an Overweight rating on the stock and has a target price of ₹NOK 810 per share.
Citi
Citi has a Buy call on the stock and raised the target price to ₹820 from ₹800 previously.
PB Fintech reported strong 4Q with +3% EBITDA margin led by lower contribution loss on new initiatives, productivity improvement in core business, traction in renewals, one-off revenue from high-ticket sales and momentum at Paisa, Citi siad .
Revival of retail protection, effective rollout of offline strategy, continued investment in growing the claims engine and lagging benefits of revised EOM guidelines augur well, it added.
At 09:30, the shares of PB Fintech traded 1.01% higher at ₹625.30 apiece on BSE.
