pb fintech stock price: PB Fintech shares down over 64% from high! Is there more pain going forward?
The stock fell above 0.6 percent to reach the lowest record of 521.35 Rs on BSE. With a market value of Rs 23,699 crore, the shares are traded below 5, 10, 20, 50 and 100 DMA.
The insurance and finance collector made a decent debut on Dalal Street. The certificate was listed at a premium of 17.34 per cent to Rs 1,150 on the NSE against the issue price of Rs 980.
Is there more pain going forward?
Manoj Dalmia founder and Director-Proficient Equities Limited said: “Even though revenues are increasing, operating profit is still negative. FIIs have also increased their holdings in the March quarter. Looking at the price action we can expect further sales to Rs 454, purchases are only proposed over Rs 628 , “he added.
“The valuations of the company have corrected significantly since the listing. But until the time we do not see operational profitability or a path towards the same, together with a consistent organic growth in the top line, there will be difficulties in gathering interest from retailers and institutional investors. “Wirth IRDA aims for 30-50 percent CAGR growth in gross written premiums for life insurance over the next 5 years, with the intention of increasing insurance penetration in India, technology-based platforms such as PB will play an important role in growth,” said Divam. Sharma, founder of Green Portfolio, SEBI Registered Portfolio Management Service Provider for ETMarkets.
“We also believe that the industry will go through a consolidation going forward, which will benefit PB. Investors should still skip investing in the stock until further notice and wait for the road to profitability before investing,” Sharma added.
“The stock looks good for long-term investors at these levels. One can buy this stock in the range of Rs 470 to 520 with a stop loss of Rs 444 and a target of Rs 750,” said Ravi Singhal, CEO, GCL.
Recently, Kotak Institutional Equities initiated coverage on PB Fintech with a target price of Rs 700 per share, which signals a 33.5 upside from the current market price. It believes that high multi-year growth will lead to consistent increases in market shares, and thus improve the unit economy and drive operational influence over time.
“Policybazaar’s dominant position (90% market share) in the electronic insurance market is driven by (1) its groundbreaking market position, industry-leading offerings, major brand investments that translate into strong brand recall, (2) a robust technological backbone, and (3) use of rich customer insight to improve the claims experience for its insurance partners and develop customized products, “added the brokerage house.
The global brokerage firm Morgan Stanley has a target of Rs 945 on PB Fintech, which is below the issue price. It believes that the company’s productivity goals are ready to improve. Domestic brokerage firm
finds the stock worth Rs 940.
PolicyBazaar reported an increase in losses to Rs 219.60 crore in the March quarter from Rs 64.38 crore in the quarter last year, although revenues doubled for the quarter to Rs 540.29 crore. However, losses were down from Rs 298 crore in the December quarter.
Earlier in February this year, Alok Bansal, co-founder of PB Fintech, had sold 28,57,820 shares in the company for Rs 236 crore.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
