PB Fintech is likely to make a one-time investment of $100 million to acquire a 30% stake in a new healthcare company after gaining approval from its board of directors.
Brokerage firm Bernstein maintained its “outperform” rating on PB Fintech with a price target of INR 1,750 per share.
PB Fintech reported a consolidated net profit of INR 59.98 Cr in Q1FY25 compared to a loss of INR 11.9 Cr in the year-ago quarter.
Shares of PB Fintech, the parent company of Politics Bazaar
and Paisabazaar, jumped over 4% to INR 1,715.40 each on the BSE in today’s (September 30) intraday session after the group’s Chairman and CEO Yashish Dahiya confirmed that the company was planning to foray into the healthcare space.
PB Fintech is likely to make a one-time investment of $100 million to acquire a 30% stake in a new healthcare company after getting approval from its board of directors, Dahiya told CNBC-TV18.
Explaining the reason behind the company’s decision to enter the healthcare sector, Dahiya reportedly said that a middle-class person cannot afford to spend INR 78,000 on a bed per night, adding that PB Fintech aims to bridge the gap between hospitals and insurance companies. .
Reports of PB Fintech’s plans to enter the healthcare sector surfaced last week. In a September 27 exchange filing, it was noted that Dahiya mentioned during the last analyst call that the company was exploring plans to enter the healthcare market.
PB Fintech has delivered exceptional returns to investors since its public listing in 2021. The stock has surged over 67% from its issue price of INR 950 per share and 42% from its listing price of INR 1,150 each. Since the start of the year, it has climbed more than 107%.
Last week, brokerage Bernstein maintained its “outperform” rating on PB Fintech with a price target of INR 1,750 per share. This implies an upside potential of nearly 7% from the stock’s previous close.
The brokerage noted that investors are bullish on the stock due to its strong growth, strong business model and cash generation.
This optimism is not without reason. PB Fintech reported its third consecutive profitable quarter in the April-June period.
The company recorded a consolidated net profit of INR 59.98 Cr during the June quarter (Q1) of the financial year 2024-25 (FY25), compared to a loss of INR 11.9 Cr during the quarter of 2024-25 (FY25). previous year.
This recovery is largely explained by robust growth in all business segments.