PB Fintech: Up over 140% in 2024 so far, on track to hit ₹2,200 in near term, says analyst

Actions of PB Fintechthe parent company of Policy Bazaar and Paisa Bazaar, has been on a remarkable upward trajectory in recent months, regularly breaking records and delivering impressive returns to shareholders.

The stock began its steady climb in January, when it surpassed its IPO price for the first time in two years, and has since made significant progress on Dalal Street. Over the course of this year, stocks went from ₹794 each at their current price of ₹1,931, reflecting an impressive gain of 144 percent.

In particular, the The stock posted gains in 8 out of 9 months, including September, with January seeing the biggest monthly increase of 26.14 percent.followed by a 22 percent gain in August. This extraordinary rally brought the title closer to ₹2,000, while the market capitalization of the company is approaching ₹1 lakh crore milestone. It is currently ₹12,000 crores short of reaching the milestone.

At its current price, the stock is trading 97 percent higher than its IPO price of ₹980 each. In addition, since its historic low of ₹356 each in November 2022, PB Fintech soared 442 percent, reflecting the company’s strong performance and investor confidence.

The company provides integrated online marketing, IT consulting and support services, largely aimed at the financial services industry, including insurance. PB Fintech operates Policy Bazaar, India’s largest digital insurance marketplace, and Paisa Bazaar, which provides services related to loan products.

It plans to expand its offerings with the launch of PB Money, a personal finance management platform that will help users manage payments, investments and insurance. The launch is planned for the second quarter.

As of March 31, 2024, Policy Bazaar had over 77.3 million registered consumers, with 16.6 million unique buyers purchasing a total of of 42.1 million contracts, or an average of 2.5 contracts per customer. Meanwhile, Paisa Bazaar serves 43.4 million consumers who have accessed their free credit score, representing 15% of active credit score users in India.

The company had established 53 partnerships with insurers and over 65 lending collaborations by the end of FY24, strengthening its dominant position in the industry.

In its recent report, global brokerage firm Jefferies highlighted that digital brokers like PB Fintech are benefiting from growing insurance penetration and growing consumer preference for online channels. As the operator of India’s largest online insurance platform, with over 90% market share, PB Fintech is expected to achieve a premium CAGR of 30% between FY25 and FY27E. Additionally, according to Jefferies, strong operating leverage in its renewal portfolio could generate 5x EBITDA growth.

PB Fintech ready to strike ₹Zone 2500-2640

Riyank Arora, Technical Analyst at Mehta Equities, said: “PB Fintech has maintained a steady upward trajectory over the past six months, surpassing its all-time high of ₹1470 set on its IPO day and is currently trading around ₹1930.”

“The technical structure suggests strong support for ₹1,680, with immediate support to ₹1,800, indicating limited downside risk. As bullish momentum persists, the stock is well placed to reach ₹2100 and ₹2200 in the short term. Based on Fibonacci retracements, longer-term bullish targets could extend to ₹2,500- ₹2,640, reinforcing the positive outlook,” added Riyank Arora.

Disclaimer: The opinions and recommendations given in this article are those of individual analysts. These do not represent the opinions of Mint. We advise investors to seek advice from certified experts before making any investment decisions.