PB Fintech share price surged over 4% on Tuesday to hit a 52-week high of ₹731.65 apiece on the BSE, extending the rally for the second consecutive day after the company’s management shared a strong business growth plan in its first virtual meeting with analysts since listing.
The parent company of Policybazaar, PB Fintech highlighted the operating efficiencies, growth in underlying markets and market share gains that will help in improving operational performance in the upcoming years.
It highlighted how it uses data and technology to find the market gaps, help in product innovation along with partners, provide superior customer profiles to partners and improve customer experience through claim support and aftersales service.
Brokerages maintained their bullish view on the company after the management’s business plans.
IIFL Securities forecasts PB Fintech to deliver 29% revenue Cagr over FY23-26; and reach 15% Ebitda margins by FY26, driven by strong growth in underlying markets, share gains and operating leverage.
The brokerage maintains a ‘Buy’ call on the stock with 12-month target price of ₹750 per share.
Around 80% of Policybazaar’s traffic comes organically, which provides it with highintent customer data.
“This data helps Policybazaar offer innovative and customised products, which expands the addressable market and increases insurance penetration in India,” IIFL Securities said in a note.
Examples of previously underserved customer segments in term insurance that Policybazaar has tapped successfully include housewives, NRIs and the underprivileged. Similarly, in health insurance, it has partnered with insurance partners to create multiple product variants catering to different segments of customers.
Moreover, Policybazaar’s extensive use of technology and in-house risk management process help it provide superior customer profiles to its insurance partners. It has the best mortality experience amongst all channels, which translates into cheaper prices for customers and better conversions, it added.
Additionally, a large and underpenetrated Digital Lending industry provides a long runway for Paisabazaar.
Kotak Institutional Equities said PB Fintech exhibited its insure-tech capabilities in its virtual analyst meeting. It has an “Add" rating on the stock with a target price of ₹725 per share.
Global brokerage CLSA maintained its Outperform rating on PB Fintech with a target price of ₹720 per share.
At 1:05 PM, the shares of PB Fintech were trading 2.66% higher at ₹717.00 apiece on the BSE.
