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Business News/ Markets / Stock Markets/  PB Fintech stock crosses its IPO price after 2 years, gains 12.5% on robust Q3 results
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PB Fintech stock crosses its IPO price after 2 years, gains 12.5% on robust Q3 results

PB Fintech, the parent company of Policy Bazaar and Paisa Bazaar, saw its shares surpass the IPO price after a two-year period as investors responded positively to its strong Q3FY24 performance.

For the first nine months of FY24, its total operating revenue jumped to ₹2,348 crore, and the consolidated PAT improved by ₹482 crore to ₹4 crore. (Pixabay)Premium
For the first nine months of FY24, its total operating revenue jumped to 2,348 crore, and the consolidated PAT improved by 482 crore to 4 crore. (Pixabay)

PB Fintech, the parent company of Policy Bazaar and Paisa Bazaar, witnessed its shares surpass the IPO price apiece after two years as investors responded positively to the company's robust performance in Q3FY24.

The company released its December quarter results on Tuesday after market hours, showcasing a strong performance in its core business. Additionally, the company's new initiatives exhibited robust revenue growth.

The core online business witnessed significant growth, with new protection premiums (health insurance + term insurance) surging by 44% and the core operating revenue reaching 593 crore, up 39% YoY. Notably, the contribution margin improved to 44% in Q3, and adjusted EBITDA showed an increase to 76 crore, with the margin expanding to 13%.

Also Read: Also Read: Larsen & Toubro share price declines 5% post Q3 earnings

Its adjusted EBITDA for the last 6 quarters has improved by 50 crore each quarter, in line with the company's annual guidance of incremental 200 crore adjusted EBITDA.

The overall revenue from operations during the third quarter of the current fiscal year improved by 43% YoY to 871 crore. Additionally, the company achieved a positive adjusted EBITDA margin of 4%, a noteworthy improvement from the -5% margin recorded in the same period last year.

On the bottom line, the company turned a net profit in Q3 two quarters ahead of its estimates. In Q3, it reported a net profit of 37 crore, a significant improvement compared to the net loss of 87 crore in the corresponding quarter of the previous fiscal, marking an improvement of 124 crore.

For the first nine months of FY24, its total operating revenue jumped to 2,348 crore, and the consolidated PAT improved by 482 crore to 4 crore.

Buoyed by these impressive Q3 results, the stock commenced today's trading session with a notable gap-up, opening at 963.95, a 6.20% increase from the previous close of 907.65 apiece. The upward momentum continued, and in early trade, the stock surpassed its IPO price of 980, reaching a two-year high of 1,020, representing a gain of 12.5%.

Stock Price History

PB Fintech is engaged in providing integrated online marketing, IT consulting, and support services largely for the financial services industry, including insurance. PB Fintech operates PolicyBazaar, India's largest digital insurance marketplace, and PaisaBazaar, which provides services related to lending products.

The insurance and financial aggregator made a decent debut on the exchanges on November 15, 2021, listing at a premium of 22.7% at 1,202 apiece as against the issue price of 980.

However, within two months of its listing, the stock dropped below its IPO price. Over the subsequent months, it faced challenges, sliding below the 500 mark and reaching a record low of 356 apiece in November 2022.

As the company's financials started improving, the stock began a recovery, and since February 2023, it has consistently followed an upward trend, leading to its current achievement of surpassing the IPO price today.

Disclaimer: We advise investors to check with certified experts before making any investment decisions.

 

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Published: 31 Jan 2024, 09:57 AM IST
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