BackPolicybazaar shares surge. 'On course to profitability', say analysts post PB Fintech's strong Q3 results
PB Fintech (Policybazaar) shares surged more than 2% to ₹545 apiece on the BSE in Monday's trading session
PremiumShares of PB Fintech Ltd (Policybazaar) surged more than 2% to ₹545 apiece on the BSE in Monday's trading session after the company's net loss narrowed to ₹87 crore during the third quarter ended December 2022 as compared to ₹298 crore loss in the year ago period. Its revenue from operations rose 66% year-on-year (YoY) to ₹610 crore.
“PB Fintech (PB) reported a strong set of Q3FY23 numbers as premium throughput increased 70.3% YoY. This largely drove a 66.1% YoY jump in revenue and also EBITDA loss reduction to ₹1.33 bn (from ₹3.17 bn YoY). Adj. EBITDA margin improved in existing/new initiatives segments to 6.1%/(29.2)% as the company is focused on improving productivity in the core insurance platform and new initiatives while building trail revenues in the credit business," said brokerage Nuvama Research who sees the company on the course to profitability.
Given its market share of 90%-plus in online insurance sales and a growing offline presence, PB is poised to post strong sales, as per the brokerage which has Hold rating on Policybazaar shares with a target price of ₹550. “Management expects revenues/margins to rise further as agent productivity rises and benefits of appointments channel are realised. They hinted at a sharp profitability uptick in Q4."
"In the series of strong results across FY23, PB Fintech reported another quarter of robust numbers. PB Fintech has consistently beat JMFe over the past 3 quarters and we have raised our revenue forecasts with higher profitability to account for the same. While the company has an unparalleled proposition in insurance, credit business is also growing strongly and could generate singificant investor value. Key Risk: Potential regulatory headwinds from Bima Sugam or from finance ministry’s taxation regulations," said another brokerage JM Financial which has maintained Buy rating on the stock with a target price of ₹950.
The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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