Bulk Deals: FII, DII buy stakes in Policybazaar operator PB Fintech; Brokerage sees counter to double on long-term basis

For the second straight session, Capri Global Holdings Private Limited picked up additional stakes in Policybazaar operator PB Fintech on Thursday, similarly, WF Asian Smaller Companies Fund also bought shares in the company

WF Asian Smaller Companies Fund, which is a hedge fund managed by Hong-Kong-based Ward Ferry Management, bought acquired a total of 67,75,073 shares in the company at an average price of Rs 400 apiece for a total of Rs 271 crore.

While Capri Global Holdings Private bought a total of 6,06,043 shares in the company at an average price of Rs 258.47 apiece for a total of over Rs 15.5 crore.

As of the quarter ended September, WF Asian Smaller Companies Fund owned a 1.32 per cent stake in the company, shareholding data showed with the bourses. Last week, WF Asian Reconnaissance Fund purchased 50 lakh shares of the company.

On Thursday, shares of PB Fintech closed 10.06 per cent higher at Rs 440.70 apiece on NSE and Rs 432.20 per scrip on BSE as compared to over 1 per cent rise in the Nifty and Sensex today.

Domestic brokerage firm JM Financial in its report on PB Fintech said, “We expect the company to achieve profitability in the fourth quarter of the financial year 2022-23 as Q4 is seasonally a very strong quarter for insurance.”

However, the brokerage is expecting losses again in the first half of the FY24 with large enough profits in the second half of FY24 to ensure that the company generates 0.5% adj. EBITDA margin in FY24.

JM Financial maintains a Buy rating on the stock with a target of Rs 910 apiece, implying over 108 per cent upside in the stock.

With PTI Inputs