PB Fintech shares gain over 4% as Q2 loss narrows to Rs 21 crore

Shares of PB Fintech, the parent company of PolicyBazaar and PaisaBazaar, gained as much as 4.55 per cent to the day’s high of Rs 583 in Monday’s trade (November 6). The stock witnessed sharp gains after the net loss at the firm for the September quarter came in sharply lower on a year-on-year (YoY) basis to Rs 21 crore. The figure was Rs 187 crore in the corresponding quarter of the previous fiscal.

The losses witnessed a steep decline on the back of robust growth in renewal rates as well as contribution margins during the reporting quarter.

“Our renewal/trail revenue is at an annualised run rate (ARR) of Rs 436 crore, up from Rs 294 crore last year in the same quarter. This typically operates at over 85 per cent margins and is a significant source of profit growth,” the firm said in the regulatory filing.

Nevertheless, on a sequential basis, net loss at the company recorded a steep surge of 75 per cent from Rs 12 crore reported in the quarter ended June 30. The losses mounted QoQ as the company’s core business EBITDA took a hit in the reporting quarter.

Brokerages’ call on PB Fintech

Global brokerage Citi has maintained a ‘buy’ rating on the counter with a raised target price of Rs 1,035. Morgan Stanley, on the other hand, has retained its ‘Overweight’ call with a target price of Rs 910.

PB Fintech’s share price performance 

Listed around two years ago in November 2021, the stock, as against its IPO price of Rs 980, has given a negative return to the tune of 26 per cent.

However, over the last one year, the stock has generated 91.6 per cent returns for its investors.

The consensus recommendation on the counter from 15 analysts is 'Hold', Trendlyne data shows.

About PB Fintech

PB Fintech, with a m-cap of Rs 32,809 crore, is a mid-cap company. The company offers online services in the areas of lending and insurance by leveraging the power of technology, data, and innovation.