PB Fintech (NSE: POLICYBZR ) adds INR 40 billion to its market cap in the last 7 days, even as investors from a year ago are still down 13%

This month we saw PB Fintech Limited (NSE:POLICYBZR) up a whopping 42%. But there is minimal compensation for the underdevelopment of the share price in the past year. In fact, the price has fallen 13% in a year, falling below the return you can get from investing in an index fund.

Although the stock is up 19% in the past week, but long-term shareholders are still in the red, let’s see what the fundamentals can tell us.

See our latest analysis for PB Fintech

Because PB Fintech ran a loss for the past twelve months, we believe the market is likely to be more focused on revenue and revenue growth, at least for now. In general, unprofitable companies are expected to grow earnings every year, and at a good clip. As you can imagine, rapid revenue growth, when sustained, often leads to rapid profit growth.

In the last year, PB Fintech saw its turnover grow by 93%. That’s a strong result that’s better than most other loss-making companies. The share price drop of 13% over twelve months would be considered disappointing by many, so you could argue that the company is getting little credit for its impressive revenue growth. Prima facie, such revenue growth should be a good thing, so it’s worth checking to see if the losses have stabilised. Our brains have evolved to think linearly, so there is value in learning to recognize exponential growth. We are in some ways simply the wisest of the apes.

The company’s revenue and earnings (over time) are depicted in the image below (click to see the exact figures).

PB Fintech is a well-known share, with a lot of analyst coverage, which suggests some insight into future growth. If you are thinking of buying or selling PB Fintech stock, you should check this out free report showing the analyst’s consensus estimates of future earnings.

Another perspective

Given that the market gained 2.9% in the past year, PB Fintech shareholders may be annoyed that they lost 13%. But remember that even the best stocks will sometimes underperform the market over a twelve-month period. Putting aside the last twelve months, it is good to see that the share price has declined by 25% in the last ninety days. This could just be a bounce because the sales were too aggressive, but fingers crossed that it’s the start of a new trend. You may want to consider this data-rich visualization of earnings, income and cash flow.

We will like PB Fintech better if we see some big insider buying. While we wait, check this out free list of growing companies with significant recent insider buys.

Please note that the market returns given in this article reflect the market-weighted average return for shares currently traded on IN exchanges.

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This article by Simply Wall St is general. We provide commentary based on historical data and analyst forecasts only using an objective methodology, and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares, and does not take into account your goals or your financial situation. We aim to provide you with long-term focused analysis driven by fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned.