Policybazaar shares rise. “On course for profitability”, say analysts after PB Fintech’s strong results for the third quarter
Shares in PB Fintech Ltd (Policybazaar) rose more than 2% more ₹545 apiece on the BSE in Monday’s trade after the company’s net loss narrowed to ₹87 crore during the third quarter ended December 2022 as compared to ₹Loss of NOK 298 million last year. Operating income increased by 66% year-on-year (YoY) to ₹NOK 610 million.
Shares in PB Fintech Ltd (Policybazaar) rose more than 2% more ₹545 apiece on the BSE in Monday’s trade after the company’s net loss narrowed to ₹87 crore during the third quarter ended December 2022 as compared to ₹Loss of NOK 298 million last year. Operating income increased by 66% year-on-year (YoY) to ₹NOK 610 million.
“PB Fintech (PB) reported a strong set of Q3FY23 numbers as premium throughput grew 70.3% y-o-y. This largely led to a 66.1% jump in y-o-y revenue and reduction in EBITDA loss ₹1.33 billion (from ₹3.17 billion years). Adj. EBITDA margin improved in existing/new initiative segments to 6.1%/(29.2)% as the company focuses on improving productivity in the core insurance platform and new initiatives while building track revenue in the credit business,” said brokerage Nuvama Research which sees that company on a course towards profitability.
“PB Fintech (PB) reported a strong set of Q3FY23 numbers as premium throughput grew 70.3% y-o-y. This largely led to a 66.1% jump in y-o-y revenue and reduction in EBITDA loss ₹1.33 billion (from ₹3.17 billion years). Adj. EBITDA margin improved in existing/new initiative segments to 6.1%/(29.2)% as the company focuses on improving productivity in the core insurance platform and new initiatives while building track revenue in the credit business,” said brokerage Nuvama Research which sees that company on a course towards profitability.
Given its 90% plus market share in online insurance sales and a growing offline presence, PB is poised to deliver strong sales, according to the brokerage which has a Hold rating on Policybazaar shares with a target price of ₹550. “Management expects revenues/margins to increase further as agent productivity increases and the benefits of the deal channel are realized. They hinted at a sharp increase in profitability in the fourth quarter.”
Given its 90% plus market share in online insurance sales and a growing offline presence, PB is poised to deliver strong sales, according to the brokerage which has a Hold rating on Policybazaar shares with a target price of ₹550. “Management expects revenues/margins to increase further as agent productivity increases and the benefits of the deal channel are realized. They hinted at a sharp increase in profitability in the fourth quarter.”
“In a string of strong results throughout FY23, PB Fintech reported another quarter of robust numbers. PB Fintech has consistently beaten JMFe for the past 3 quarters and we have raised our revenue forecasts with higher profitability to account for the same. While the company has a proposition unmatched in insurance, the credit business is also growing strongly and could generate significant investor value. Key risk: Potential regulatory headwind from Bima Sugam or from the Finance Ministry’s tax rules,” said another brokerage JM Financial which has maintained a Buy rating on the stock with a target price of ₹950.
“In a string of strong results throughout FY23, PB Fintech reported another quarter of robust numbers. PB Fintech has consistently beaten JMFe for the past 3 quarters and we have raised our revenue forecasts with higher profitability to account for the same. While the company has a proposition unmatched in insurance, the credit business is also growing strongly and could generate significant investor value. Key risk: Potential regulatory headwind from Bima Sugam or from the Finance Ministry’s tax rules,” said another brokerage JM Financial which has maintained a Buy rating on the stock with a target price of ₹950.
The views and recommendations above are those of individual analysts or brokerage firms, and not of Mint.
The views and recommendations above are those of individual analysts or brokerage firms, and not of Mint.
