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PB Fintech share price target at ₹2,150 or ₹1,130 - Analysts views divided after Q4 resultsOut of the 20 analysts who have coverage on PB Fintech, nine of them have a 'Buy' rating, three say 'Hold', while eight others have a 'Sell' recommendation.By Meghna Sen   May 16, 2025, 8:38:59 AM IST (Published)3 Min ReadShares of PB Fintech Ltd., the parent company of Policybazaar and Paisabazaar, will be in focus on Friday, May 16, following the company’s March quarter earnings, which showed year-on-year improvement across most parameters.

The fintech major's consolidated profit zoomed 2.8x to ₹171 crore in the fourth quarter from ₹60 crore in the year-ago quarter. Operating revenue grew 38% to Rs 1,508 crore, while margin surged to 7.5% from 0.5% last year.

Out of the 20 analysts who have coverage on PB Fintech, nine of them have a 'Buy' rating, three say 'Hold', while eight others have a 'Sell' recommendation.

Jefferies has maintained a 'Buy' rating on PB Fintech with a price target of ₹2,000, which implies a potential upside of 13% from Thursday's closing levels. As of yesterday's close, shares of PB Fintech had corrected 22% from their peak of ₹2,254.95.

The brokerage wrote in its note that PB Fintech's online premium grew 35% year-on-year, in line with estimates. This growth was driven by a 49% rise in renewals and increased traction in new health insurance (HI) policies, which offset the slower growth in the savings business.

Revenue from the credit business declined 22% year-on-year, but overall core revenue rose 31%.

The company’s contribution margin expanded by over 100 basis points year-on-year, aided by a better business mix. Adjusted EBITDA rose 70%, slightly ahead of expectations.

Jefferies mentioned that the drag from new initiatives is easing. Net profit jumped 184% year-on-year to ₹170 crore. On an adjusted basis, factoring out tax and ESOP costs, the figure was slightly ahead of estimates.

Citi has reiterated a 'Buy' recommendation on PB Fintech with a price target of ₹2,150. The brokerage said that the company's profit stood at ₹170 crore, beating estimates of around ₹150 crore.

Citi mentioned that negligible taxes (16% in 9MFY25), a sharp decline in ESOP expense run-rate, margin improvement, and strong growth in the back book are all contributing to a strong profitability trajectory.

Momentum in the core fresh insurance premium (excluding savings) remained strong, growing 38% year-on-year within the 34-44% YoY range seen over the past eight quarters.

However, a sharp moderation in the savings segment led to a more modest 22% YoY growth in the overall core fresh business.

After three consecutive quarters of 300–500 basis points (bps) YoY decline in contribution margin, Q4 saw a 100 bps YoY increase, largely reflecting reduced pressure from the savings segment, the brokerage added.

On the flip side, Morgan Stanley has an 'Underweight' rating on PB Fintech, with a price target of ₹1,130.

The brokerage mentioned that core new premium growth slowed to 21% year-on-year in Q4, below its expectation of 33% and down from 44% in Q3. This was mainly due to weaker growth in the savings (ULIP) segment, though growth excluding savings remained healthy at 38%.

Revenue was 2% below Morgan Stanley’s estimates, while adjusted EBITDA came in at ₹149 crore, 1% above expectations.

The 'Underweight' stance is driven by what Morgan Stanley views as a steep valuation of 62x FY27 EV/adjusted EBITDA.

Shares of PB Fintech Ltd. settled 0.90% higher on Thursday at ₹1,770.10 on BSE. The stock has risen nearly 10% in the last five trading sessions, but is down 17% so far in 202.Continue ReadingNote To ReadersDisclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsPB Fintechshare market today