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PB Fintech shares surge after Citi expects stock to retest previous record highCiti said it expects strength in PB Fintech's health insurance fresh business, clocking in over 65% growth quarter-to-date, thereby providing higher visibility on future profitability.By Shloka Badkar   June 5, 2025, 10:41:53 AM IST (Published)2 Min ReadShares of PB Fintech Ltd. gained as much as 2.5% on Thursday, June 5, after brokerage firm Citi projected a potential upside of nearly 19% on the stock from its previous closing price.

Citi has a "buy" rating on PB Fintech with a price target of ₹2,185 per share. The stock ended the previous session at ₹1,841.4 apiece. The revised price target is close to the stock's record high level of ₹2,246.9.

The brokerage said it expects strength in PB Fintech's health insurance fresh business, clocking in over 65% growth quarter-to-date, thereby providing higher visibility on future profitability.

Price rationality in point of sale person (POSP) across the industry and pick up in business activity at Paisabazaar, including PB Connect, will also aid investor sentiment, Citi wrote in its note.

With the merger of a few top players in POSP space and the potential listing of another large player, PB Fintech's market consolidation-driven propensity for pricing rationality remains, according to Citi.

PB Fintech's POSP business contributed between 25% and 30% to the consolidated revenue during financial year 2025.

PB Fintech reported a 184.1% increase in its fourth quarter net profit to ₹171 crore from the ₹60.2 crore in the previous year. Its revenue increased 38.4% to ₹1,507.9 crore in the fourth quarter from ₹1,089.6 crore in the year-ago period.

The company's earnings before interest, taxes depreciation (EBITDA) in the fourth quarter increased to ₹113 crore from ₹5.5 crore in the preceding year.

Its EBITDA margin expanded to 7.5% from 0.5% in the year-ago period.

Of the 20 analysts that have coverage on the stock, eight have a "buy" rating, three have a "hold" rating and nine have a "sell" rating.

Shares of PB Fintech recovered from opening lows and are currently trading with gains of nearly 2% at ₹1,875. The stock has gained 12% in the last one month.

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