PB Fintech Jumps The Most In Nearly Two Years On Q3 Profit Beat

Shares of PB Fintech Ltd., the parent company of Policybazaar and Paisabazaar, surged over 14% after its third-quarter profit beat analysts' estimates.

The fintech company reported a consolidated net profit of Rs 37.2 crore in the quarter ended December 2023, compared with a loss of Rs 20.24 crore in the same quarter a year earlier, according to an exchange filing. A Bloomberg poll of analysts estimate pegged a net profit of Rs 24 crore.

PB Fintech Q3 Earnings FY24 (Consolidated QoQ)

• Revenue up 7.3% at Rs 870.9 crore. (Bloomberg estimate: Rs 851.1 crore).

• Ebitda loss at Rs 25.5 crore vs Ebitda loss of Rs 90.7 crore (Bloomberg estimate of Rs 12.9 crore).

• Net profit at Rs 37.2 crore vs loss of Rs 20.24 crore (Bloomberg estimate: Rs 24 crore).

Despite the quarter seeing relatively tepid insurance industry growth, PB Fintech reported a healthy 34.7%/55.4% year-on-year growth in core and new initiatives insurance premiums, according to JM Financial note.

"Meanwhile, loan disbursals grew 18.5% year-on-year due to the impact of unsecured disbursals slowdown," it said in Jan 31 note.

PB Partners business has now reached 17,100 pin-codes with Tier 2+ cities contributing to 76% of the premium. This business is now break-even at contribution level, as the company has moved towards smaller and higher quality retail agents, JM Financial said.

Shares of PB Fintech rose as much as 14.37% at Rs 1,039 the highest jump since May 13, 2022. It is trading 11.62% higher at 9:54 p.m. This compares to a 0.17% advance in the NSE Nifty 50.

Total traded volume so far in the day stood at 17 times its 30-day average. The relative strength index was at 74, implying the stock is overbought.

Of the 17 analysts tracking the company, 12 maintain a 'buy', two recommends a 'hold,' and three suggest a 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies a downside of 4.9%