PB Fintech Jumps The Most In Nearly Two Years On Q3 Profit Beat
The fintech company reported a 7.3% surge in revenue at Rs 870.9, that compares with the Rs 851.1 crore revenue estimated by Bloomberg.
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%
