PB Fintech Q2 Results Review - Insurance Led Revenue Beat; Higher Opex Limiting PAT Growth: Dolat Capital

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Dolat Capital Report.PB Fintech Ltd. reported revenue growth of 44% YoY (our estimate: 26%) led by insurance, up 56% YoY (Core insurance revenue up 41% YoY). However, Adjusted Ebitda margin remained flat QoQ to 4.8% (our estimate: 10.5%) as it incurred further additional Opex (Rs 340-420 million) towards S&M and offline capacity. Management’s target of two times industry growth (implies ~30% growth) in Insurance remains intact, while it expects sustained weakness in unsecured credit biz in H2 FY25. Focus remains on prioritizing growth over profitability which may impede PAT guidance moving forward. We cut our FY25/26E earnings by 22%/3% as despite higher growth traction, profitability gains are slow due to higher-than-expected opex to support Insurance segment growth. We believe the valuation looks stretched as upside is well captured but does not bake in the risk of growth moderation. Thus, we maintain ‘Sell’ rating with target price of Rs 1,360 which implies 90 times/60 times PER on FY26E/FY27E earnings..Click on the attachment to read the full report:.Manappuram Finance Q2 Results Review - Rising Delinquencies A Concern, PAT Inline: Dolat Capital.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

PB Fintech Q2 Results Review - Insurance Led Revenue Beat; Higher Opex Limiting PAT Growth: Dolat Capital

The brokerage believes the stock's valuation looks stretched as upside is well captured but does not bake in the risk of growth moderation.

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PB Fintech Q2 Results Review - Insurance Led Revenue Beat; Higher Opex Limiting PAT Growth: Dolat Capital

The brokerage believes the stock's valuation looks stretched as upside is well captured but does not bake in the risk of growth moderation.

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