PB Fintech shares trade mixed despite strong Q4 performance

Shares of PB Fintech, the parent company of Paisabazaar and Policybazaar, were trading mixed on Wednesday despite the company reporting a consolidated net profit of ₹60.19 crore, as against the loss of ₹9.34 in the year-ago profit. The company managed to break even in the previous quarter and swung back to profitability in the March quarter of FY24.

Following this, the scrip opened higher at ₹1,249.95, up 0.5%, as against the previous closing price of ₹1,243.35. The company’s share price, however, declined to as much as 6.6% to hit an intraday low of ₹1,243.35 apiece on the BSE. The company’s stock later rebounded and recovered to hit an intraday high of ₹1,279.55, marking an increase of 10.2% from the day’s low.

At 1:24 pm, the share price of the fintech major was trading 0.12% higher at ₹1,244.85. This was in line with the broader BSE Sensex, which was trading 146.96 points or 0.20% higher at 73,658.81. The company’s market capitalisation stood at ₹55,978.56 crore, with more than one lakh shares exchanging hands on the BSE, as against the two-week average of 0.37 lakh shares.

The company hit a 52-week high of ₹1,400 on April 10, 2024, whereas a 52-week low of ₹587.75 on June 2 last year. In the past three months and one year, the counter has surged 35.01% and 101.92%, respectively. In the year-to-date period, the counter has surged 55.01%.

In the January to March period of FY24, the company’s revenue stood at ₹1,089.57 crore, up 25.36 % as against ₹869.10 crore in the corresponding period of the previous year. The company’s EBITDA (earnings before interest, tax, depreciation and amortisation) improved from -5% to 4%. The fintech major’s total insurance for the quarter stood at ₹5,127 crore, contributing to an annual recurring revenue (ARR) of ₹20,000 crore in insurance premium. This growth was driven by growth in new health and life insurance businesses. “Our renewal/trail revenue is at an ARR of ₹577Cr, up from ₹388 Cr last year same quarter. This typically operates at over 85% margins and is a significant source of profit growth,” says the company.

"Credit business sees moderation in growth, however continues to be adjusted EBITDA positive since December 2022. We are now at the annualized run rate of ₹14,ooo crore credit disbursal and about six lakh credit card issuance on an annualised basis. Our total credit score consumer base now is over 43 million," it adds.

Analysts at brokerage firm Citi have given a ‘buy’ call on the stock, raising the target price from ₹1,150 apiece to ₹1,435 apiece.