Morgan Stanley has maintained an underweight rating on PB Fintech, assigning a target price of ₹1,370 per share. This is notably lower than the current market price of ₹1,808.00, suggesting a cautious view on the stock’s valuation and near-term growth prospects.
The company’s core new premium grew 23% year-on-year, slightly ahead of Morgan Stanley’s expectation of 21%. However, unit-linked insurance plans (ULIP) saw muted growth at 5%, while ex-savings premium growth was strong at 42%.
Despite this, overall financial performance fell short. Revenue was 3% below estimates, and adjusted EBITDA missed by 6%, highlighting pressure on profitability. Additionally, credit revenues declined 22% YoY and 11% sequentially, underscoring weakness in the lending vertical.
Morgan Stanley’s continued underweight rating reflects its concerns over these shortfalls and the stock’s elevated valuation amid mixed business performance.
Disclaimer: This article is based on Morgan Stanley’s stock research report. The views and target price mentioned are theirs. This does not constitute a recommendation to buy or sell any stock. Please consult a registered financial advisor before making any investment decisions.
