Shares of PB Fintech are in focus after multiple brokerages issued divergent views on the stock following its third-quarter performance, while highlighting regulatory developments, fund-raising plans and potential overseas acquisitions.
Citigroup maintained a Buy rating on PB Fintech with a target price of ₹2,225. The brokerage said a robust third quarter underpins the company’s strong and niche positioning. Citi noted that incremental regulatory changes aimed at modifying commission realisation mechanisms or marginally reducing commission pools are unlikely to materially alter business dynamics. Management has also highlighted interest in inorganic international expansion, with a board meeting scheduled on February 5, 2026, to consider fund raising. Citi added that management has indicated any planned acquisition is likely to be EPS accretive and involve a performing entity.
Bernstein maintained an Outperform rating with a target price of ₹2,210, stating that while the company reported a good Q3, investor focus remains on potential M&A activity and fund-raising plans. The brokerage said PB Fintech confirmed plans to seek board and shareholder approvals for a fund raise and a possible overseas acquisition. Bernstein noted that favourable volume and margin outcomes helped offset take-rate compression during the quarter, though discussions suggested commission regulations are likely, with no clarity on the extent of curbs. The brokerage expects wide dispersion in investor sentiment, keeping the stock volatile.
Morgan Stanley, however, maintained an Underweight rating with a target price of ₹1,370. The brokerage said contribution and adjusted EBITDA beat forecasts due to strong cost control, while new protection premium growth benefited from GST tailwinds. Despite this, Morgan Stanley stayed underweight citing expensive valuation amid uncertainties around potential commission regulation, fund raising and international acquisitions.
CLSA reiterated an Outperform rating with a target price of ₹2,050, highlighting a strong Q3FY26 performance. The brokerage said PAT of around ₹1.9 billion came in 20% ahead of estimates, driven by robust 45% YoY premium growth and only a marginal decline in take rates despite the GST 2.0 impact. Growth was broad-based, led by a 79% YoY rise in new health premiums, while lending disbursals increased 17% QoQ. CLSA said margins remained healthy, supported by stable core contributions and improvement in new initiatives. Management is evaluating international inorganic opportunities and plans to seek approvals to raise funds via a QIP.
At the current market price of ₹1,545.00, Citi’s target price implies an upside of around 44%, Bernstein’s target suggests an upside of roughly 43%, and CLSA’s target indicates an upside of about 33%. In contrast, Morgan Stanley’s target price implies a downside of approximately 11%.
Disclaimer: This article is based solely on brokerage commentary. The views expressed are those of the respective brokerages and do not constitute investment advice or recommendations by the publication.
