HSBC has initiated coverage on PB Fintech, India’s largest online insurance marketplace, with a Buy rating and a target price of ₹2,550, implying a 16% upside in the stock price from current levels. The brokerage highlights PB Fintech’s significant competitive advantage driven by scale, which positions it well in the expanding digital insurance space.
HSBC forecasts a strong profit after tax CAGR of 66% over FY25-28, supported by a 27% revenue CAGR. The company’s substantial operating leverage is expected to improve EBITDA margins significantly, from approximately 3% in FY25 to 19% in FY28. HSBC believes PB Fintech’s robust growth prospects and profitability trajectory make it an attractive long-term investment.
The company’s focus on scaling its operations and leveraging its technological platform could further solidify its market leadership, especially as insurance penetration continues to rise in India.
