Morgan Stanley has reiterated its ‘Underweight’ rating on PB Fintech, assigning a target price of Rs 1,130 per share. The brokerage expressed caution due to moderation in new premium growth and high valuation, despite some operational beats.
As per the note, core new premium growth slowed to 21% year-on-year in Q4FY25, down from 44% in the previous quarter. This deceleration was attributed to slower growth in the savings segment.
While revenue came in below estimates, adjusted EBITDA exceeded expectations, suggesting better cost efficiency or operational leverage. However, Morgan Stanley maintained that the current market price of Rs 1,763.20 reflects a steep valuation, limiting the upside potential in the near term.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult your financial advisor before making any investment decisions.
