Shares of PB Fintech Ltd rose 3% on January 31, trading at ₹1,703.75, up ₹47.65 from the previous close of ₹1,656.10. The stock saw a day range between ₹1,595.10 and ₹1,708.70, with a market capitalization of ₹778.73 billion. The surge followed mixed but largely optimistic views from key brokerages, reflecting the company’s robust Q3 results.
Brokerage Views:
- Morgan Stanley (MS):
- Call: Underweight
- Target Price: ₹1,400/sh
- Comments: Adjusted EBITDA was in line for Q3. MS has cut its FY25 forecast and expects consensus estimates to follow suit, citing slower savings growth affecting core new premium growth. Steep valuation led to the underweight stance.
- HSBC:
- Call: Buy
- Target Price: ₹2,530/sh
- Comments: The company reported robust premium growth and EBITDA margin expansion in Q3, with its core operating performance meeting expectations. HSBC maintains a healthy medium-term outlook, forecasting FY25-28 CAGR of 27% in revenue, 18% EBITDA margin, and 17% profit margin by FY28.
The mixed brokerage recommendations highlight PB Fintech’s short-term challenges in premium growth but a promising long-term outlook due to strong operating efficiency and profitability projections.
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