Shares of PB Fintech Ltd., the parent company of Policybazaar, climbed over 5% on Tuesday, January 23, following a positive outlook from Citi. The brokerage firm placed the stock on a 90-day positive catalyst watch, reaffirming its “buy” rating with a price target of ₹2,000. This target suggests a 24% upside potential from the previous close of ₹1,610.70.
Key Drivers of Growth
- Citi’s Confidence: The brokerage expressed confidence in PB Fintech’s ability to sustain new business growth in retail protection, retail health, and savings segments, enhancing medium- to long-term revenue visibility.
- Hybrid Strategy Success: PB Fintech’s effective execution of its “phy-gital” strategy, combining physical and digital approaches, has boosted its ability to scale its high-ticket retail health and life savings businesses.
- Financial Targets: The management has reiterated its FY27 net profit target of ₹1,000 crore. Additionally, the company is considering a $100 million investment in its new venture, which could further cushion investor sentiment.
Market Context
PB Fintech shares have seen a 30% correction from their peak of ₹2,246.90. Citi noted that management’s commentary on operational improvements, such as indexed productivity and margin trajectory, could further bolster investor confidence.
Analyst Ratings
Of the 20 analysts covering the stock, eight have issued a “buy” rating, three recommend “hold,” and nine suggest “sell.” Despite mixed views, Citi’s positive outlook has provided a near-term boost to the stock.
As of today, PB Fintech shares were trading at ₹1,687.30, up 4.76% or ₹76.60 from the previous close.
