Shares of PB Fintech Ltd, the parent company of Policybazaar, climbed over 3% in early trade on May 16, following a sharp 184% year-on-year jump in net profit for the fourth quarter of FY25. The company posted a net profit of Rs 171 crore, compared to Rs 60 crore in the same period last year.
The impressive bottom-line growth was supported by strong operational performance. Revenue from operations surged 38% YoY to Rs 1,508 crore, while total insurance premiums rose 37% to Rs 7,030 crore. The insurance brokerage segment alone recorded a near 99% YoY increase in net profit to Rs 274 crore.
Despite these stellar numbers, Morgan Stanley maintained an 'Underweight' rating, assigning a target price of Rs 1,130, implying a downside of over 36% from the last closing price of Rs 1,777.70. The brokerage flagged concerns around moderating premium growth and stretched valuations, even though adjusted EBITDA of Rs 113 crore beat estimates.
Meanwhile, Jefferies and Citi remained bullish on the stock. Jefferies retained its 'Buy' call with a target of Rs 2,000, projecting a 12.5% upside, while Citi forecasted a 21% upside with a target of Rs 2,150, citing better-than-expected earnings and continued digital momentum.
PB Fintech’s shares have gained over 7% in the past five trading sessions, although they remain down nearly 15% in 2025 YTD.
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