PB Fintech shares rise 5%; Kotak Institutional Equities upgrades to 'Add'

PB Fintech, operator of PolicyBazaar and Paisabazaar, shares advanced 5.3 per cent in trade on BSE, logging an intraday high at Rs 1,433 per share. Around 11:26 AM, PB Fintech share price was up 2.63 per cent at Rs 1,395.6 per share on BSE.

 

In comparison, the BSE Sensex was up 1.08 per cent at 74,967.49. The market capitalisation of the company stood at Rs 64,093.95 crore. The 52-week high of the stock was at Rs 2,254.95 per share and the 52-week low was at Rs 1,091.3 per share.

 

Kotak Institutional Equities upgraded PB Fintech to 'Add' from 'Reduce' as it remains assertive on the company's ability to deliver 1.8-2.0X industry-level growth, with improving leverage driving strong profitability. The brokerage's target price for the stock was at Rs 1,525 per share.

 

"We believe that PB has multiple growth segments to toggle, the acumen to identify demand gaps, and the ability to capitalise on the same to sustain 1.8-2.0X industry growth," the report read. 

 

The company delivered 63 per cent premium growth (in the digital business) in 1HFY25 and 43 per cent in 3QFY25.

 

PB Fintech has a strong and indispensable franchise, which requires minimal insurer support as compared to agencies or bancassurance and hence, as per the brokerage it will continue to command superior commissions.

 

Kotak believes Policybazaar is a strong insurance brand in India, with unparalleled mindshare. Even when the insurance is often reckoned as a push product, PB Fintech has used a combination of pull and nudge to sell need-based insurance, making it an indispensable force for insurance companies to reckon with.

 

PB Fintech’s stock has corrected 36 per cent in CY2025 year-to-date (Y-T-D), likely reflecting concerns on growth in the insurance sector and improvement in its profitability, as per the brokerage. 

 

Slowdown concerns include slower Unit Linked Insurance Plan (ULIPs) (one of the high growth drivers in 9MFY25 for PB and life companies), lower motor sales and lack of identifiable near-term growth drivers for the industry. 

 

In the past one year, PB Fintech shares have gained 20 per cent against Sensex's rise of nearly 2 per cent.