PriyaPatelTLDR: Shares of PB Fintech Ltd. have crossed their IPO price of ₹980 after the company reported its first-ever quarterly profit in the December quarter. The stock had slipped below its IPO price in January 2022 but has since rebounded. PB Fintech reported a net profit of ₹37 crore, compared to a loss of ₹87 crore during the same period last year. The adjusted EBITDA margin for the quarter stood at 4%.
After two years, PB Fintech shares have finally crossed their IPO price of ₹980 following the company’s first-ever quarterly profit in the December quarter. The stock had previously fallen below its IPO price in January 2022 and hit an all-time low of ₹356 in November of that year. Since then, the stock has rebounded and is now trading above its IPO price, although it is still 33% below its all-time high of ₹1,470.
PB Fintech reported a net profit of ₹37 crore for the quarter, a significant improvement compared to a loss of ₹87 crore during the same period the previous year. The adjusted EBITDA margin for the quarter was 4%, in contrast to a negative margin in the year-ago quarter.
Morgan Stanley maintains an overweight stance on PB Fintech with a price target of ₹965. However, the brokerage firm acknowledges that there could be downside risks to near-term forecasts and suggests that the stock may take a breather after its recent outperformance. Macquarie, on the other hand, maintains an Underperform rating on the stock with a price target of ₹610. The company has seen declining insurance take rates and revenues for Paisabazaar, and believes that the asking rate for the March quarter is achievable given strong seasonality.
Out of the 17 analysts that track PB Fintech, 12 have a “buy” rating, two say “hold” and three have a “sell” call on the stock.
