PB Fintech, the parent company of Policy Bazaar and Paisa Bazaar, has been riding a wave of success on Dalal Street, with its stock consistently delivering impressive returns to shareholders.
Over the past few months, the company’s shares have been on a remarkable upward trajectory, breaking record highs and showcasing a level of growth that has captured the attention of both investors and market analysts.
The stock’s ascent began in January when it crossed its initial public offering price for the first time in two years. Since then, the momentum has been steady and strong, propelling the stock price from ₹794 apiece to its current trading price of ₹1,931.
This represents a staggering gain of 144 percent, a testament to investors’ confidence in the company’s future prospects. As PB Fintech’s shares continue to rise, the stock is inching closer to the ₹2,000 mark, a psychological milestone that many are watching closely.
One of the most notable aspects of PB Fintech’s stock performance has been its consistency. The stock has posted gains in eight out of nine months this year, including the current month of September.
January saw the highest monthly increase, with a jump of 26.14 per cent, followed closely by August, which recorded a 22 per cent rise. The company’s market capitalization is also approaching ₹1 lakh crore, though it is currently about ₹12,000 crore short of that milestone.
What makes this rally even more impressive is the stock’s performance compared to its IPO price of ₹980 apiece. At its current trading price, PB Fintech is up 97 per cent from its IPO price. Even more striking is the stock’s recovery from its all-time low of ₹356 apiece in November 2022. Since hitting that low, the stock has soared by an astounding 442 per cent, further underscoring the company’s strong rebound and the growing investor confidence in its business model.
PB Fintech operates in the financial services industry, primarily providing integrated online marketing, IT consulting, and support services. Its two flagship platforms, Policy Bazaar and Paisa Bazaar, are leaders in their respective sectors.
Policy Bazaar is India’s largest digital insurance marketplace, while Paisa Bazaar offers a range of lending products and services. Together, these platforms have built a dominant presence in the market, attracting millions of consumers looking for insurance and lending solutions.
The company is also gearing up to expand its product offerings. In Q2, PB Fintech is set to launch PB Money, a personal finance management platform designed to help users manage payments, investments, and insurance. This new venture is expected to further enhance the company’s portfolio and solidify its position in the financial services space.
As of March 31, 2024, Policy Bazaar had over 77.3 million registered consumers, with 16.6 million unique buyers purchasing a total of 42.1 million policies. This translates to an average of 2.5 policies per customer, a strong indicator of customer loyalty and repeat business.
Paisa Bazaar, on the other hand, serves 43.4 million consumers who accessed their free credit score, making up 15 per cent of India’s active credit score users. These figures highlight the scale at which PB Fintech operates and its ability to tap into the growing demand for online financial services.
PB Fintech’s partnerships have also played a key role in its success. By the end of FY24, the company had formed 53 partnerships with insurance providers and over 65 collaborations with lending institutions. These alliances have not only strengthened the company’s market position but have also expanded its reach, allowing it to offer a wider range of products and services to its customers.
Global brokerage firm Jefferies recently emphasized that digital brokers like PB Fintech are benefiting from the rising penetration of insurance and the growing preference for online channels among consumers.
With over 90 per cent market share in the online insurance space, PB Fintech is well-positioned to capitalize on these trends. Jefferies expects the company to achieve a 30 per cent compound annual growth rate in premiums between FY25 and FY27. Furthermore, Jefferies predicts that PB Fintech’s renewal book could drive 5x EBITDA growth, thanks to strong operating leverage.
Technical analysts are also bullish on PB Fintech’s stock. Riyank Arora, a technical analyst at Mehta Equities, noted that the stock has maintained a consistent upward trajectory, breaking past its all-time high of ₹1,470 set on IPO day.
He believes the stock has strong support at ₹1,680 and immediate support at ₹1,800, indicating limited downside risk. Arora forecasts that the stock could reach ₹2,100 and ₹2,200 in the near term, with longer-term upside potential extending to ₹2,500 to ₹2,640 based on Fibonacci retracements.
