Global brokerage company Morgan Stanley lowered PB Fintech’s stock from its prior “equal-weight” rating to a “underweight” call on January 13, causing shares to plummet 7%. The reduction was caused by high stock valuations and lower-than-expected profit emergence, according to the brokerage. As a result, Morgan Stanley set a price objective of Rs 1,400 for the shares, which represents a potential 25% decline from Friday’s closing price. Over the past year, the parent company of Policybazaar has already seen an almost 120 percent increase in its share price.
The brokerage firm’s concerns regarding the company’s valuation, specifically its estimated FY27 EV/adjusted EBITDA ratio of approximately 65x, led to the downgrade. The fact that PB Fintech’s profit emergence has been less robust than first expected is another major worry expressed by Morgan Stanley. This slower-than-expected path towards profitability is a significant element contributing to the downgrading.
PB Fintech share price target
PB Fintech is currently trading at Rs 1,752.00, up 3.19% from its previous closing price. PB Fintech’s price has ranged between 1,770.00 and 1,676.40. In the past five days, PB Fintech has given -19.95% and -19.52% so far this year. The sector’s P/E ratio is 10.96, while PB Fintech’s is 354.10.The number of analysts that have started covering PB Fintech is 17. It has a buy rating from three analysts and a strong buy recommendation from four experts. Five analysts have recommended selling the stock.
About the Company
On June 4, 2008, the business was incorporated under the name “Etechaces Marketing and Consulting Private Limited.” On September 18, 2020, the company rebranded itself as PB Fintech Private Limited. A Special Resolution passed by the shareholders on June 19, 2021, converted the company to a Public Limited Company. On June 30, 2021, the company’s name was once more changed to PB Fintech Limited.Mostly serving the financial services sector, which includes insurance, the company offers comprehensive web marketing as well as IT consulting and support services.
The largest online insurance marketplace in India, Policybazaar, and a loan product services platform, Paisabazaar, are both run by the company.The company’s 2014 launch of Paisabazaar aimed to revolutionize Indians’ access to personal credit by highlighting the simplicity, convenience, and openness of choosing from a range of credit cards and personal loans.
