pb fintech share price: PB Fintech shares down over 64% from high! Is there more pain ahead?

Shares of , the dad or mum firm of and Paisa Bazaar, have fallen greater than 64 per cent from its November 2021 highs placing the inventory firmly in bear grip. The scrip hit a 52-week excessive of Rs 1,470 on November 17, 2021.

The inventory tanked over 0.6 per cent to hit an all time low of Rs 521.35 on BSE. With a market capitalisation of Rs 23,699 crore, the shares are buying and selling under 5, 10, 20, 50 and 100 DMA.

The insurance coverage and monetary aggregator made an honest debut on Dalal Road. The scrip bought listed at a premium of 17.34 per cent at Rs 1,150 on the NSE towards the difficulty value of Rs 980.

Is there extra ache forward?
Manoj Dalmia Founder and Director-Proficient Equities Restricted mentioned, “Though the revenues are growing, the working revenue remains to be unfavourable. FIIs have additionally elevated their holdings within the March quarter. Wanting on the value motion we will count on additional promoting to Rs 454, shopping for is usually recommended solely above Rs 628,” he added.

“The valuations of the corporate have corrected considerably for the reason that IPO. Nonetheless, until the time we don’t see operational profitability or a path in direction of the identical, together with a constant natural progress within the topline, it is going to discover difficulties in gathering curiosity from retail and institutional traders. Wirth IRDA concentrating on 30-50 per cent CAGR progress in Gross Written Premium for all times insurance coverage insurance policies over the subsequent 5 years, with an intent to extend the insurance coverage penetration in India, tech primarily based platforms like PB will play a serious position within the progress,” Divam Sharma, Founder at Inexperienced Portfolio, SEBI Registered Portfolio Administration Service Supplier instructed ETMarkets.

“We additionally imagine that the {industry} will undergo a consolidation going ahead, which can profit PB. Traders ought to nonetheless skip investing within the inventory for now and watch for the street to profitability earlier than investing,” Sharma added.

“The inventory appears good for long-term traders at these ranges. One should purchase this inventory within the vary of Rs 470 to 520 with a cease lack of Rs 444 and a goal of Rs 750,” mentioned Ravi Singhal, CEO, GCL.

Not too long ago, Kotak Institutional Equities initiated protection on PB Fintech with a goal value of Rs 700 per share, signalling a 33.5 upside from the present market value. It believes that prime multi-year progress will result in constant market share good points, thus bettering the unit economics and drive working leverage over time.

“Policybazaar’s dominant place (90% market share) within the on-line insurance coverage market is pushed by (1) its pioneering market place, industry-first choices, massive model investments translating into sturdy model recall, (2) a strong technological spine, and (3) use of wealthy buyer insights to enhance claims expertise for its insurance coverage companions and develop custom-made merchandise,” the brokerage home added.

International brokerage agency Morgan Stanley has a goal of Rs 945 on PB Fintech, which is under its situation value. It believes that the productiveness metrics of the corporate are poised to enhance. Home brokerage agency

finds the inventory price Rs 940.

PolicyBazaar reported a widening of losses to Rs 219.60 crore within the March quarter from Rs 64.38 crore within the year-ago quarter, whilst revenues doubled for the quarter to Rs 540.29 crore. Losses had been, nevertheless, down from Rs 298 crore within the December quarter.

Earlier in February this yr, Alok Bansal, co-founder of PB Fintech, had bought 28,57,820 shares of the corporate for Rs 236 crore.

(Disclaimer: Suggestions, options, views and opinions given by the specialists are their very own. These don’t symbolize the views of Financial Occasions)