The brand new-age firm narrowed its Q4FY23 losses to Rs 8.9 crore as in comparison with the lack of Rs 220 crore it reported in the identical quarter of the final monetary yr. Within the December quarter, the loss stood at Rs 87 crore. Income from operations jumped 61% year-on-year (YoY) to Rs 869 crore for the January-March interval. The identical stood at Rs 540 crore within the corresponding interval of final yr.
Brokerage agency Morgan Stanley has an ‘chubby’ name on the counter, JM Monetary really useful a ‘purchase’, Kotak maintained an ‘add’ and Nuvama instructed a ‘maintain’ for the inventory.
That is what prime brokerages advocate:
Morgan Stanley: Chubby | Goal: Rs 810
“Good F4Q23 – PBFI achieved adjusted EBITDA break-even, as guided, forward of MS estimates. Consolidated adjusted EBITDA was Rs 280 mn, vs. MSe of Rs 49mn,” it mentioned.
The brokerage estimated that adjusted EBITDA from further premiums mobilized within the quarter (on account of tax modifications) was ~Rs40-50mn, and therefore underlying numbers have been nonetheless higher. “Contributions of such enterprise to premiums and revenues have been additionally low,at Rs 470mn (2% of F4Q premiums) and Rs140-150mn, respectively,” it added.
Kotak Institutional Equities: Add | Goal: Rs 725
After the sharp inventory value appreciation, the brokerage revised its score to ‘add’ from ‘purchase’ with an FV of Rs 725 from Rs 700 earlier.
“PB Fintech stays on a excessive development observe and continues to ship strong development, with marginally optimistic EBITDA (earlier than accounting for ESOP bills) for the primary time. Total development momentum continues with 4QFY23, augmented by business tailwinds. Decrease contribution losses in its new initiatives and bettering leverage will drive profitability over the medium time period,” it mentioned.
Nuvama: Maintain | Goal: Rs 550
Nuvama maintained ‘maintain’ score on the inventory with an elevated DCF-based TP of Rs 595 from Rs 550.
“The inventory is buying and selling at FY24E/25E EV/gross sales of 9.2X/7.4X. With a market share of 90%-plus in on-line insurance coverage gross sales and rising offline presence, the corporate continues to ship robust gross sales together with bettering profitability,” it mentioned.
JM Monetary: Purchase | Goal: Rs 980
The brokerage reiterated a ‘purchase’ score with a goal value of Rs 980, utilizing a DCF-based valuation method. “PB Fintech continued its development of beating estimates by reporting 42.5%/60.9% topline development on QoQ/YoY foundation with income reaching Rs 870 crore, a 15.5% beat on JMFe,” it mentioned.
“Whereas New Initiatives (PB Companions, PB Company and UAE) lowered losses sharply with contribution margin of -1%, we don’t count on that to maintain within the coming quarters with the administration guiding in direction of breaking even this enterprise in FY27,” it added.
(Disclaimer: Suggestions, strategies, views and opinions given by the consultants are their very own. These don’t signify the views of Financial Instances)
