PB Fintech’s Remarkable Turnaround in CY23

PB Fintech's Remarkable Turnaround in CY23

VoM News Desk | November 23, 2023 | 07:50 PM IST | Breaking News | Follow on Google News

PB Fintech’s Remarkable Turnaround in CY23

PB Fintech’s Remarkable Turnaround in CY23

PB Fintech, the parent company of Policy Bazaar and Paisa Bazaar, has demonstrated a remarkable recovery in CY23, bouncing back from a significant decline in CY22. The stock has delivered an impressive return of 82% this year, appreciating from ₹451 to ₹821.40.

Key Highlights of PB Fintech’s Performance

• Strong Yearly Growth: After a modest decline of 4.4% in January, the stock gained significant momentum, showing a 30.26% increase from February and a 17% uptick in November.
• Contrast to Previous Year: This growth starkly contrasts with the 53% loss in CY22, highlighting the company’s robust turnaround.
• Improved Financials: The company’s net loss narrowed significantly in the September quarter, from ₹187 crore the previous year to ₹21 crore. Revenue from operations rose by 42% YoY to ₹812 crore.
• EBITDA Margin Improvement: There was a marked improvement in EBITDA margins, thanks to effective cost management, including reductions in ESOPs, employee expenses, and advertising costs.

Segment-Wise Growth and Strategic Moves

• Health & Term Insurance: The core online business segment experienced a 53% YoY growth in new premium during Q2 FY24.
• PaisaBazaar’s Impact: PaisaBazaar’s collaboration with lending partners and focus on unassisted sales have led to increased profitability and digitalization in various segments.

Brokerage Recommendations and Future Prospects

• Keynote Capitals’ ‘Buy’ Recommendation: The domestic brokerage has set a target price of ₹968, emphasizing the company’s growth in renewal commission, strategic expansion, and cost management.
• Potential Catalysts: The company is poised for further growth, driven by renewal commission growth, expansion into smaller cities, and rigorous cost management.
• Digitalization Achievements: Over 75% of credit cards and 50% of unsecured lending are fully digitalized, with significant digitalization in insurance transactions as well.

Market Position and IPO Overview

• Listing History: PB Fintech made a decent debut on the exchanges in November 2021, listing at ₹1,202, a 22.7% premium over the issue price of ₹980.
• Current Market Position: Despite the current success, the stock is trading 16.22% lower than its issue price.

PB Fintech’s recovery and growth in CY23 are indicative of its resilient business model and successful strategic initiatives, positioning it as a key player in the digital insurance and financial services market.

VoM News Desk

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