PB Fintech shares up 3% as Policybazaar looks to deliver 1st PAT-positive quarterly results today
PB Fintech share price: The stock rose 2.74 per cent to hit a high of Rs 926.25 on BSE. PB Fintech is likely to deliver strong 32 per cent YoY premium growth, which is expected to drive revenues higher by 37.7 per cent, Nuvama said.
- Jan 30, 2024,
- Updated Jan 30, 2024 10:47 AM IST
Shares of PB Fintech Ltd, the parent of Policybazaar, climbed 3 per cent in Tuesday's trade as the company is likely to report first-ever quarterly profit when it reports December quarter results later today. For the quarter, intermediaries such as PB Fintech was expected to benefit from the tailwinds seen in sales of protection and retail health.
The stock rose 2.74 per cent to hit a high of Rs 926.25 on BSE. PB Fintech is likely to deliver strong 32 per cent YoY premium growth, which is expected to drive revenues higher by 37.7 per cent. This would drive an improvement in adjusted Ebitda to Rs 15 crore against a Ebitda loss of Rs 28.20 crore YoY, said Nuvama Institutional Equities.
Dolat Capital expects PB Fintech to report a profit of Rs 26.90 crore compared with a loss of Rs 26.90 crore in the September quarter and Rs 87.60 crore in the year-ago quarter. Revenue for the quarter is seen climbing 34.50 per cent YoY to Rs 820.60 crore for the quarter compare with Rs 610.10 crore YoY. It sees a negative Ebit margin of 7.7 per cent against a negative margin of 13.7 per cent in September and a negative margin of 24.7 per cent in the year-ago quarter.
"Expect revenue growth of 34.5 per cent YoY led by protection business. Operating profit margin loss to inch-up significantly due to on-going investments. Expect Net profit of Rs 26.9o crore," it said while expecting commentary on utilisation of cash and outlook on insurance and lending industry growth will be keenly followed.
JM Financial said PB Fintech may deliver 32 per cent YoY growth in insurance premium and 37 per cent loan disbursals with the respective revenue growing at 45 per cent and 42 per cent, respectively. It sees take-rates expected to remain higher in FY24 across verticals. New Initiatives business will have strong top line growth though rising competitive intensity in PoSP business will result in EBITDA margin sustaining around 2Q levels, the brokerge said.
"We expect group contribution margin at 30.1 per cent as mix shift towards. New Initiatives results in a slight dilution despite consumer mix improvement across respective segments. We expect adjusted EBITDA margin to improve by 906bps/285bps YoY/QoQ due to operating leverage and normalised advertising spends with the company delivering its first PAT-positive quarter," it said.
JM Financial said there remains enough headroom for high growth with declining losses in PoSP and rise in renewals to deliver sustained margin improvement. "Thus, we forecast the company to deliver insurance premium/loan disbursals/revenue CAGR of 30 per cent/29 per cent/30 per cent over FY23-26E period," JM Financial said.
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Shares of PB Fintech Ltd, the parent of Policybazaar, climbed 3 per cent in Tuesday's trade as the company is likely to report first-ever quarterly profit when it reports December quarter results later today. For the quarter, intermediaries such as PB Fintech was expected to benefit from the tailwinds seen in sales of protection and retail health.
The stock rose 2.74 per cent to hit a high of Rs 926.25 on BSE. PB Fintech is likely to deliver strong 32 per cent YoY premium growth, which is expected to drive revenues higher by 37.7 per cent. This would drive an improvement in adjusted Ebitda to Rs 15 crore against a Ebitda loss of Rs 28.20 crore YoY, said Nuvama Institutional Equities.
Dolat Capital expects PB Fintech to report a profit of Rs 26.90 crore compared with a loss of Rs 26.90 crore in the September quarter and Rs 87.60 crore in the year-ago quarter. Revenue for the quarter is seen climbing 34.50 per cent YoY to Rs 820.60 crore for the quarter compare with Rs 610.10 crore YoY. It sees a negative Ebit margin of 7.7 per cent against a negative margin of 13.7 per cent in September and a negative margin of 24.7 per cent in the year-ago quarter.
"Expect revenue growth of 34.5 per cent YoY led by protection business. Operating profit margin loss to inch-up significantly due to on-going investments. Expect Net profit of Rs 26.9o crore," it said while expecting commentary on utilisation of cash and outlook on insurance and lending industry growth will be keenly followed.
JM Financial said PB Fintech may deliver 32 per cent YoY growth in insurance premium and 37 per cent loan disbursals with the respective revenue growing at 45 per cent and 42 per cent, respectively. It sees take-rates expected to remain higher in FY24 across verticals. New Initiatives business will have strong top line growth though rising competitive intensity in PoSP business will result in EBITDA margin sustaining around 2Q levels, the brokerge said.
"We expect group contribution margin at 30.1 per cent as mix shift towards. New Initiatives results in a slight dilution despite consumer mix improvement across respective segments. We expect adjusted EBITDA margin to improve by 906bps/285bps YoY/QoQ due to operating leverage and normalised advertising spends with the company delivering its first PAT-positive quarter," it said.
JM Financial said there remains enough headroom for high growth with declining losses in PoSP and rise in renewals to deliver sustained margin improvement. "Thus, we forecast the company to deliver insurance premium/loan disbursals/revenue CAGR of 30 per cent/29 per cent/30 per cent over FY23-26E period," JM Financial said.
Also read: Azad Engineering shares hit record high on contract with Rolls-Royce; check details