PB Fintech shares dive 10% as company clarifies on healthcare foray; here's what analysts say

PB Fintech Ltd, parent of online insurance platform Policybazaar, fell sharply in Thursday's trade. The stock slumped 10.31 per cent to hit a day low of Rs 1,545.10. It was last seen trading 6.50 per cent lower at Rs 1,610.75. Despite the mentioned drop, the scrip has delivered multibagger returns by rallying 101.21 per cent on a year-to-date (YTD) basis.

Today's fall in the share price came after the company issued its clarification to exchanges over two news reports titled "PB Fintech May explore plans to enter the Healthcare Space" and "PB Fintech in advance stage of discussion of new model, announcement soon".

"We believe if claims were a quicker and smoother experience it would increase the number of people buying health insurance. It would be much better if interests were aligned between insurers and Hospitals to give customers amazing claims experience and we believe that would grow insurance penetration. Yashish mentioned we are exploring this area in our last analyst call. We continue to explore, but have no decisions to update at the moment," it stated. Yashish Dahiya is the chairman & CEO of PB Fintech.

A decision if and when arrived will be informed to the stock exchanges, PB Fintech added.

"One can buy the stock with a long-term view. For instance, if you are planning to invest Rs 100, you can Rs 50 today and wait for a week or so to consolidate and then review again. The stock has support at Rs 1,500 level," market expert Kush Ghodasara told Business Today TV.

"The stock looked weak on daily charts and can slip towards Rs 1,500 level. Resistance will be seen at Rs 1,720," said Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking.

The counter traded lower than the 5-day, 10-, 20-, 30-day and 50-day simple moving averages (SMAs) but higher than the 100-day, 150-day and 200-day SMAs. The scrip's 14-day relative strength index (RSI) came at 39.24. A level below 30 is defined as oversold while a value above 70 is considered overbought.

As per BSE, the company's stock has a price-to-equity (P/E) ratio of 3263.72 against a price-to-book (P/B) value of 10.16. Earnings per share (EPS) stood at 0.53 with a return on equity (RoE) of 0.31.