Policybazaar Ends Lower Despite Upbeat Morgan Stanley Commentary
The research house maintained its 'equal-weight' stance and its price target of Rs 1,160 on the stock.
Shares of PB Fintech Ltd., the operator of Policybazaar and Paisabazaar, gained after Morgan Stanley said the company's loan disbursement and premium growth was stronger than expected in the quarter ended December.
The research house maintained its "equal-weight" stance and its price target of Rs 1,160 on the stock, which implies a nearly 30% upside from current levels.
Key highlights from PB Fintech's Q3 update:
Total insurance premiums sourced in rose 67% year-on-year to Rs 1,786 crore—8% above Morgan Stanley's estimate.
Total insurance premiums sourced in the first nine months were up 38% year-on-year to Rs 4,803 crore. That's in line with Morgan Stanley's estimate.
Loan disbursements were up 89% year-on-year to Rs 1,880 crore—39% higher than Morgan Stanley's forecast.
While the company's third-quarter numbers were stronger than forecast, the performance was broadly in line with expectations in the first nine months of the fiscal 2021-22, Morgan Stanley said.
"We think the Q3 update increases the visibility of 40% revenue growth for FY22, which is a key investor milestone," it said. That, it said, should augur well for the stock in the near term given the recent correction.
Shares of PB Fintech gained as much as 3.9% to Rs 935 apiece as of 9:20 a.m., before ending 4.3% lower. Each of the three analysts tracking the company, has a 'buy', 'hold' and 'sell' call. The average of 12-month price targets compiled by Bloomberg implies a upside of 30.5%.