Shares of PB Fintech, the parent company of Policy Bazaar and Paisa Bazaar, have been climbing steadily in recent months, achieving impressive returns for investors. Since January, the stock has risen from ₹794 to ₹1,931, a remarkable gain of 144%.
The stock has seen increases in 8 out of 9 months, with January being the standout month, rising by 26.14%. In August, it gained 22%. This strong performance has brought the stock close to the ₹2,000 mark, and the company’s market cap is nearing ₹1 lakh crore, just ₹12,000 crore short of that milestone.
Currently, the stock is trading at 97% higher than its IPO price of ₹980. Since hitting an all-time low of ₹356 in November 2022, PB Fintech has surged by 442%, showing strong growth and investor confidence.
PB Fintech provides online marketing, IT consulting, and support services mainly for the financial services industry, including insurance. It operates Policy Bazaar, India’s largest digital insurance marketplace, and Paisa Bazaar, which focuses on lending products. The company plans to launch PB Money, a personal finance management platform, in the second quarter of 2024.
As of March 31, 2024, Policy Bazaar had over 77.3 million registered users, with 16.6 million unique buyers who purchased a total of 42.1 million insurance policies. Paisa Bazaar serves 43.4 million consumers who accessed free credit scores, making up 15% of India’s active credit score users.
PB Fintech has formed 53 partnerships with insurance companies and over 65 collaborations with lenders, strengthening its position in the market. A recent report from Jefferies, a global brokerage firm, noted that digital brokers like PB Fintech are benefiting from increased insurance adoption and a shift toward online services. With a 90% market share in online insurance, PB Fintech is expected to grow premiums by 30% from FY25 to FY27 and potentially increase its EBITDA fivefold.
Riyank Arora, a technical analyst at Mehta Equities, mentioned that PB Fintech has consistently risen over the past six months, surpassing its IPO high of ₹1,470 and currently trading around ₹1,930. He identified strong support at ₹1,680 and immediate support at ₹1,800, suggesting limited downside risk. With continued bullish momentum, the stock could reach ₹2,100 and ₹2,200 soon, with longer-term targets of ₹2,500 to ₹2,640.
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